The residential real estate landscape in South India is experiencing a seismic shift, with new Tier-2 cities stepping into the limelight as fresh havens for homebuyers and investors alike. This transition marks a notable swing in the South Indian real estate pendulum, moving away from the bustling hubs of Bangalore, Chennai, and Hyderabad towards promising prospects in the lesser-known cities of the region. With the cost of living being more wallet-friendly, these emerging cities are now within reach for many. They offer robust infrastructure, a wealth of job opportunities, and lower cost of living for a good lifestyle, drawing in a diverse crowd, particularly young  professionals. This is positioning South India’s Tier-2 cities as the new gold mines for investment and residential living.

Coimbatore: Manchester of South India 

Coimbatore, which comes second in ranking as the textile manufacturing sector after Chennai, has proven to be the first Tier-2 city to maintain its position in residential real estate. This is not a mere coincidence; it is the result of an extensive framework for industrial and educational development for the city. This prime city is also well known for its flourishing industry, exceptional educational institutions, and moderate-paced lifestyle. The demand for residential properties in Coimbatore is increasing with the advent of the IT and manufacturing technology parks in Saravanampatti, Race Course, and Peelamedu. With regards to property prices, Coimbatore is quite affordable in comparison with metro cities, making it a prospective location for both investing and buying homes. Its growing accessibility makes it even more appealing. This improvement in the region’s accessibility opens new doors for businesses, greatly adding to the existing demand. Also, there is constant development within the real estate market of the region as several housing estates are being planned for professionals wanting to move to a less expensive city. Coupled with the growing investments in infrastructure, it is predicted that Coimbatore will be a major player in fuelling the upcoming southern real estate boom.

Trichy: A Mix of Culture and Urban Development 

Trichy known as the temple city and the hub of professional colleges, is now transforming into a sought after residential  destination. The newer and fast developing suburbs of Srirangam and Tidel Park are among the most sought-after places for residential projects due to their ideal location and upcoming industrial development centres. Trichy draws families and retirees because of its relatively inexpensive living cost and peacefulness compared to other metropolitan areas. The city offers a tranquillity that far surpasses the unrelenting noise and movement present in larger cities. Importantly, the ongoing projects such as Smart City Trichy and other city infrastructure upgrades will add to its worth. The forecasted changes will certainly enhance the capabilities of the city, making it an urban centre in the coming years. These changes in infrastructure along with the Smart City plans will substantially increase investments in the area.

Vijayawada: Self-Sustained City Focused on Real Estate 

Alongside Trichy, Vijayawada, which was previously considered a small town in Andhra Pradesh, is now one of the most developed urban cities in the state. This city has seen growth as a result of its strategic significance in the recently formed state. Especially the development of Amaravati, the capital city of Andhra Pradesh, has accelerated growth in this region and turned Vijayawada into a self-sustained city focused on real estate. It has further boosted the industrial sector and enabled the residential sector, located on the banks of the Krishna River, to grow at an accelerated pace. With the construction of new housing societies along MG Road, Benz Circle, and Undavalli main road, it is now accessible to all segments of society. This development also aids in the improvement in living  standard of  citizens by providing them with a wider scope of employment opportunities. Furthermore, the rising Bit City: Tata Consultancy Services facilitates access to private and public educational institutions, schools, and medical facilities alongside newly constructed highways and byways, which is expected to stimulate additional investment.

Conclusion

South India’s Tier-2 cities are developing as new centres of interest for residential real estate. This shift is attributed to economic, social, and infrastructural reasons. The amalgamation of cosmopolitan facilities and calm lifestyles greatly appeals to modern residents. Hence, the investment in infrastructure and commerce, targeting these regions makes these Tier-2 cities of Southern India attractive for investment in residential real estate. These cities are now emerging as the new frontiers for urban expansion in India .