Fast-growing hotspots: Enter tier II cities while prices are attractive

Many of them could emerge as growth hubs in the near future offering sound price appreciation, but they also carry the risk of a supply glut

Tier II and tier III cities present a varied picture as far as price appreciation in the residential segment over the past year is 

concerned. Some micromarkets have witnessed good appreciation (See: Fast-growing hotspots), while in most others prices have been stagnant or risen in the single digit. Nonetheless, an investor exploring investment options should consider these cities. 

Affordable option: The primary reason why tier II and tier III cities should be on an investor's radar is affordability. They offer options even to those with a limited corpus. “Capital values are much lower in these cities than in the metros,” says Gagan