Why emerging cities offer more value for homebuyers in India

Ayushi Ashar

The towering skylines and fast-paced life of metros like Mumbai, Delhi, and Bengaluru is driving new-age homebuyers more towards emerging cities. Given the rising property prices, congestion, and lifestyle challenges in metros, Tier-II/III cities are offering better affordability, improved infrastructure, and a promising investment potential. This shift is reshaping homebuying trends, making emerging cities a smarter choice for those seeking value, quality of life, and long-term growth opportunities.

Growing real estate markets

One of the biggest advantages of investing in emerging cities is affordability. While real estate in metro cities often comes with steep price tags, cities like Ahmedabad, Indore, Jaipur, Kochi, and expanding areas of Mumbai—such as Navi Mumbai and Thane—offer homes at more competitive prices. This affordability makes homeownership accessible to a broader segment of buyers, from young professionals to middle-class families. Additionally, lower land costs in these cities allow developers to offer spacious homes with better amenities at attractive rates.

Higher return on investment

For both homebuyers and investors, property appreciation is a crucial factor. Emerging cities have demonstrated strong growth potential due to increasing demand, rapid urbanisation, and government initiatives. Locations such as Thane in Maharashtra, Surat in Gujarat and Nashik in Maharashtra have experienced a steady rise in property values, driven by infrastructural development, economic expansion, and growing job opportunities.

Expanding infrastructure and connectivity

Governments and private stakeholders are making significant investments in infrastructure projects across emerging cities. Enhanced road networks, metro expansions, smart city initiatives, and upgraded public transport systems are improving livability and accessibility.

For example, the upcoming Navi Mumbai International Airport (NMIA), set to commence operations this year, is expected to unlock vast residential and commercial potential in surrounding areas. The Mumbai Trans Harbour Link (MTHL) will further enhance connectivity between South Mumbai and Navi Mumbai, driving real estate demand. Metro expansions such as Line 4 (Wadala-Ghatkopar-Thane) and Line 5 (Thane-Bhiwandi-Kalyan) will improve intra-city travel, making micro markets like Thane and Navi Mumbai an increasingly attractive destination for homebuyers looking for spacious, well-equipped homes at competitive prices. Developers are aligning their projects to match these expectations, ensuring that buyers receive high-quality living spaces with premium amenities.

New job markets & economic growth

The rise of IT parks, business hubs, and manufacturing zones in emerging cities generates employment opportunities and reduces migration to metros. Cities like Chandigarh, Bhubaneswar, and Surat are witnessing increased corporate investments, particularly in the IT, fintech, pharmaceutical, and textile sectors. Additionally, cities such as Navi Mumbai, Coimbatore, and Visakhapatnam are becoming attractive for businesses due to improved infrastructure, lower operational costs, and government incentives. These developments boost local economies and drive real estate demand, making these cities ideal destinations for homebuyers seeking affordability with long-term growth potential.

Better quality of life

Emerging cities often provide a superior standard of living compared to metros. With lower pollution levels, reduced number of plying vehicles, and increased green spaces, these cities offer a healthier and more relaxed lifestyle. Social infrastructure—including schools, hospitals, shopping centres, and entertainment hubs are also rapidly improving, making these cities attractive destinations for families. Additionally, cities like Navi Mumbai, Jaipur, Lucknow, and Coimbatore are developing smart city initiatives, enhancing urban planning, sustainability, and digital connectivity. The availability of spacious homes at relatively lower prices further enhances the appeal, offering homebuyers a perfect balance between affordability and an improved quality of life.

As India’s real estate market evolves, homebuyers and investors are increasingly recognising the value of emerging cities. With affordable housing, strong investment potential, expanding infrastructure, and a better quality of life, these cities are becoming the preferred choice over congested metros. For those looking to invest in real estate or find their dream home, emerging cities offer a lucrative and sustainable option for the future.

(The author is Director of Ashar Group and Managing Committee Member at MCHI-CREDAI)