Tier-2 & Tier-3 Cities: The Next Growth Engines for Real Estate
Explore how Jamshri, a century-old Indian company, transitioned from textiles to real estate, focusing on integrated developments and the potential of Tier-2 and Tier-3 cities.
Real EstateTier2 CitiesTier3 CitiesUrban DevelopmentIntegrated TownshipsReal EstateOct 07, 2025
Jamshri has been a trusted name in Indian industry for over a century. While it began its journey in textiles, changing market dynamics and rising operational challenges made it clear that diversification was essential. In 2018, the company made a strategic decision to move from textile manufacturing and channel its strengths into real estate, a sector where it saw stronger long-term potential.
This pivot was driven by the need to create sustainable value for stakeholders and to leverage Jamshri’s prime land assets. The move reflects a larger vision of aligning with India’s rapid urbanisation and growth in infrastructure. Today, Jamshri is focused on developing projects that combine its legacy of resilience with forward-looking opportunities in real estate, marking a significant evolution in its journey from an industrial house to a modern development enterprise.
Q2. What are the key focus areas driving Jamshri’s growth in the real estate sector?
Our real estate growth is anchored on two 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, with a focus 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.
Q3. Many professionals are back in offices now. Is work-from-home still relevant in this new phase?
Work-from-home continues to remain relevant, even as offices are regaining momentum. What we’re seeing is less of an either/or situation and more of a hybrid balance. So, 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.
Q4. How do you see Tier-2 and Tier-3 cities emerging as the next growth engines for Indian real estate?
Tier-2 and Tier-3 cities are increasingly becoming the next growth engines for Indian real estate. Several factors are driving this shift, improved connectivity, government focus on infrastructure, and the spread of digital services that reduce dependence on metros. These cities are witnessing a surge in demand for quality housing, organised retail, and modern office spaces, fuelled 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. At the same time, lower land costs and supportive state policies make developments more viable. 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.
Q5. Cities like Gurgaon have grown rapidly but face serious quality-of-life challenges. What lessons do you draw from that?
The growth of cities like Gurgaon shows both the promise and pitfalls of rapid urbanisation. While it has become a major business hub, the strain on infrastructure, traffic, and basic services highlights the risks of expanding without long-term planning. The lesson is clear real estate must develop alongside sustainable infrastructure, not in isolation. 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 quality of life for residents.
Q6. What opportunities do integrated townships and infrastructure projects present for upcoming markets?
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.
Q7. How are changing aspirations of homebuyers and the interest of NRIs and HNIs shaping real-estate demand in smaller 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 was the main reason Jamshri transitioned from textiles to real estate?
Jamshri transitioned from textiles to real estate due to changing market dynamics and the need to create sustainable value for stakeholders. The company saw stronger long-term potential in the real estate sector.
What are the two key focus areas for Jamshri's real estate growth?
Jamshri's real estate growth is focused on integrated mixed-use development and adaptive reuse of existing structures. These priorities ensure projects are commercially sustainable and add long-term value to communities.
How is the work-from-home trend affecting real estate development?
The work-from-home trend is leading to the design of more adaptable spaces that support both professional and personal needs, redefining the role of offices as collaborative hubs.
What factors are driving the growth of real estate in Tier-2 and Tier-3 cities?
The growth in Tier-2 and Tier-3 cities is driven by improved connectivity, government focus on infrastructure, and the spread of digital services. These factors are reducing dependence on metros and increasing demand for quality housing and modern office spaces.
What lessons can be learned from the rapid growth of cities like Gurgaon?
The rapid growth of cities like Gurgaon highlights the importance of developing real estate alongside sustainable infrastructure to avoid issues such as strained services and traffic congestion.
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