Tier-2 and Tier-3 cities emerge as hotspots for NRI luxury real estate investments
In a significant shift driven by both emotion and strategy, Non-Resident Indians (NRIs) are increasingly investing in luxury real estate across India’s Tier-2 and Tier-3 cities. This growing trend underscores their desire to reconnect with their roots while securing long-term, high-value assets in cleaner, better-planned environments, reported business-standard.com.
Smaller Indian cities are rapidly emerging as premium lifestyle hubs attracting the Indian diaspora.
Cities such as Mohali, Lucknow, Coimbatore, and Indore have quietly evolved into vibrant centers offering cosmopolitan living, modern infrastructure, and superior connectivity. These factors, combined with a strong emotional pull and global-standard amenities, are making them a prime choice for NRIs seeking homes that mirror international quality and values.
“NRIs are no longer limiting their focus to metros, they want larger, well-designed homes that offer privacy, wellness, and a peaceful lifestyle. These cities strike the right balance between affordability and elevated living,” Umang Jindal, CEO of Homeland Group, was quoted as saying in the report.
Luxury now means space, sustainability, and emotional belonging, say experts
According to Prateek Mittal, Executive Director, Sushma Group, “There’s a fundamental shift in how NRIs view luxury. Open layouts, eco-conscious design, top-tier security, and access to natural amenities like golf courses are now high on their checklist.” As metro congestion worsens, the relative calm of smaller cities becomes more appealing.
The pandemic, too, has reshaped global lifestyle priorities. NRIs now value space and wellness more than ever. “Luxury is no longer about flashy interiors. It’s about space, peace, and a sense of purpose,” notes Piyush Kansal, Executive Director, Royale Estate Group. “People want to come back not just for nostalgia but for meaningful living.”
Developers are swiftly aligning their offerings with NRI expectations—offering digital transactions, flexible payment plans, and post-possession support. “The NRI interest is transforming the sector,” says Adish Oswal, Chairman, Oswal Group. “They want integrated ecosystems, not just homes, and Tier-2 and Tier-3 cities are stepping up with world-class infrastructure.”
The rise of luxury homes in smaller Indian cities is more than a trend—it’s a lifestyle revolution led by returning global citizens.
With India’s growth narrative stretching far beyond metros, Tier-2 and Tier-3 cities are setting a new benchmark for NRI real estate investment. For many in the diaspora, these cities now represent the perfect blend of heritage, lifestyle, and strategic long-term value.
