Many people seek homes in India’s tier 2 cities. This is especially true for the working population. Tier 2 cities offer a lower cost of living. Housing is also more affordable than in large cities. Property values have grown significantly over the last decade. This growth stems from better infrastructure. It also comes from increased property demand. The government is also improving infrastructure in tier 2 and 3 cities. This has encouraged developers and state governments. They are now focusing on these high-potential, but previously overlooked, tier 2 markets. Jaipur, Nagpur, Ahmedabad, Lucknow, and Chandigarh are becoming popular real estate spots.
For instance, Goa’s government works with STPI. They are building infrastructure for software exports. This encourages tech startups. Tech firms can now work from anywhere. Places like Goa can attract more investment. Many states also support manufacturing. This is part of the “Make in India” plan. They focus on their key tier 2 cities. These cities, especially those near industrial routes, could drive future economic growth. Real estate in these areas is also likely to boom.
Indian cities are categorized by population. The government uses X, Y, and Z categories. Tier 1 cities are X. Tier 2 cities are Y. Tier 3 and 4 cities are Z. Tier 1 cities are highly developed. They include metropolitan areas. Tier 3 cities are still developing.
India has eight major tier 1 cities. These are Delhi, Mumbai, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune. India has 104 tier 2 cities. Other cities are tier 3 or 4.
Tier 1 cities are crowded. Living costs are high. They have major airports, industries, and top hospitals. They also have good schools and research centers. Some tier 2 cities are very similar to tier 1. Urban experts see little difference. Cities like Gurgaon, Noida, Vellore, Coimbatore, Kochi, Thiruvananthapuram, Patna, Rajkot, Goa, Lucknow, and Jaipur may soon rival tier 1 cities.