Migrants Are Fleeing to Tier-2 and Tier-3 Cities as a Result of Pandemic

Kishan Thakkar K

In addition to being the largest source of internal migrants, India has a substantial share of international migration (UNDESA, 2020). Census data estimates the number of internal migrants in India to be 450 million in 2011, an increase of 45% since the Census 2001 (De, 2019).

“Reverse migration” describes the process of internal and international migrants returning to their places of origin from their countries of destination.

According to an Anarock report, reverse migration from the metro cities will increase demand for rental housing in tier-II and tier-III cities, initially in the rental segment.

About 70 percent of India’s residential market is currently concentrated in the top seven cities, while 30 percent of it is located in Tier-II and III cities. However, the ratio may well change in the future, said the report.

Source: housing.com

In reverse migration, national-level developers could bring their practices to the projects run by smaller developers in these cities. We may also see an increase in new launches in tier-2 and tier-3 cities and a corresponding increase in the market share of these smaller cities in the coming months.

Additional Sources

  1. Challenges of reverse migration in India
  2. Reverse migration: Will real estate in tier-2 and tier-3 cities gain by default?

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