Branded residences in India are on an upsurge , attaining the market size of INR 27000 crores. Majorily, branded residences are in Tier 1 metro cities, with Delhi-NCR having the lion share of 54%.But of late, branded residences are gaining ground in Tier 2 cities, boosted by strong infrastructure development, improved connectivity, growing job opportunities , besides rising tourism potential of many of these cities.
According to a latest report by Skye Hospitality and 360 Realtors, leading Tier cities of Panjim, Shimla, Kochi, Indore, Chandigarh, Jaipur, Ahmedabad, Lucknow, Ludhiana and Bhopal have established themselves as sought-after destinations of branded residences. Torbit Realty presents the top 10 Tier 2 branded residence destinations.
1 Panjim
Located at the crossroads of Zuari and Mandovi river, this capital city of Goa, is dotted with premium restobars, sleek cafes , casinos and swanky villas and apartments. Known for its picturesque beaches, baroque Portuguese architecture, scenic natural reserves, tranquil Konkan backyards attracts many HNIs from all over India for owning a property or a villa here as a lifestyle upgrade. Panjim , with air connectivity through Dabolim and MOPA airports ,has seen exponential growth in tourism, hotels, infrastructure, second homes, and real estate in the past few decades. Consequently, second homes market in Goa is booming, backed by growing volume of tech entrepreneurs, business owners, corporate honchos etc.with property prices skyrocketing in the past few years. The average H1 2024 prices have soared to INR 14500 psf against INR 11200 in H1 21 whereas premium prices have shot up from INR 17100 psf to INR 26600 in H1 2024.
2 Shimla.
Situated in the foothills of Himalayas, north east of Chandigarh, Shimla is one of the most popular hill stations and tourist destinations in North India, besides being the capital of the state of Himachal Pradesh .. With two other key tourist destinations of Kasauli and Solan in close proximity , adds to the appeal of Shimla.This popular tourist destination popularly known as the Queen of Hills, besides housing close to 6500 hotels including top hospitality chains , is an educational hub with many well known boarding schools. Shimla’s average residential property prices have gone up from INR 5715 psf in H1 21 to INR 9370 in H124. The premium property prices jumped from INR 7860 psf in H121 to INR 12980 in H124. A 1400 crore upcoming township near Shimla and a Rs 1700 crore ropeway project will further enhance Shimla’s appeal as a premier second home destination for branded residences.
3 Kochi
Blessed with pristine sea beaches, hilly terrains, eco-reserves, tranquil country sides, beautiful temples, churches, synagogues, and archaeological sites, the port city of Kochi is a hot tourist destination (particularly wellness tourism), besides being the epicentre of trade and commerce. Average residential property prices have climbed to INR 5850 psf in H124, up from INR 4350 psf in H121. The premium property prices have risen from INR 5450 psf in H121 to INR 8250 psf in H124. Kochi is set for a big infra push with upcoming Global Industrial Finance Tech City, besides expansion of Kochi Airport at the cost of Rs 700 crore and phase 2 expansion of Kochi Metro. This will not just further enhance tourist appeal of Kochi but will also serve as a booster for branded residence market here..
4 Indore
One of the fastest growing economic & commercial centres in central India, Indore is home to textile industry, automobile industry , agri business, banking and financial institutions and an automobile hub in the neighbourhood .Like other fast-growing Tier-2 cities in India, Indore is also investing aggressively in IT, ITeS, and communication industries, with dedicated IT and hardware parks . Consequently, the city has emerged as a very fast-growing property market. There is strong visible appetite for Indore’s property market from various quarters- local buyers, outsiders, and NRIs.Due to this average residential property prices have risen from INR 3290 psf in FY21 to INR 4640 in FY24. Premium property prices have shot up to INR 6250 psf in H124 , up from INR 3824 in FY 21. Further infra upgrade by way of an upcoming Rs 12000 crore railway corridor, metro rail and an airport corridor will serve as a booster to entertainment, retail and shopping malls.
5 Chandigarh
Known as the pensioners’ paradise, the well- planned beautiful city of Chandigarh on the foothills of Shivalik mountains is dotted with parks, lakes and eco-reserves, providing it a tranquil environment. It ranks number one in terms of HDI (Human Development Index) and is also one of the top-most cities in terms of family wealth. The hill stations of Kasauli, Solan, and Shimla being located at an approachable distance, add to its appeal for tourism and hospitality. Average residential property prices have shot up from INR 4270 psf in H121 to INR 6800 in H124 while premium property prices have gone up from INR 7280 psf in H121 to INR 12270 psf in H124. The upcoming Rs 20000 crore Metro project in the twin cities of Chandigarh and P-7 Road connecting airport, Zirakpur and Mohali will provide infra boost to real estate, retail and hospitality .
6 Jaipur
The city of Jaipur , now an integral part of the DMIC, is today a bustling ground for tourism, trade, and commerce, with a wide range of industries such as handicrafts, pottery, ceramics, auto parts, machineries, paper, cement, etc. Being a prominent hub of IT, especially BPO services, it houses Mahindra World City spread across 750 acres . Jaipur’s tourist, industrial and IT potential is propelling real estate in the Pink city . Average residential property prices have jumped from INR 3090 in H121 to INR 4230 in H124. The premium property prices have soared to INR 6675 in Hi24, up from INR 5240 in FY21. And now with connectivity to Delhi-Mumbai Industrial Corridor and proposed infra boost by way of an HiTec City second phase of Metro at the cost of Rs 9500 crores and the second phase of the ring road connecting NH8 with NH 11 (Jaipur-Bikaner)) Jaipur’s branded residential market is set for a greater boost ..
7 Ahmedabad
Capital of Gujarat, Ahmedabad is one of the biggest hubs of trade, commerce, entrepreneurship, and retail in Western India after Mumbai. Proximity to ports, availability of skilled workforce, favourable policies, and a general entrepreneur culture has enabled Ahmedabad to become an economic powerhouse. Apart from pharma, Ahmedabad is also a thriving centre for other industries such as IT/ITeS, textile, green energy, etc. The city which has a distinct advantage of being situated in the middle of DMIC , is also benefitted by globally acclaimed GIFT City nearby. The boost to finance and fintech landscape is bolstering real estate market including branded residence market. This is clearly evident from average residential property prices soaring from INR 3180 in FY21, to INR 4150 in FY24. Premium property prices have risen from INR 6275 in FY21 to INR 7770 in FY24. Now, this will get a further boost with upcoming Dholera Industrial City, a 109 km expressway between Ahmedabad and Dholera, expansion of airport and expansion of metro from Ahmedabad to Gandhi Nagar.
8 Lucknow
The capital city of Uttar Pradesh , is one of its biggest economic centres after Noida. The overall size of Lucknow’s economy is close to INR 90,000 crores, contributing 3.9% of UP’s GDP size. Lucknow connected to Delhi via the Lucknow Expressway & Yamuna Expressway, is seamlessly linked to eastern parts of UP through the Purvanchal Expressway.Lucknow is emerging as a major node for IT, technology, and defence production. Average property prices here have risen from INR 4783 in H121 to INR 5938 in H124.Premium property prices have shot up to INR 7150 psf in H124, up from !NR 5750 in H121. A new IT corridor is being developed in Lucknow, following an investment of INR 1500 crores. An upcoming Rs 7500 crore green expressway connecting eastern and western parts of the city besides 104 km long outer ring road, development of business parks at the cost of Rs 2500 crores and second metro line , will provide further impetus to real estate.
9 Ludhiana
. As one of the most industrialized cities in Punjab, Ludhiana is a key hub for a wide range of industries such as auto parts, bicycle, hosieries, textiles, home appliances, woollen wears , hardware paints, food processing . Due to entrepreneurial culture, Ludhiana has a vast concentration of HNIs, mostly business owners and investors. As such,despite being a non- metro, Ludhiana has insatiable appetite for luxury retail, lifestyle goods and premium real estate. New hotels, resorts, malls and luxury homes including branded residences are coming up to meet market demand. All this has seen average property prices rising from INR 3780 psf in H121 to INR 5830 in FY24. Premium properties have seen prices going up from INR 5250 psf in FY21 to INR 7620 in FY24.The operationalisation of new international airport in 2025 and Rs 900 crore Southern Ludhiana bypass road will prove to be new growth drivers for real estate.
10 Bhopal
A bustling city in central India, Bhopal is known for its royal heritage, picturesque lakes, and exotic flora & fauna, besides being a leading educational hub with 29 universities and over 300 operational colleges .Bhopal offers a relatively peaceful and high-quality living with malls, parks, lakes, commercial offices with good connectivity, commercial offices. Bhopal is seeing influx of new manufacturing units, IT companies, BFSI ventures, etc.Average property prices have risen from INR 2470 in FY21 to INR 3150 in FY24. Premium property prices have gone up to INR 5250 psf in FY24, from INR 4090 in FY21. With the spotlight on infrastructure development by way of upcoming Rs 8000 crore metro, a new 40 km long bypass road at the cost of Rs 2900 crores and the expansion of airport will further fuel residential real estate.
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