The Rise of Refined Living: Tier 2 Cities Lead India's Luxury Shift

India’s luxury housing story is no longer confined to its metros. A quiet but powerful shift is unfolding in Tier 2 cities, where rising disposable incomes, reverse migration, and hybrid work lifestyles are rewriting aspirations. Families and professionals who once viewed Delhi, Mumbai, or Bengaluru as the ultimate address are now seeking spacious, well-designed homes in cities that promise balance and belonging. With improved connectivity, upgraded infrastructure, and a maturing lifestyle ecosystem, these cities are becoming magnets for those craving modern comforts without the chaos of megacity living.

Modern elegance emerges as Tier 2 cities embrace refined Indian living

According to Magicbricks, India’s real estate investment landscape is undergoing a shift, as Tier-2 cities are outperforming their Tier-1 counterparts in terms of capital appreciation. The report shows the average capital appreciation across Tier-2 cities stands at 17.6%, outpacing the national capital’s 11.10%. Cities like Chandigarh, Mohali, Lucknow, Prayagraj, and Dehradun have emerged as the new epicentres of refined urban living, each city offering its own distinct rhythm of growth and grace. These destinations are drawing not just local buyers but also investors and families from NCR, Mumbai, and even overseas, who see in them a blend of comfort, value, and future potential.

Mohit Goel, Managing Director, Omaxe Group, says, “Tier 2 cities are no longer alternatives to metros. One of the primary drivers of growth in these cities is the rising demand for quality living and luxury housing. Cities like Lucknow, Chandigarh, and Prayagraj are upgrading faster than most people realize. Infrastructure developments like highways, airports, and metro connectivity have opened them up in a way that was unthinkable a decade ago. What stands out is the shift in mindset—homebuyers here are no longer settling for basic housing; they aspire to the same world-class lifestyle as metro residents. Businesses, too, are seeking modern commercial spaces outside the traditional hubs. Together, these forces are turning Tier-2 cities into vibrant, self-sustained urban centres.”

The new generation of Tier-II homebuyers is more self-assured and value-conscious than ever before. They include upwardly mobile professionals, entrepreneurs, NRIs, and families returning from metros in pursuit of balance and belonging. For them, a home represents far more than an asset—it’s a sanctuary that supports wellbeing, connection, and calm.

Convenience remains important, but not at the expense of peace. They prioritise morning walks over long commutes, vibrant communities over crowded malls, and sustainable design over excessive scale. This evolution from transactional purchases to purpose-driven living is steadily redefining the character of India’s emerging urban centres.

Udit Jain, Director, ONE Group, says, “The evolution of Mohali perfectly illustrates how infrastructure can reshape aspirations. Once seen as a satellite city of Chandigarh, Mohali has now emerged as a thriving urban hub, driven by developments such as an international airport, expanding expressways, and a rapidly growing IT corridor. The profile of luxury homebuyers here is also transforming—no longer limited to NRIs, but increasingly comprising young entrepreneurs, professionals, and families from across northern India, including Punjab, Himachal, and Jammu, who seek a lifestyle aligned with global benchmarks. For them, luxury goes beyond opulence—it’s about experience, design, and community living. Reflecting this shift, our projects emphasize smart technologies, sustainable green spaces that encourage connection, and homes that offer lasting comfort and long-term value.”

Piyush Kansal, Executive Director, Royale Estate, says, “Chandigarh – Tricity Area has always embodied elegance, structure, and a certain quiet sophistication, and today’s luxury housing market is simply an extension of that identity. Buyers here have a deeply refined sense of what luxury means. They value architectural symmetry, open landscapes, and homes that integrate sustainability without compromising on aesthetics. The preference is shifting towards low-density, boutique developments that offer both exclusivity and intimacy, a far cry from the high-rise clutter seen elsewhere. This understated, mindful approach to living perfectly mirrors the ethos of the modern Chandigarh resident: rooted in legacy, successful in outlook, and discerning in taste.”

According to the CREDAI–Liases Foras report on India’s real estate landscape across 60 cities, Tier-II and emerging urban centres are now commanding a significant share of the market momentum. In 2024, these cities accounted for nearly 44% of the 3,294 acres of land acquired by developers—a clear sign of confidence in their long-term growth potential. The report also revealed that housing sales reached 6.81 lakh units, marking a robust 23% year-on-year rise, while the overall primary market clocked a sales value of ₹7.5 trillion, up 43% YoY, powered by consistent demand across all price brackets.

Manit Sethi, Managing Director, Excentia Infra, says, “The idea of home today goes far beyond four walls—it’s about emotional grounding and everyday balance. In places like Dehradun, this sentiment finds its truest reflection. People are drawn not just to its natural charm, but to the quality of life it offers: fresh air, unhurried living, and a sense of belonging that metropolitan life often misses. Buyers now seek homes that breathe spaces with light, greenery, and calm woven into their design. Features like wellness decks, meditation corners, and solar systems are no longer luxuries; they’re essentials of mindful living. This is where modern homes are redefining luxury, through simplicity, balance, and quiet elegance.”

Harvinder Singh Sikka, Chairman, Sikka Group, says, “The luxury homebuyer in Dehradun is deeply aware and aspirational. They’re not only seeking spacious, high-spec apartments but also a lifestyle aligned with sustainability and wellness. With improved connectivity to NCR and the upcoming expressways like the Delhi-Dehradun Expressway, the region has become a natural extension of North India’s luxury corridor. As developers, we ensure our projects reflect that vision—urban elegance surrounded by the serenity of the hills.”

As India’s economic and urban evolution gathers pace, tier 2 cities will stand at the forefront of aspirational living, where modern design, sustainability, and cultural rootedness come together to form the new language of luxury.