Tricity’s Growth Story: Why Investors are Shifting Focus to Tier II Hubs

By Udit Jain

New Delhi, October 26, 2025: India’s Tier II and III cities are emerging as new growth hubs, attracting both homebuyers and real estate developers looking for better opportunities beyond saturated metro markets. The rising appeal of these cities stems from their affordability, improved infrastructure, and evolving urban lifestyles. With skyrocketing property prices in metropolitan areas, buyers are increasingly drawn to the spacious and cost-effective housing options available in these emerging regions.

No longer seen as secondary or fallback markets, these hubs are emerging as dynamic center for real estate, commercial, and retail activity. What draws investors here is a compelling mix of fundamentals: properties that offer value without compromise, infrastructure that supports growth, and a lifestyle quotient that rivals larger metros.

According to Magicbricks, India’s real estate investment landscape is undergoing a shift, as Tier II cities are outperforming their Tier-I counterparts in terms of capital appreciation. The report shows the average capital appreciation across Tier II cities stands at 17.6 per cent, outpacing the national capital’s 11.10 per cent.

Meanwhile, as per PropEquity, the Value of homes sold in India’s top 15 Tier II cities has increased by 6 per cent to INR 40,443 crore in Q1 2025, as against INR 38,102 crore in the same period last year.

Building on this momentum, the Tricity region, comprising Chandigarh, Mohali, and Panchkula, stands out as a quintessential example of this new Tier II appeal. Each city brings a distinct strength: Chandigarh offers meticulously planned urban spaces and a legacy of civic design; Mohali is rapidly evolving into a commercial and IT hub; while Panchkula adds a serene, residential charm with seamless connectivity to its neighbors. Together, they form a cohesive ecosystem where work, leisure, and lifestyle converge, creating an environment that is both aspirational and grounded.

What makes the Tricity region particularly compelling is its strategic connectivity. Just a few hours from Delhi NCR, and well-linked through national highways, railways, and the Chandigarh airport, the region offers seamless access without the congestion and cost pressures of larger metros. Mohali’s emerging IT and commercial corridors are drawing corporates, startups, and skilled talent, turning the city into a thriving employment hub. For investors, this ease of movement and access not only enhances the appeal of residential and commercial properties but also reduces perceived risks, making Tricity a market where growth potential and practicality walk hand in hand.

According to ANAROCK’s recent Consumer Sentiment Survey, 26 per cent of property investors are now favoring Tier II and III cities, highlighting a shift in real estate investment trends. Factors such as a burgeoning population, swift urbanization, and enhanced infrastructure are drawing not only new residents but also developers keen to explore the vast opportunities these cities present.

Further, infrastructure has been the quiet engine powering Tricity’s rise as an investment hotspot. From well-planned roads, flyovers, and expressways that seamlessly connect Chandigarh, Mohali, and Panchkula, to the rapid development of IT parks, commercial hubs, and SEZs, the region is shaping itself into a modern urban ecosystem.

Beyond connectivity and infrastructure, Tricity’s appeal increasingly lies in the lifestyle and amenities it offers. Premium housing projects, with integrated townships, clubhouses, and community-centric designs, cater to these expectations while also promising strong long-term rental and resale value, attracting HNIs and NRIs. This lifestyle evolution is mirrored in the commercial and retail landscape: malls, co-working hubs, and branded retail spaces are springing up across Mohali and Chandigarh, drawing national and international brands. For investors, this combination of residential desirability and commercial momentum translates into tangible returns and a confident outlook for the region’s growth.

Additionally, Smart City initiatives are improving Tricity’s infrastructure with better roads, drainage, public transport, and digital connectivity, enhancing the overall quality of life. With world-class infrastructure taking shape, luxury homebuyers are increasingly drawn to these emerging hubs for their convenience and superior livability.

Adding to its investment allure, Tricity is witnessing a steady influx of young professionals, IT employees, and students, creating a dynamic and aspirational urban population. This growing talent pool fuels demand across residential, retail, and office spaces, while also shaping the city’s culture and lifestyle.

Therefore, Tricity’s evolution from a supportive satellite to a self-sustaining investment hub marks a defining chapter in India’s Tier II growth story. Its strength lies in the rare balance it offers—world-class connectivity, an elevated lifestyle, and yet, the accessibility and affordability that larger metros often lack. For investors, the shift toward Tricity and similar Tier II hubs is not a pursuit of quick returns, but a confident bet on long-term value creation—on cities that are quietly, but decisively, shaping the future of India’s urban narrative.

The author is Director, ONE Group

DISCLAIMER: The views expressed in the above piece are personal and solely those of the writer. They do not necessarily reflect Realty & More’s views.