Tier 2 cities in India have the fastest-growing real estate market with continuously increasing real estate investments and infrastructure growth. Check out this article to gain information about the classification of tiers of cities, real estate trends of tier 2 cities, and a list of tier 1, 2, & 3 cities.
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Classifications of Tiers of Cities
RBI classifies the cities into tier 1 to 6 categories based on the population.
Tiers | Population |
Tier 1 | 1,00,000 and more |
Tier 2 | 50,000 to 99,999 |
Tier 3 | 20,000 to 49,999 |
Tier 4 | 10,000 to 19,999 |
Tier 5 | 5000 to 9999 |
Tier 6 | Less than 5000 |
And the major classification is done as urban or rural areas.
- Rural Centre – The population of rural centers must be less than 10,000 people.
- Semi-Urban Centre – The population of the semi-urban center must be around 10000 to 1 lakh.
- Urban Centre – The population of urban centers must be between 1 lakh to 10 lakhs.
- Metropolitan Centre – The population of the metropolitan center must be more than 10 lakhs.
List of Tier 2 Cities in India
Overall, 104 cities come under the Tier 2 category. The below-given list covers all those cities with states and union territories.
Union Territories and States | Tier 2 Cities |
Andhra Pradesh | Guntur, Warangal, Kakinada, Visakhapatnam, Kurnool, Nellore, Vijayawada, Rajamahendravaram |
Assam | Guwahati |
Bihar | Patna |
Chandigarh | Chandigarh |
Chhattisgarh | Durg-Bhilai, Raipur, Bilaspur |
Gujarat | Ahmedabad, Vadodara, Bhavnagar, Surat, Jamnagar, Rajkot |
Haryana | Karnal, Gurugram, Faridabad |
Himachal Pradesh | Shimla, Hamirpur |
Jammu & Kashmir | Srinagar, Jammu |
Jharkhand | Ranchi, Bokaro steel city, Jamshedpur, Dhanbad |
Karnataka | Mangalore, Belgaum, Mysore, Hubli-Dharbad |
Kerala | Kannur, Vijayapura, Kollam, Kozhikode, Thiruvananthapuram, Kochi, Thrissur, Malappuram |
Madhya Pradesh | Bhopal, Jabalpur, Gwalior, Ratlam, Indore |
Maharashtra | Amravati, Ujjain, Bhiwandi, Vasai-Virar, Jalgaon, Solapur, Nagpur, Sangli, Nanded, Nashik, Aurangabad, Kolhapur |
Odisha | Bhubaneshwar, Cuttack, Rourkela |
Punjab | Amritsar, Jalandhar, Ludhiana |
Pondicherry / Puducherry | Puducherry |
Rajasthan | Ajmer, Jodhpur, Jaipur, Bikaner, Kota |
Tamil Nadu | Coimbatore, Salem, Erode, Vellore, Madurai, Tiruchirappalli, Thanjavur, Tiruvannamalai, Tiruppur, Tirunelveli |
Uttar Pradesh | Aligarh, Varanasi, Agra, Gorakhpur, Bareilly, Prayagraj, Firozabad, Noida, Ghaziabad, Meerut, Gorakhpur, Moradabad, Jhansi, Mathura, Kanpur, Lucknow |
Uttarakhand | Dehradun |
West Bengal | Asansol, Siliguri, Durgapur, Purulia |
Real Estate Trends of Top Tier 2 Cities in India
As tier 2 cities in India are developing now, this is impacting on real estate sector as well. The below-given are some of the latest trends happening in the real estate sector.
- Smaller Cities are emerging in structured real estate markets.
- Demand-supply imbalance is stable now
- Problems related to migrant labor are minimal now.
- As land values are declining, developers are now able to gain higher profit margins.
- Property values are rising now.
Top Tier 2 Cities in India for Real Estate Investment
In India, tier 2 cities are gaining investments in Real estate as it is having growth towards urbanization and real estate demand is increasing as well.
Andra Pradesh
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Nellore
The economy of Nellore is increased by the growing agriculture and demand for exporting prawns and shrimp.
And now the investment alternative is also increased now for citizens of this region.
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Kurnool
This city has huge potential for mineral resources. As it has historical significance, this city is gaining a huge investment in commercial and residential real estate.
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Visakhapatnam
The city has led major construction projects and facing a great infrastructure expansion. And this has created wide opportunities for real estate investments.
Punjab
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Chandigarh
It is a very well-known city in Punjab. Being a well-planned tier 2 city, it has a great road network and infrastructure facility, which is leading to good investment opportunities for people.
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Zirakpur
The excellent road connectivity and wide range of residential & commercial properties are leading an opportunity to invest in this city.
Maharashtra
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Nagpur
This city has an international airport, road system, and metro rail services. And it has become an attraction point as well to real estate development.
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Nashik
Nashik is one of the largest cities of Maharashtra. Due to the expansion of tech parks, industrial and IT hubs, the investment capacity in this city as increased as well.
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Kolhapur
This city is well known for handcrafted goods, the regional Marathi film industry, and its rich culture.
It is in the southern part of Maharashtra. Property investment is also gaining popularity here.
Also check-out – Latest Property Rates In South Mumbai 2024
Karnataka
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Bellary
This city is in the northwest of Karnataka state. It stands as the second fastest-growing city in the state.
A variety of investment opportunity had arisen here whereas urban housing project is the known one.
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Hubli-Dharwad
Land availability in this city has made the expansion of the real estate market and given various jobs and housing opportunities to the citizens.
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Mysore
The growth of infrastructure and road connectivity has led Mysore city to expand in the real estate sector.
Tamil Nadu
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Madurai
This is one of the most populated cities in Tamil Nadu. The city is providing its residents with a first-rate road network and infrastructure growth. And this is what makes this city a real estate investment opportunity.
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Ambur
Tirupattur is the recently created district in which Ambur is a tier 2 city. This city has gained many business hubs and now it is having great investment opportunities as well.
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Vellore
This city stands on the banks of the Palar river of Tamil Nadu. It is actually known for having well-developed technological and medical institutions. And now it is having great opportunity for the real estate sector.
Kerala
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Kochi
This city is commonly known as Cochin. It is the epicenter of the commercial and cosmopolitanism of Kerala.
Kochi has huge properties for the business and residential sectors. And for that, it has become the desired real estate investment location.
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Thiruvananthapuram
This city is commonly known as Trivandrum. It is considered one of the top tier 2 cities in India. And it has huge IT clusters as well.
The connectivity option of the city is providing a range of residential units as well for homebuyers.
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Kozhikode
This city is Kerala’s historical coastal destination. As of now, it is moving towards urbanization which is leading to a rise in demand for the real estate sector.
Also check-out – Top 10 Tallest Buildings In India 2024
List of Top Tier 1 cities in India
Tier 1 city is densely populated and it faces high living expenses as well. These cities have facilities like international airports, education & research institutes, multi-specialty hospitals, industries, and many more.
The below-listed are the tier 1 cities of India.
States | Tier 1 cities in India |
Delhi | Delhi |
Maharashtra | Pune, Mumbai |
Karnataka | Bengaluru |
Gujarat | Ahmedabad |
Tamil Nadu | Chennai |
West Bengal | Kolkata |
List of Top Tier 3 cities in India
At present, the tech revolution is impacting economic growth and making a way for global socio-economic transformation. And this took its way to tier 3 cities of India as well.
Recent research concludes that various cities in India have emerged as startup hubs. Those cities also cover tier 3 cities of India.
The list of those cities is
- Aligarh
- Baroda
- Ludhiana
- Madurai
- Meerut
- Nashik
- Rajkot
- Solapur
- Trichy
- Vijayawada
Also check-out – Best Residential Projects In Kandivali 2024
FAQs
Which are the top tier 2 cities in Maharashtra?
Amravati, Bhiwandi, Vasai-Virar, Ujjain, Jalgaon, Nagpur, Solapur, etc are the well-known tier 2 cities of Maharashtra. |
Which are the fastest-growing tier 2 cities in India?
Patna, Mangalore, Belgaum, Mysore, Varanasi, Agra, Gorakhpur, Chandigarh, etc are some of the fastest-growing tier 2 cities. |
How many number of tier 2 cities are there in India?
Totally there are 104 cities that come under tier 2 cities as of now. |
Which are the tier 1 cities in India?
Delhi, Kolkata, Bengaluru, Chennai, Pune, Mumbai, and Ahmedabad are the tier 1 cities in India. |