Tier-2 & Tier-3 Cities: The Next Growth Engines for Real Estate
Jamshri Realty Ltd, a trusted name in Indian industry, discusses the transition from textiles to real estate and the potential of Tier-2 and Tier-3 cities as the next growth engines.
Real EstateTier2 CitiesTier3 CitiesIntegrated TownshipsUrbanisationReal Estate NewsOct 07, 2025
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.
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.
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.
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.
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 was Jamshri’s original industry, and why did it transition to real estate?
Jamshri originally began in textiles but transitioned to real estate in 2018 due to changing market dynamics and the need to create sustainable value for stakeholders. The move leveraged Jamshri’s prime land assets and aligned with India’s rapid urbanisation and infrastructure growth.
What are the 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 commercially sustainable projects that add character and long-term relevance to the communities they serve.
How is the hybrid work model impacting real estate design?
The hybrid work model is leading to the design of more adaptable spaces that support both professional and personal needs. Offices are evolving into collaborative hubs, while homes or co-working spaces are becoming extensions for focused tasks.
What factors are driving the growth of Tier-2 and Tier-3 cities in real estate?
Several factors are driving the growth of Tier-2 and Tier-3 cities, including improved connectivity, government focus on infrastructure, and the spread of digital services. 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.
What lessons can be learned from the rapid growth of cities like Gurgaon?
The rapid growth of cities like Gurgaon highlights the risks of expanding without long-term planning, such as strain on infrastructure, traffic, and basic services. Real estate must develop alongside sustainable infrastructure to ensure that urban development supports economic progress and enhances quality of life for residents.
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