Exclusive Amenities in Tier 2 and 3 Cities: The New Face of Luxury Living 

By Manit Sethi, Director, Excentia Infra

As Tier 2 and 3 cities are increasingly embracing luxury living, India’s real estate landscape is witnessing a tectonic shift. Traditionally known for their affordability, these cities are now attracting affluent buyers looking for high-end properties. Keeping in mind the recent report by CREDAI and Colliers, according to which the Indian real estate market is poised to grow to $10 trillion by 2047, developers are proactively rising to the occasion to meet the demand and incorporating exclusive amenities previously seen only in metros.

A New Era for Tier 2 and 3 Cities

The growth of these cities is no longer driven by affordability alone. Factors such as increasing disposable income, reverse migration, and better infrastructure have accelerated demand for luxury homes. This allows developers to offer expansive homes with features like smart home automation, concierge services, and private recreational spaces. As highlighted in the CREDAI and Colliers report, the real estate sector’s contribution to India’s GDP is expected to rise from 6-8% to 14-20% by 2047, further fueling this shift.

The Rise of Ultra-Luxury Homes

Recent data from Anarock reveals that ultra-luxury home sales have soared in 2024. Across major cities, 25 homes priced above Rs 40 crore were sold in the first eight months of the year, with a combined sales value of Rs 2,443 crore. Gurugram, in the National Capital Region (NCR), recorded the sale of a home for Rs 95 crore, while Mumbai led the ultra-luxury segment with 21 homes sold, amounting to Rs 2,200 crore.

Iconic, Tech-Driven and Wellness-Focused Living

Apart from iconic and aspirational designs, technology has become an integral part of luxury living, and developers in smaller cities are no exception. Smart home systems, where residents can control lighting, security, and appliances through smartphones or voice-activated devices, are becoming increasingly popular. Moreover, the wellness trend that gained momentum post-pandemic is evident in these developments. Properties now boast private gyms, yoga studios, and wellness centres, offering residents an all-encompassing lifestyle experience.

Apart from prioritising sustainability, security has also emerged as a top concern for luxury buyers. Gated communities with advanced surveillance systems, biometric access, and round-the-clock security are now expected in high-end properties, offering residents a sense of safety and exclusivity.

From an investment standpoint, Tier 2 and 3 cities offer significant potential. Property prices remain lower than in metros, allowing for better returns on investment as these cities continue to grow. As infrastructure projects such as new highways, airports, and metro systems expand into these regions, property values are expected to rise, offering an attractive proposition for investors.

With more buyers seeking high-end properties outside traditional metro hubs, Tier 2 and 3 cities are fast becoming centres of modern, tech-driven, and wellness-focused luxury living. As the Indian real estate market continues its upward trajectory, driven by factors like technological integration, sustainability, and growing affluence, Tier 2 and 3 cities are set to play a central role in the future of luxury housing. The face of luxury living in India is changing, and it’s moving beyond the metros.