Tier-2 & Tier-3 Cities: The Next Growth Engines for Real Estate
Jamshri Realty Ltd. is leveraging its legacy in textiles to drive sustainable growth in Tier-2 and Tier-3 cities through integrated mixed-use developments and adaptive reuse of existing structures.
Real EstateTier2 CitiesTier3 CitiesIntegrated DevelopmentSustainable GrowthReal EstateOct 07, 2025
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.
Frequently Asked Questions
What is Jamshri’s history and how did it transition from textiles to real estate?
Jamshri began its journey in textiles over a century ago. In 2018, the company made a strategic decision to move into real estate due to changing market dynamics and rising operational challenges. This pivot was driven by the need to create sustainable value and leverage its prime land assets, aligning with India’s rapid urbanization and infrastructure growth.
What are the key focus areas driving Jamshri’s growth in the real estate sector?
Jamshri’s growth in real estate is anchored on two priorities: integrated mixed-use development, where retail, offices, residences, and lifestyle spaces come together, and adaptive reuse of existing structures, focusing on repurposing historic or dormant assets. These priorities ensure projects are commercially sustainable and add character to communities.
How is work-from-home still relevant in the new phase of office work?
Work-from-home remains relevant even as offices regain momentum. The future of work is a hybrid balance, with offices evolving into collaborative hubs and homes or co-working spaces serving as extensions for focused tasks. Real estate must adapt to support both professional and personal needs.
Why are Tier-2 and Tier-3 cities emerging as the next growth engines for real estate?
Tier-2 and Tier-3 cities are emerging as growth engines due to improved connectivity, government infrastructure focus, and the spread of digital services. These cities see a surge in demand for quality housing, organized retail, and modern office spaces, driven by rising disposable incomes and aspirational lifestyles.
What lessons can be drawn from the rapid growth of cities like Gurgaon?
The growth of cities like Gurgaon highlights the risks of rapid urbanization without long-term planning. The strain on infrastructure and basic services underscores the need for real estate projects that integrate essential services, green spaces, and sustainable practices to enhance quality of life.
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