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Luxury Finds New Home as Tier-II Cities Redefine Urban Living

Tier-II cities like Lucknow, Chandigarh, and Dehradun are driving India’s new luxury housing boom with comfort, sustainability, and community living with a balanced lifestyle.

BY Realty+
Published - Friday, 31 Oct, 2025
Luxury Finds New Home as Tier-II Cities Redefine Urban Living

Luxury housing in India is no longer the privilege of big metros. Cities like Lucknow, Chandigarh, Mohali, and Dehradun are quietly leading a lifestyle revolution, attracting professionals, families, and investors who want comfort, calm, and connection. The pandemic, hybrid work, and better infrastructure have opened the doors for this change, giving rise to a new wave of refined living in India’s smaller but fast-growing cities.

As per a recent Magicbricks report, Tier-II cities have outpaced metros in property value growth. The average capital appreciation in these cities is 17.6%, compared to Delhi’s 11.1%. This shows a clear shift in where people are putting their money and their hopes for the future. These cities offer space, greenery, and a quality of life that’s hard to find in overcrowded metros, without sacrificing the amenities of modern living.

Mohit Goel, Managing Director, Omaxe Group, says the perception around these cities has changed completely. “Tier-2 cities are no longer alternatives to metros. Buyers here want the same quality of life as those in Delhi or Mumbai. Infrastructure projects like highways, airports, and metro connectivity have transformed access, while businesses are also setting up offices beyond traditional hubs. The mindset has shifted, people now expect world-class living environments right in their hometowns.”

This new class of homebuyers is confident, practical, and deeply aware of value. They’re not chasing status symbols but meaningful living. Many are professionals returning from metros, entrepreneurs, and NRIs who want homes that reflect their success yet remain grounded in simplicity. For them, a home is not just a financial investment, it’s a personal sanctuary.

These buyers prioritize morning walks over long commutes and quiet neighbourhoods over crowded malls. They want sustainability, smart design, and community living. This move from transactional to purposeful home buying is shaping the identity of India’s emerging cities.

Udit Jain, Director at ONE Group, highlights Mohali’s transformation. “Mohali has evolved from a satellite city to a thriving urban centre,” he says. “The new airport, expressways, and IT corridor have completely changed its appeal. The luxury buyer here is no longer only an NRI, today it’s also young professionals and entrepreneurs from Punjab, Himachal, and Jammu. For them, luxury is about design, technology, and a sense of community. Our projects reflect that shift through sustainable green spaces and smart features that enhance comfort and connection.”

In Chandigarh’s Tricity region, the story is similar. Piyush Kansal, Executive Director, Royale Estate, says, “Chandigarh has always stood for elegance and structure, and the new luxury housing scene continues that tradition. Buyers here have a refined taste—they value open spaces, architectural harmony, and developments that integrate sustainability without losing beauty. There’s growing preference for low-density, boutique projects that offer privacy and exclusivity rather than large high-rises. This reflects a modern yet mindful way of living.”

The trend isn’t just anecdotal, it’s backed by data. According to the latest CREDAI–Liases Foras report covering 60 cities, Tier-II and emerging markets accounted for 44% of all land acquired by developers in 2024. Housing sales hit 6.81 lakh units, a 23% jump from last year, while total sales value rose 43% to Rs. 7.5 trillion. The numbers clearly show confidence in these cities’ long-term growth.

In Dehradun, developers say luxury is being redefined through balance and nature. Manit Sethi, Managing Director, Excentia Infra, explains, “People are drawn to Dehradun for its calm pace and quality of life. They are looking for homes filled with light, greenery, and openness. Features like solar power, wellness decks, and meditation spaces are now seen as essentials. True luxury today is about simplicity and emotional grounding.”

Echoing that thought, Harvinder Singh Sikka, Chairman of Sikka Group, adds, “With the Delhi-Dehradun Expressway improving connectivity, this region is becoming part of North India’s luxury corridor. Buyers here want sustainable, spacious homes surrounded by the beauty of the hills. It’s about combining modern design with natural serenity.”

As India’s smaller cities evolve, they’re creating a new definition of aspiration, one rooted in space, sustainability, and self-assurance. The idea of luxury is no longer about extravagance, but about balance, beauty, and belonging. These cities are not just catching up to the metros, they are quietly showing the rest of India what modern living can truly mean.

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