Why Celebrities Investing in Tier II Cities, Future Proofing Their Wealth

New Delhi, May 23, 2025: Real estate is rapidly expanding its footprint, and with the prospects of higher returns, celebrities and wealthy buyers are investing in places you wouldn’t expect.

Suddenly, sprawling villas in Jaipur, high-tech smart homes in Lucknow and luxury farmhouses near Chandigarh are increasingly generating interest among the segment they are not easily associated with.

Last year’s numbers speak about this dramatic shift. While property markets in major metros showed sluggish growth, 15 smaller cities saw an increased traction in luxury home sales.

As a result, ultra-high-end properties worth over INR 2 crore saw demand jump by a whopping 73 per cent. Jaipur even outsold Gurugram in the INR 1-2 crore category.

“Five years ago, there were few buyers for luxury properties in tier 2 and 3 cities. Today, those same properties are selling like hotcakes among industrialists and even Bollywood celebrities,” says Umang Jindal, CEO, Homeland Group.

“The math just makes sense—why pay Mumbai prices when you can get twice the space and better amenities elsewhere? Moreover, the relative return on investment would also be high.”

This growing trend is being fuelled by a number of factors, beginning with what many call the ‘great metro escape’.

As one industry expert puts it, “Pollution, insane traffic and ridiculous property prices are pushing people out. The prices have also skyrocketed. This has not only pushed the buyer’s budget but also led to a relatively low return on investment. So, investing in two or three properties at the price of one in a metro city makes greater sense.”

Another key driver behind the surge in tier 2 city investment is the ongoing infrastructure revolution.

Expanding expressways, improved rail and air connectivity and proximity to major metros have significantly enhanced the appeal of these cities.

Reputed developers are launching high-quality projects, further elevating their status. Regulatory reforms like RERA have also boosted buyer confidence, ensuring transparency and accountability in the market. When combined with higher potential returns on investment, these factors have decisively shifted the balance in favour of smaller cities.

“The work-from-home revolution has changed everything too. Wealthy buyers now care more about the quality of life,” says Manit Sethi, Director, Excentia Infra.

“Besides, emotional factors also have a role to play. As India’s economy grows and there is an increase in the number of wealthy individuals, the real estate in tier 2 cities is increasingly witnessing their participation.”

Sakshee Katiyal, Chairperson, Home & Soul, adds, “Investors see tier 2 and 3 cities, especially in industrial corridors, as key drivers of India’s future economic and real estate growth. Enhanced infrastructure, industrial expansion, affordable spaces and rising employment make them attractive investment hubs.”

She adds, “Major corporations are also investing in offices, warehouses, retail and co-working spaces. Government initiatives like ‘Make in India’ further boost infrastructure and manufacturing incentives, strengthening their growth potential.”

Piyush Kansal, Executive Director, Royale Estate Group Luxury, notes, “Today is more than just premium fittings; it’s about space, peace and purpose.”

“Many NRIs are seeing their hometowns in a new light. The blend of emotional belonging and practical advantages is too compelling to ignore. We’re witnessing consistent interest from professionals who want a meaningful footprint in India without compromising lifestyle.”

The financial logic is clear. Land in these cities costs 40-60 per cent less than in metros, allowing developers to offer luxurious amenities at reasonable prices.

The rules of the game have changed.

Today’s buyers want space, clean air and meaningful experiences—things the metros are fast running out of. With all signs pointing to continued growth in 2025, the luxury real estate map is being redrawn.

The smart money? It’s following the stars—not just metaphorically but literally—to these unexpected new hubs.