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Tier-II Cities and Peripheries Drive India’s Real Estate Surge
Real estate means land and buildings.
In India, smaller cities and areas near big cities are attracting much more real estate activity.
The amount of land bought and sold increased greatly between 2021 and early 2026.
Tier-II cities accounted for most new land transactions in the first quarter of 2026.
New roads, rail systems, airports and other infrastructure are making these places easier to reach.
Better connections are encouraging homes, factories, warehouses, offices and data centres to open there.
Many buyers are also interested in residential plots because they believe land may become more valuable as cities grow.
Experts say that growth is spreading beyond crowded and expensive metropolitan city centres.
India’s land market recorded 18,158 acres across more than 880 deals in 33 cities between 2021 and Q1 2026.
Annual transacted acreage rose from 813 acres in 2021 to 6,181 acres in 2025, while 1,194 acres were transacted in Q1 2026.
Tier-II cities’ share of annual land transactions increased from about 2% in 2021 to 34% in 2025 and reached 67% in Q1 2026.
Infrastructure spending on highways, expressways, metro networks, rapid rail and airports is expanding real estate activity beyond major metropolitan areas.
Developers launched nearly 4.7 lakh residential plots across the top 10 Tier-I and Tier-II cities between 2022 and May 2025, with Tier-II cities supplying 52%.
- Who
- Developers, investors, homebuyers and companies involved in India’s real estate market.
- What
- Land transactions and real estate activity are surging in Tier-II cities and city peripheries across multiple property sectors.
- Where
- Across India, including Tier-II cities and the peripheral areas of major metropolitan markets.
- When
- The reported land-market period runs from 2021 through Q1 2026; residential plot launches covered 2022 through May 2025.
- Why
- Improved infrastructure, expanding employment and manufacturing activity, lower entry prices and congestion in established city centres are shifting demand outward.
Key facts
- Land transacted
- 18,158 acres across more than 880 deals in 33 cities between 2021 and Q1 2026
- 2025 transactions
- 6,181 acres were transacted during 2025
- Q1 2026 transactions
- 1,194 acres were transacted in the first quarter of 2026
- Tier-II share
- Tier-II cities accounted for 34% of annual transactions in 2025 and 67% in Q1 2026
- Infrastructure spending
- Central Government public capital expenditure on core infrastructure is estimated at ₹51.72 lakh crore for FY23-FY27
- Residential plots
- Nearly 4.7 lakh plots were launched across the top 10 Tier-I and Tier-II cities between 2022 and May 2025
- Tier-II plot supply
- The top seven Tier-II cities supplied 2.43 lakh plots, or 52% of the total
Quotes
Mukesh Choudhary
Managing Director of Accuspace
“As companies diversify their supply chains, India offers both scale and a growing ecosystem of manufacturing, logistics and industrial infrastructure, making it an increasingly attractive destination for long-term investment.”
republicworld.com
“Rising land transactions, improving infrastructure connectivity and relatively attractive entry prices are encouraging both investors and end-users to look beyond established urban centres.”
republicworld.com
Sources
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