Non-Resident Indians (NRIs) have been long-time active participants in India’s real estate market—primarily opting for metro cities like Mumbai, Bengaluru, and Delhi. However, 2025 sees a dramatic change in investor behavior. Tier 2 cities—such as Raipur, Bhopal, Nagpur, Indore, and Lucknow—are now on the radar of every NRI investor.
What’s different? Why are Tier 2 real estate markets gaining international interest from NRIs in 2025?
Here, we spell it out: the trends, the opportunities, the numbers, and the reasons why investing in Tier 2 India is no longer a choice—it’s strategic.
🌍Why Design Counts More Than Ever
Historically, NRIs have considered Indian real estate from two perspectives:
- Emotional: Buying a property “back home” for parents or future return.
- Financial: Investing in fast-growing metro markets for capital appreciation.
However, in recent years, a third, more strategic motivation has emerged—diversifying their portfolio with low-risk, high-growth real estate investments in India’s emerging cities.
Here’s why:
- Metro markets are saturated — prices are already sky-high.
- Rental yields are better in Tier 2 cities.
- Infrastructure in smaller cities has drastically improved.
- Increasing NRIs are looking to come back to India after retirement or for blended work lifestyles.
🏙️What is a Tier 2 city?
Tier 2 cities in India are smaller than metros but fast-growing cities. They comprise cities such as:
- Raipur (Chhattisgarh)
- Bhopal (Madhya Pradesh)
- Nagpur (Maharashtra)
- Indore, Kochi, Lucknow, and Visakhapatnam
These cities provide low property prices, improved quality of life, increasing infrastructure, and reduced congestion—all which appeal to NRIs seeking value-based investments.
🔑7 Fundamental Reasons NRIs Are Investing in Tier 2 Cities
- Reasonably Priced Entry Point
In Tier 1 cities, ₹1 crore may only allow you to buy a small 1 BHK apartment. In Tier 2 cities such as Raipur or Bhopal, the same money can give you:
- A large 3 BHK
- A ready-to-move villa
- Or even 2 rental flats in prime locations
Tier 2 city average prices vary from ₹3,000–₹5,500 per sq.ft—almost half the cost of metros.
- Better Rental Yields
Metro cities provide 2–3% rental yield, but numerous Tier 2 cities now provide 4–6% yield due to:
- Urban migration
- Developing job markets
- Increased demand for rental housing (students, IT professionals, SMEs)
NRIs searching for stable passive income find this very appealing.
- Capital Appreciation Increasing
With IT parks, metro extensions, and expressways, these previously neglected towns are now flourishing.
📈 Raipur, for example, has witnessed 8–10% annual appreciation in prices in some residential clusters over the last 3 years.
Purchasing today implies entry into the growth slope early, before costs escalate further.
- Enhanced Infrastructure & Liveability
Tier 2 cities now possess:
- Airports & better railway connectivity
- Top-class hospitals, malls, and schools
- IT parks and startup parks
- Clean, thoughtful layouts
This infrastructure growth makes these cities livable, rentable, and retireable—ideal for NRIs who may move later in life.
- Less Competition, More Peace of Mind
Metro markets are congested—not only in traffic, but in developer competition, speculative pricing, and complicated legal procedures.
In Tier 2 cities:
- You deal directly with quality local developers
- There’s less speculation and more end-user purchase
- Projects are RERA-approved, clear in title, and simpler to buy remotely
- Lower Ownership Cost
With lower property taxes, less expensive maintenance, and reduced cost of living, property ownership in Tier 2 cities is less costly over the long haul.
Tier 2 property can be used by most NRIs as:
- A retirement residence
- A short-stay vacation rental (Airbnb)
- Or even a home to return to India without city madness
- Government Incentives & Smart City Missions
Most Tier 2 cities are now Smart Cities under the Indian government’s flagship program. That includes:
- 24/7 power, water, and Wi-Fi
- E-governance and digital service centers
- Traffic decongestion and smart mobility
- Green spaces and sustainability programs
This raises the city’s livability score—a big advantage for NRI families.
📊Real Data: NRI Demand for Tier 2 Properties in 2025
As per a report by JLL & CREDAI (April 2025):
- 41% of NRI real estate searches now encompass Tier 2 cities (an increase from 23% in 2022)
- 3 out of 5 NRIs intending to retire in India opt for non-metro locations
- Raipur, Indore, and Kochi are the most sought-after by NRI demand under ₹80 lakh
🏘️What Kind of Properties Are NRIs Opting For?
- Ready-to-move 2 & 3 BHK apartments (for rentals & low risk)
- Independent villas or row houses (for future relocation or retirement)
- Plots in gated communities (to hold to build later or as an appreciating asset)
The majority of NRIs opt for RERA-registered, branded developer projects for credibility and transparency.
🧠Investment Tips for NRIs in Tier 2 Cities
- Consult a local advisor or platform such as Property Suggestions to shortlist properties
- Always verify RERA registration & clear title
- Look into property management services for resale or rentals
- Utilize NRE/NRO accounts and follow proper repatriation routes
- Prioritize cities with upcoming infrastructure such as metros, ring roads, and smart city initiatives
🏡Why PropertySuggestions.com Is the Go-To Partner for NRIs
At Property Suggestions, we make NRI investment in Tier 2 India easy:
- Ground reality verified listings in Raipur, Bhopal & Nagpur
- RERA-verified projects only
- Virtual site visits, videos & drone shots
- Legal verification & documentation assistance
- Property management for rentals & resale
Whether you’re investing, seeking passive income, or homecoming-bound, we’re your eyes and ears on the ground.
✈️ Last Word: Tier 2 India Is No Longer a Plan B — It's the Smart Bet
Being an NRI in 2025 isn’t about asking yourself “Should I invest in India?” — it’s about “Where do I put my money for maximum return and minimum hassle?”
And the answer, more and more, is Tier 2 India.
With increasing returns, improving infrastructure, and increasing demand, these upcoming cities are high-potential, low-risk areas for long-term wealth generation and life planning.
Ready to Explore the Right Project?
Let us walk you through handpicked properties in Raipur. Schedule a free 1-on-1 session at www.propertysuggestions.com or WhatsApp us directly. Your future in India begins with a savvy decision today.