New Delhi, March 6 -- Grade-A real estate companies have been expanding their footprints from top-tier cities to tier-2 cities lately. A combination of factors such as affordability, relatively higher growth potential in untapped regions, and improving infrastructure, is enticing realtors and homebuyers towards tier-2 cities such as Agra, Chandigarh, Goa, Jaipur and Nagpur.

This also helps realtors lower the concentration risk since a large number of their offerings are still housed in tier-1 cities of Mumbai, Delhi-NCR, Bengaluru and Kolkata. But a gradual shift is already underway.

Godrej Properties Ltd, Prestige Estates Projects Ltd, Brigade Enterprises Ltd, Sobha Ltd and Puravankara Ltd are among developers who have exposure to tier...