Cities | Paradigm Shift | Tier-2 | List of Top Tier | Conclusion | Faqs

When making a move, one of the most important things to consider is your investment potential. We have compiled a list of India’s top investment-worthy tier 2 cities.

With an estimated population of over 1.3 billion people, India is a country that is quickly growing in popularity amongst both businesses and individuals alike. As such, many cities across the country are now becoming high-traffic investment destinations.

This article will look at the 10 investment-worthy tier 2 cities in India and discuss why each is worth your consideration.

Tier 2
Source: Sanket Shah /unsplash

Tier 2 Cities in India

Tier 2 cities in India have a population of more than 1 million but less than 5 million. They are considered growth centres and often the site of new businesses and industries.

There are many reasons why tier 2 cities in India are becoming increasingly investment-worthy.

  • Firstly, these cities have a large population base growing faster than the national average.
  • Secondly, they have a high infrastructure development level, which means they are well placed to accommodate new businesses and industries.

India’s top tier 2 cities include Mumbai, Delhi, Bangalore, Ahmedabad, Chennai, Hyderabad, and Kolkata. Each of these cities has its unique strengths and opportunities, so it is essential to do your research before making any investments.

Tier 2 Indian Real Estate Paradigm Shift

There is a paradigm shift happening in the real estate sector in India. Investment-worthy Tier Cities are becoming the new hotspots for real estate investors. These cities have several reasons why they are attracting investors.

  • First, these cities have a high population growth rate. This means that there is an increasing demand for housing and property.
  • Second, these cities have a stable economy. This means they are not experiencing any major economic downturns that could impact the real estate market.
  • Third, these cities have a low cost of living. Property prices are comparatively lower than in other areas in India.

India’s Tier-2 Cities

There has been a lot of focus on Tier 1 cities recently. However, another group of cities is growing much faster – Tier 2 cities.

Tier 2 cities are located in mid-sized and lower-middle income countries. They offer a great investment opportunity due to their high population growth rates, low unemployment rates, and increasing consumption levels.

India’s top investment-worthy Tier 2 cities include Surat, Gurgaon, Ahmedabad, Indore, and Lucknow. Each city has unique features that make it an excellent investment destination.

If you are interested in investing in a Tier 2 city in India, do your research first. You must know which city best suits your business or investment goals.

List of Top Tier 2 Cities in India to Invest In

India is one of the fastest-growing economies in the world, and its population is set to reach 1.8 billion by 2027. This growth has created a massive opportunity for investors, and there are now many investment-worthy cities in India.

This article has compiled a list of India’s top 10 tier 2 cities to invest in. These cities are located in the following states: Gujarat, Rajasthan, Uttar Pradesh, Bihar, Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka, and Kerala.

Tier 2 Karnataka cities

India is a country of immense potential, and with an increasing population, there is an ever-growing need for good quality infrastructure. To provide good infrastructure to the people of India and to make it the leading economy in the world, the government has identified certain key Tier 2 cities as investment-worthy. These cities include Bangalore, Mysuru, Coimbatore, and Nagpur.

Karnataka has a significant number of Tier 2 cities currently attracting investment. These cities have a lot to offer investors, including a large pool of skilled labour, ample resources, and a favourable business climate.

If you are looking for a city to invest your money in, consider investing in one of Karnataka’s top Tier 2 cities. These cities will provide many benefits, including high growth potential and profitable investments.

Tier 3 and Tier 2 Cities in Maharashtra

Maharashtra has a wealth of investment-worthy cities that offer excellent growth prospects. Here is a list of the top three and two-tier cities in Maharashtra.

  1. Mumbai
  2. Pune
  3. Nagpur
  4. Nashik
  5. Aurangabad
  6. Thane
  7. Kolhapur
  8. Amravati
  9. Ahmednagar
  10. Wardha

Tier 3 and Tier 2 Cities in Tamil Nādu

There are many different factors to consider when choosing a city to live in, but one of the most important aspects is the quality of life.

To help you choose the best city for your investment, we have compiled a list of the top tier 3 and tier 2 cities in Tamil Nadu. These cities offer a high quality of life with great amenities and opportunities.

In Tamil Nadu, the cities are classified into three tiers – Tier 1 cities, Tier 2 cities and Tier 3 cities. These classifications are helpful for the government as they help plan schemes and taxes. For instance, tier 1 cities are more affordable than tier 3 cities but still have poor infrastructure and connectivity.

The residents of tier 2 cities are more aware of budgeting and saving. There are many new government schemes aimed at helping these people by providing them with cheap home loans and promoting sustainable living. These government schemes aim to reduce the consumption of utilities and amenities. Smart City projects are also helping in creating a benchmark in these cities. The Indian government has also introduced a stress fund to boost the real estate growth in Tier 2 cities.

Tier 2 Cities in Maharashtra

These tier 2 cities are known for its Marathi film industry and has an ancient spiritual background.

Kolhapur: Besides being a tier 2 city, Kolhapur has a proper municipality system and is a prime place to invest in real estate.

Nashik: The largest city in Maharashtra, Nashik is the home of the annual Kumbh Mela and one of the state’s top real estate markets.

Conclusion – Move to Tier 2 Indian Cities!

As the world progresses, so does the need for better living standards. With that in mind, many people are moving to different cities worldwide.

The list includes cities such as Mumbai, Hyderabad, Bengaluru, and Ahmedabad. These cities offer a high investment potential and are ideal for those looking for a stable and prosperous future.

You can find more information about each city on our website. We also offer a comprehensive guide on how to move to any tier 2 city in India. This guide will help you to make the most informed decision possible.


Q1. How many tier 2 cities are there in India?

India has a total of 23 tier 2 cities as of March 2019. These cities have less than 1 million population and are not designated as metropolitan areas.

A total of 12 Indian cities are considered tier 2 cities. These cities have a population of between 1 million and 5 million. The other 11 Indian tier 2 cities have a population of between 5 million and 20 million.

The list of Indian tier 2 cities is as follows:

  • Mumbai (Bombay)
  • Chennai (Madras)
  • Delhi
  • Kolkata (Calcutta)
  • Ahmedabad
  • Bengaluru
  • Hyderabad
  • Pune
  • Bangalore

Q2. What are tier 2 cities in India?

Tier 2 cities in India have a population of more than one million but less than five million. These cities offer several advantages over larger cities, including better infrastructure and faster growth.

Some critical factors to consider when investing in a tier 2 city are. For example, you should focus on healthcare, education, and business growth.

Each city is different, so it is essential to do your research before making any investment decisions. However, the following list provides a snapshot of some of India’s most promising tier 2 cities.

  • Bombay
  • Kolkata
  • Hyderabad
  • Nagpur
  • Pune
  • Mumbai
  • Ahmedabad

Q3. How did COVID-19 affect India’s tier 2 real estate?

Over the past few years, there has been a surge in interest in tier 2 cities worldwide. This is likely because they offer a great combination of quality of life with a low cost of living.

There are many reasons why people are drawn to tier 2 cities. They offer a more diverse and cosmopolitan experience than other cities and are often more affordable.

However, the COVID-19 pandemic impacted tier 2 city real estate. Many people moved out of tier 2 cities after the pandemic hit, as it became difficult to commute to work. This led to a decrease in demand for real estate in these cities.

Overall, the COVID-19 pandemic hurt tier 2 city real estate. However, this doesn’t mean these cities are not worth investing in. It is essential to do your research before making any decisions and to consider factors such as population growth, economic stability, and crime rates.

Q4: Which tier 2 cities are India’s fastest-growing economically?

There are many reasons why tier 2 cities in India are growing rapidly. Some of the top reasons include the increase in job opportunities, the growth of the informal sector, and the growth of the tourism industry.

Here is a list of the top 10 tier 2 cities in India based on their income growth:

  1. Chennai
  2. Ahmedabad
  3. Bangalore
  4. Mumbai
  5. Delhi
  6. Kolkata
  7. Hyderabad
  8. Pune
  9. Lucknow
  10. Nagpur