Real Estate Trends
Tier-2 Cities: A 5-Year Comparison of Property Appreciation, Rental Yields and Buyer Demand
Over five years, tier-2 cities beat the metros on price growth and lost on rental yield. Home prices in 11 tier-2 cities rose 63% between 2021 and 2026, against 42% in the top eight cities. Implied gross rental yields are about 3.2%, a little below the 3.2% to 4.6% in the big metros. Buyer demand grew 14% a year from FY2021 to FY2026, then fell 10% in 2025 as prices rose and homes under ₹1 crore became scarce.