Top Tier 2 Cities In India In 2025

Tier 2 cities in India are rapidly developing regions with ambitious infrastructure, reasonable cost of living, and a huge scope of housing options. Tier 2 cities are an ideal investment options at relatively affordable rates for an assured and lucrative returns on investment in the future.

Classifications of Tiers of Cities 

RBI classifies the cities into tier 1 to 6 categories based on the population. 

The major classification is done as urban or rural areas.

• Rural Centre – The population of rural centres must be less than 10,000 people.

• Semi-Urban Centre – The population of the semi-urban centre must be around 10000 to 1 lakh.

• Urban Centre – The population of urban centres must be between 1 lakh to 10 lakhs.

• Metropolitan Centre – The population of the metropolitan centre must be more than 10 lakhs.

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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.

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 labour 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 growing towards urbanization and real estate demand is increasing as well.

Andra Pradesh

• 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 for citizens of this region.

• 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.

• Visakhapatnam

The city has led major construction projects and facing a great infrastructure expansion. This has created wide opportunities for real estate investments.

Punjab

• 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.

• Zirakpur

The excellent road connectivity and wide range of residential & commercial properties are leading an opportunity to invest in this city.

Maharashtra

• 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. 

• Nashik

Nashik is one of the largest cities in Maharashtra. Due to the expansion of tech parks, industrial and IT hubs, the investment capacity in this city has increased as well.

• 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.

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Karnataka

• 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 opportunities have arisen here whereas urban housing projects are the known ones.

• 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.

• Mysore

The growth of infrastructure and road connectivity has led Mysore City to expand in the real estate sector.

Tamil Nadu

• 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.

• 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 has great investment opportunities as well.

• 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. Now it is having great opportunity for the real estate sector.

Kerala

• Kochi

This city is commonly known as Cochin. It is the epicentre 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.

• 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 provides a range of residential units as well for homebuyers.

• 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.

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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.

List of Top Tier 3 cities in India

At present, the tech revolution is impacting economic growth and making way for global socio-economic transformation. 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

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