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Tier-II cities: The new frontier of the housing boom

06 Nov 2021 by Team FinFIRST
Tier-II cities: The new frontier of the housing boom

Tier-II cities offer affordable housing, lower cost of living, and a better quality of life than metros, prompting many people to consider a move


Tier-I cities, commonly called metropolitan cities or metros, have long been a magnet for settlers. Historically, people have flocked to metros in search of better job opportunities and more egalitarian societies. With the lockdown-fuelled growth in remote working, metros are suddenly witnessing a slow but steady exodus of people, who are now flocking to tier-II cities instead, owing to several reasons. Let's see what they are.

1. Lower cost of living


On average, the cost of living in tier-II cities tends to be lower than in metros. A big reason for this is the lower cost of real estate and labour, which drives down prices of other products and services. Tier-II cities are usually cheaper in terms of rent, healthcare, and education costs for children. 

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2. Affordable housing


One of the greatest draws of moving to a tier-II city from a metro is the lower cost of real estate. Land, buildings, apartments, and commercial spaces tend to be far more affordable in tier-II cities. As such, individuals and families looking to buy a home might find far more attractive and spacious options within their budget in tier-II cities. Buying a house in a tier-II city makes more sense from a home loan perspective, too: cheaper real estate means a smaller loan, reducing the borrower's interest and repayment burden. IDFC FIRST Bank's home loans start with interest rates as low as 6.9% per annum and tenures as long as 30 years. The application and approval process is entirely digitised.

3. Proximity to family


Many metro settlers still have a family, including parents, living in tier-II cities. With many physical workplaces being rendered unnecessary thanks to remote work options, people are tempted to move back to their hometown closer to families and parents. 

IDFC FIRST Bank's home loans start with interest rates as low as 6.9% per annum and tenures as long as 30 years. The application and approval process is entirely digitised.

 

4. Better quality of life


Tier-II cities tend to be less congested, have lower air pollution, boast more open spaces, and offer more accessible access to the great outdoors than metros. For many people, these factors result in a better quality of life for themselves and their families. As housing options develop in tier-II cities, their value proposition becomes difficult to deny.

If there ever were a time to move away from a metro, it is now. The shackles of big city offices have been broken, and connectivity, public transport, and communications infrastructure in tier-II cities are fast catching up. If you are considering relocating to a tier-II city with homeownership in mind, check out IDFC FIRST Bank's home loans here. With great interest rates, flexible tenures, and a no-hassle digital application process, this could provide the fillip your life needs. 

 

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.