Not sure if investing in a home in a tier-II city is correct for you?
Moving on from metros and Tier-I cities, real estate investors and finding value in putting their money in Tier-II cities such as Lucknow as well. Buying property in these cities is a great way to invest at affordable rates while enjoying a relatively high rental yield in comparison to bigger cities.
Here are a few other reasons you must consider investing in a tier II city.
Fast Infrastructural Growth
One of the key drivers of many states in India is infrastructural development. The Metro Rail project that is being implemented in cities such as Ahmedabad, Lucknow, Jaipur and Kochi is slated to significantly improve connectivity within the city as well as with the rest of the nation. With enhanced connectivity to close by metro cities, there is definitely a peeked interest among investors looking to buy property.
Improvement in Employment Options
With infrastructural development, comes the growth of commercial activities. This makes the residential as well as commercial property market quite exciting in these cities. With more businesses setting up shop in such cities, there is an expected growth in financial strength of the locals. As more talent chooses to move in or stay back in tier-II cities, more people are looking for residential flats today than ever.
From a business perspective, setting up an office in tier-II cities tends to be cheaper with regards to operational costs, rent, utility, etc. making it a win-win for everyone involved. Investors too find this scenario to be ideal since earning rental returns on their investment becomes a viable option.
Extremely Affordable Market
When compared to metro cities, living in a quintessential 2BHK residential flat in Lucknow is a lot cheaper than living in an equivalent apartment in a bigger city. Today, cities such as Lucknow, Pune, Jaipur, Mysore and Coimbatore are considered to be the most value-for-money markets to purchase a home in.
Affordable Cost of Living
This brings us to our next point. Over and above earning a rental income or finding an apartment that has the potential to appreciate in value the most, for home buyers who intend to use the real estate they purchase, smaller cities tend to be a lot less expensive to live in. Apart from affordable rent and utilities, one is also benefit from cheaper healthcare facilities, schooling and everything else one would expect from an urban city. Furthermore, there is a benefit of living in a cleaner, safer environment that is especially valued by families with the elderly and children.
A Lifestyle that Lives up to Larger Metro Cities
Today moving to a city like Lucknow or Jaipur doesn’t hold you back from enjoying the ways of life followed by those in bigger metros. Today’s tier-II cities are home to large malls that house premium and luxury retail brands from all over the world. In addition to this, they are also home to the best restaurants and night life allowing you to enjoy everything that one would in a bigger city anywhere in India.
With low property costs, the government’s focus on building smart cities and the lower cost of living, considering investing in a property in a city like Lucknow can truly pay off in a few years.
