Tier-2 & Tier-3 Cities: The Next Growth Engines for Real Estate
Jamshri has been a trusted name in Indian industry for over a century, with a rich history in textiles. However, changing market dynamics and rising operational challenges led the company to diversify into real estate in 2018. This strategic pivot was driven by the need to create sustainable value for stakeholders and to leverage Jamshri’s prime land assets. The move aligns with India’s rapid urbanization and growth in infrastructure, marking a significant evolution from an industrial house to a modern development enterprise.
Our real estate growth is anchored on two key priorities. The first is integrated mixed-use development, where retail, offices, residences, and lifestyle spaces come together in a way that each complements the other, creating vibrant hubs rather than standalone projects. The second is adaptive reuse of existing structures, focusing on repurposing historic or dormant assets instead of demolishing them. This approach allows us to preserve legacy while unlocking fresh economic and social value. Together, these priorities ensure that our projects are not only commercially sustainable but also add character and long-term relevance to the communities we serve.
Work-from-home continues to remain relevant, even as offices are regaining momentum. The future of work is not about replacing offices but redefining them. Offices are evolving into collaborative hubs, while homes or co-working spaces serve as extensions for focused tasks. For real estate, this shift means designing with adaptability in mind, spaces that support both professional and personal needs.
Tier-2 and Tier-3 cities are increasingly becoming the next growth engines for Indian real estate. Improved connectivity, government focus on infrastructure, and the spread of digital services are driving this shift. These cities are witnessing a surge in demand for quality housing, organized retail, and modern office spaces, fueled by rising disposable incomes and aspirational lifestyles. For developers, the opportunity lies in creating affordable yet aspirational projects that bring metro-level quality to these emerging markets. Over the next decade, Tier-2 and Tier-3 hubs will not only decongest metros but also create self-sustaining ecosystems of growth, making them central to India’s real estate story.
The growth of cities like Gurgaon highlights both the promise and pitfalls of rapid urbanization. While it has become a major business hub, the strain on infrastructure, traffic, and basic services underscores the risks of expanding without long-term planning. At Jamshri, we see this as a call to design projects that balance growth with liveability, by integrating essential services, green spaces, and sustainable practices from the outset. The aim is to ensure that urban development not only supports economic progress but also enhances the quality of life for residents.
Integrated townships and new infrastructure are driving growth in emerging markets by combining housing, work, retail, and leisure into self-sustaining communities. They cut commute times, improve quality of life, and create long-term value for both residents and developers. With better connectivity from highways and metro links, such projects are becoming the blueprint for urban expansion, particularly in fast-growing Tier-2 and Tier-3 cities.
The aspirations of homebuyers are shifting towards well-planned communities that go beyond housing to include open green spaces, children’s play areas, wellness facilities, reliable parking, and safe, walkable streets. This reflects a growing desire for holistic living environments that balance comfort, health, and community. At the same time, NRIs and HNIs are renewing their interest in second homes and investments in India, driven by economic confidence, emotional ties, and the pursuit of a better quality of life. Their demand for premium design, green certifications, and serviced amenities is raising benchmarks across emerging cities, pushing the real estate sector to deliver at higher standards.
