Get access to Exclusive Content for Free. Join Us Now!

Explore Aurum kuberx Click here to explore

/Media/Gen Z Driv...

Gen Z Drives Commercial Real Estate Boom in Tier II-III Indian Cities

25th May 2025

4 Min Read

Gen Z’s Aspirations Shape New Skylines

Across India’s emerging cities, a quiet revolution is underway. As the baton passes to Gen Z—the tech-savvy, entrepreneurial, and globally connected generation—real estate developers are reimagining their strategies to meet the evolving aspirations of this youthful demographic. The result is a surge of commercial real estate projects in Tier II and III cities, from Ludhiana to Amritsar and beyond, designed to offer world-class experiences and amenities for a new generation of consumers and entrepreneurs.

Tier II-III Cities: The New Growth Frontiers

Luxury cafes, fine dining restaurants, gaming centers, salons, malls, and exhibition venues are flourishing in these smaller cities, reflecting the growing demand for modern lifestyles and tech-enabled workspaces. Developers are closely monitoring Gen Z’s preferences, recognizing that this cohort—born between 1997 and 2012—demands more than just infrastructure; they seek vibrant, connected, and sustainable communities.

Investments and Innovations Fueling Change

Leading regional players and Grade-A developers from Tier I cities are ramping up investments in non-metro markets. For example, the Vardhman Amrante Group recently announced a Rs 1,350 crore investment in Punjab’s real estate, spanning commercial, residential, hospitality, and industrial segments. These investments are transforming cities like Ludhiana, Amritsar, Karnal, and Meerut into hubs of modern commerce and lifestyle.

Infrastructure, Talent, and the Startup Surge

The commercial real estate boom is driven by robust infrastructure, improved connectivity, and a skilled workforce. Decentralized work models and the rise of startups have further accelerated demand for high-quality office spaces and mixed-use developments. Approximately 15% of India’s tech talent now resides in these smaller cities, underlining their growing importance in the national talent landscape.

Future Outlook: New Engines of Growth

Industry experts predict that Tier II and III cities will become the next growth engines for India’s office and commercial markets, supplementing the established Tier I hubs. The India Brand Equity Foundation (IBEF) projects a 9.2% CAGR for the real estate sector from 2023 to 2028, signaling robust opportunities ahead. As developers continue to innovate and invest, these cities are poised to offer the modern, tech-driven environments that Gen Z craves.

Unlock the Latest in Real Estate

Reach Out to Us

Data that drives action. Insight that inspires action. Technology that empowers action.“

Aurum Proptech

© PropTech Pulse 2025, All rights reserved.

Terms of Use and Privacy Policy