Tier II and III Cities Expected to Drive Next Phase of India's Housing Market Growth

According to a report by real estate consultant Square Yards, India's housing market is entering a new phase where tier II and III cities are expected to drive growth. Rising home prices and limited affordable supply in major metros like Mumbai, Delhi-NCR, and Bengaluru have reduced demand there. Smaller cities offer more affordable options and better price-to-income alignment, with growth driven by end-user demand and expanding employment beyond metros. The upcoming 2026-2028 cycle is projected to be more sustainable and less speculative.