What Tier-2 Homebuyers Should Look For Before Booking

Ms. Amrita Gupta, Director, Manglam Group and CEO, Manglam Spa & Resorts Pvt. Ltd.

A festive discount can make a home appear more affordable, but the real test of a good purchase begins after the offer expires. For a family committing a substantial part of its savings to a home, the decision must rest on more than a reduced booking amount or a limited-period incentive. It must make sense financially, serve their needs over time and offer confidence in what they are buying.

The stakes are especially interesting in Tier-2 cities. As infrastructure improves and economic activity expands, homebuyers in these markets are looking for better homes, stronger amenities and a more considered quality of life. Yet, rising aspirations must be balanced with affordability. The opportunity is to make a sound purchase at the right value, rather than allow the excitement of the festive season to dictate the decision.

Look beyond the offer to the actual price

A discount is meaningful only when the final price is justified by the property’s location, construction quality and specifications. Buyers should examine the complete cost, including applicable charges, registration expenses and future maintenance, rather than focus only on the booking amount. Payment plans also deserve scrutiny: a lower initial outlay may simply defer a larger financial commitment.

The more important question is whether the property makes sense without the festive incentive. A sound purchase should be supported by a fair price, a credible developer and a home that meets the buyer’s needs. An offer can improve the terms of a good decision, but it cannot compensate for weaknesses in the property itself.

Read the city, not just the project brochure

Tier-2 markets are no longer simply more affordable alternatives to the metros. A CII-Knight Frank India report found that residential prices across 11 emerging markets, including Jaipur, rose by 63% between 2021 and 2026, compared with 42% across the top eight cities. The figures reflect the growing significance of these markets, but price appreciation alone should never be the basis for a homebuying decision.

For a homebuyer, the more useful assessment is whether a locality is supported by employment, reliable connectivity and the social infrastructure needed for everyday life. Schools, healthcare, public transport and access to workplaces can make a greater difference to long-term liveability than a proposed infrastructure project whose delivery remains uncertain.

Jaipur illustrates how a city’s prospects can draw strength from several sectors, including tourism, hospitality, retail and services. Yet, a city’s overall growth story does not make every location equally attractive. Buyers must understand the immediate neighbourhood, the infrastructure already in place and the development planned around it.

Judge the home beyond its amenities

A long list of amenities can make a project attractive on paper, but the quality of everyday living depends on more fundamental decisions. Construction standards, functional layouts, natural light, ventilation, open spaces and the management of common areas all influence how a home performs over time. The developer’s delivery record, RERA registration, relevant approvals and contractual possession terms deserve the same attention as the price.
Sustainability is also a practical consideration, not merely an additional feature. Water management, energy efficiency, climate-responsive design and thoughtful landscaping can influence comfort and running costs for years. These are the qualities that continue to matter long after a festive offer has expired.

Choose with clarity, not urgency

The festive season can be a good time to buy, provided the decision is guided by careful evaluation rather than the fear of missing an offer. Tier-2 homebuyers have an opportunity to benefit from their cities’ growth while making choices that reflect their own financial capacity and aspirations. That requires looking beyond the promise of future appreciation and asking whether the home is right for them today.

A well-considered purchase brings together a credible developer, a suitable location, sound construction and a price that the buyer can sustain. Offers may make a booking more attractive, but genuine value lies in the quality of the decision itself. The strongest buying decisions are made when the numbers add up, the fundamentals are sound and the home continues to make sense long after the festive season has passed.

Overseas Property Lures Homebuyers

As the festive season heralds, home buyers are increasingly looking to invest in overseas properties to leverage the twin benefits of good capital appreciation and rental yield, besides portfolio diversification and residency opportunities. 

According to a joint survey by Knight Frank India and IREX, almost three fifth  of prospective home buyers intend to buy overseas property for rental income and capital appreciation, highlighting the importance of investment returns in international residential property decisions. Resident Indian overseas property preferences span the Middle East, Europe, Asia-Pacific and North America. The UAE, Greece, Thailand, Portugal, Australia, the United States, the United Kingdom, Bali (Indonesia), Canada and Malaysia feature among respondents’ choices.

 The report- ‘Keys Beyond Borders’ indicate that overseas property is increasingly being considered alongside domestic real estate as part of a broader wealth strategy. Rental income and capital appreciation remain the primary intended use for prospective acquisitions. Buyers also consider residency opportunities, portfolio diversification, lifestyle preferences and other long-term financial and personal objectives.

Shishir Baijal, International Partner, Chairman and Managing Director, Knight Frank India, said, “Overseas residential property is increasingly being considered as part of a broader wealth and investment strategy by Indian buyers. While rental income and capital appreciation remain important considerations, destination choices are also shaped by residency opportunities, lifestyle preferences and the need to diversify assets across markets”. 

Real estate accounts for an average of 45% of total wealth allocation, comprising 32% in domestic property and 13% in overseas property. The allocation to overseas real estate has increased from approximately 5% a decade ago, indicating its growing share in respondents’ investment portfolios.

 Buyers, according to Lavanya Anand, Event Director, IREX,are increasingly evaluating international markets not just for rental income and capital appreciation, but also for the long-term value they can offer in terms of portfolio diversification and global mobility. 

 Business owners, traders and industrialists account for 53% of prospective home buyers, making them the largest group considering overseas property acquisitions. Corporate executives and working professionals represent 30%, while first-generation entrepreneurs account for 11%. The share of corporate executives and working professionals has increased from 7% a decade ago.

 As many as 85%  plan to invest between USD 250,000 and USD 1 mn in overseas property. Apartments and condominiums are the preferred property type, selected by 69% of respondents, followed by villas and townhouses at 26%. Penthouses account for 4% of preferences, while branded residences account for 1%.

Property size is another consideration, with 76% of respondents looking at homes measuring between 1,500 and 2,500 sq ft. Within this range, 49% prefer properties measuring 2,000–2,500 sq ft, while 27% favour homes in the 1,500–2,000 sq ft category.

 Property-related remittances by Indian residents for the purchase of immovable property abroad rose 64% year-on-year (YoY) to USD 528.70 mn in FY2025–26, highlighting the growing interest of Indian home buyers in overseas properties.