Real Estate | Indian Cities | Advantages and Disadvantages | Real Estate Trends | List | Top Tier-2 | Tier 2 Cities | Stamp Duty | Investment | Development | Real Estate Boom | Modified Purchasers | Estate Funds | Cities | Conclusion

The real estate market in Tier 2 and Tier 3 cities is expected to grow quickly over the next few years. If you want to invest in property in one of these cities, you should do so now!

Indian cities
Source: Rohan Reddy / unsplash

India’s Tier II cities are experiencing a “moment of value.” The pandemic has forced people to reassess their priorities. No longer are these cities considered the poor cousins of their metro counterparts. They are now experiencing unprecedented growth in commercial development and real estate.

According to the latest Consumer Sentiment Survey, real estate investors are shifting to non-metro cities. This is the affordable price range of property in these cities. Also, companies believe that growth opportunities are higher in these smaller cities. Also, several government initiatives are supporting the development of these cities. One such initiative is the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

While the real estate market is booming in many Tier 1 and Tier 2 Indian cities, it is far from overheating. While many work from home, the lockdown forced people to move back home and realize the importance of owning a home. This led to a spike in home buying in these cities. Also, many reputed developers have shifted their business to these cities. This is good news for the future of real estate in these cities since housing quality will likely improve.

Reasons for the boom in the real estate sector in 2022

With the ongoing economic growth in India and increasing demand for real estate, tier 2 cities are expected to see a boom in the real estate sector in 2022. Here is a look at some of the reasons why:

1. Improved Infrastructure: With rapid economic growth, more and more people are moving to tier 2 cities, increasing the number of businesses and the number of people who need to live near these businesses. This, in turn, leads to an increase in the demand for housing and office spaces, which is why tier 2 cities are expected to see a boom in the real estate sector in 2022.

2. Strong Economic Outlook: The economic outlook for India continues to be positive, with steady growth anticipated over the next several years. This means there will be an increased demand for real estate across all sectors, including the residential and commercial sectors.

3. Increased Foreign Investment: Many foreign investors are currently bullish on India’s real estate market due to its strong prospects for growth. This is because they understand how vital infrastructure development is for any country, and India’s infrastructure is rapidly improving. As a result, many investors expect a boom in the real estate sector in tier 2 cities in India.

Which Indian cities are tier 1, 2, and 3?

Tier 1 cities in India are those cities that have a high quality of living and are considered to be very well developed. These cities include Mumbai, New Delhi, Bangalore, Chennai and Hyderabad.

Tier 2 cities in India are those cities that have a higher than average quality of life, but they are not as developed as tier 1 cities. These cities include Kolkata, Ahmedabad, Pune and Lucknow.Tier 3 cities in India are those cities that have a lower than average quality of life. These cities include Surat, Indore, Nagpur and Vijayawada.

Tier 2 cities in India: Advantages and Disadvantages

The real estate market in Tier-2 cities is expected to boom this year, with several major reasons being cited. Some key advantages these cities have over Tier-1 cities are their better connectivity, infrastructure, and affordability.

Moreover, Tier-2 cities offer an excellent opportunity for investors as they are seen as more stable than Tier-1 cities. With rising disposable incomes and population growth, these markets are set to see robust growth this year.

However, some key disadvantages must be considered when investing in these markets. These include lower returns and increased risks due to stricter regulations and volatile capital flows.

Real estate has risen in India’s Tier 2 and Tier 3 cities for the last few years. Many people want to invest in these cities as they see great growth potential.

Tier 2 and Tier 3 cities have a lot of potential because they are growing rapidly, and there is a lot of demand for housing. These cities also have a large population of young people looking for more affordable housing options.

Many real estate investors are interested in investing in Tier 2 and Tier 3 cities because they see great growth potential. These cities are also becoming popular among foreign investors due to the low investment costs and the fast growth rates.

There are many different types of real estate that you can invest in, including residential property, commercial property, and land plots. You can also invest in real estate projects that offer high-yield or low-risk opportunities.

List of tier 1 and tier 2 cities in India

The real estate market in India is expected to boom this year with a total value of Rs. 3,00,000 crore. The growth is mainly attributed to the middle class’s increasing income and purchasing power.

Tier 1 cities in India

As the economy slowly recovers, many people are looking to invest in real estate. And this includes several individuals and companies from tier 1 cities in India.

According to a recent report, the real estate market in tier 1 cities is expected to boom this year. This is because there is a growing demand for luxury properties and affordable apartments.

If you’re considering investing in a tier 1 city this year, do your research first. You’ll need to understand the current market conditions and the available investment opportunities.

Tier 1 Cities

1) Mumbai

2) Delhi

3) Bangalore

4) Hyderabad

5) Chennai

6) Kolkata

7) Ahmedabad

8) Lucknow

9) Pune

10 Shillong

Tier 2 cities in India

Real estate prices in Tier 2 cities have been rising in recent months. Developers and realtors believe the market is ripe for a real estate boom in these cities.

This is because Tier 2 cities are experiencing a surge in population, fueling demand for housing and property. Moreover, many people are moving to these cities for work reasons.

The economic growth in tier 2 cities has been boosted by various factors, including constructing new airports and highways. These measures have also led to a surge in home buying in tier 2 cities. New infrastructure and a wide range of new housing options have also helped the tier 2 cities. The government is also planning to build 25,000 motorways in the fiscal year 2022-23, which will benefit real estate development in the region.

As the number of urban dwellers in India grows, so does the demand for residential property. However, this growth has pushed prices below those of the top-tier cities. Urban planners say there is little difference between these cities and their metro counterparts, and the quality of life and infrastructure in these cities is on par with Tier-1 cities.

Several factors are contributing to the real estate boom in Tier 2 cities. These include rising incomes, increasing employment opportunities, and improving infrastructure conditions.

Tier 2 Cities:

1) Nagpur

2) Aurangabad

3) Kochi

4) Visakhapatnam

5) Thiruvananthapuram

India’s top tier-2 investment cities

2017 has been a year of significant investment opportunities for property investors in Tier 2 cities in India. These cities include Hyderabad, Bengaluru, Pune, and Ahmedabad.

The reason for this is the increasing demand for housing in these cities. The population is growing rapidly, and people are looking to buy property. Additionally, the government is emphasising infrastructure development in these cities. This means more opportunities for businesses and investors to get involved.

Tier cities have always been the hotspots for investment, job opportunities and real estate. The investment landscape in tier-2 cities is also witnessing a change. The reason may be simple – there is an opportunity to make money on both sides of the market.

Per Knight Frank’s report, ten tier-2 cities are expected to account for about 50% of total urban growth in the country this fiscal year. Andhra Pradesh, Gujarat and Karnataka are the top three states in urban growth. With a population of over 1 billion, these three states are expected to witness a CAGR of 11%, 14% and 15% from FY2017-FY2021, respectively.

The report also points out that many tier-2 cities have been witnessing a rise in incomes, increasing the demand for residential property. “In addition, with better access to infrastructures such as airports and other key services, it becomes easier for people to relocate to these places,” said Hemant Jain, Country Head – India Real Estate Research at Knight Frank India.

Uttar Pradesh

Ayodhya in Uttar Pradesh has emerged as one of India’s most promising tier 2 cities. Its property prices are growing faster than in any other city in India, with the city’s potential for growth and business opportunities also being a major plus. There are several reasons to invest in a property in Ayodhya, including affordable property prices, upcoming airports and increasing infrastructure.

The tier-2 cities in India are becoming increasingly popular, with people looking for lower real estate costs and better infrastructure. These cities also offer many benefits, such as low pollution levels, large green spaces, and excellent public transportation. Some of them even have metro rail systems. While some cities are a bit less cosmopolitan than others, they offer the same basic amenities as tier-1 cities.


As we enter the new year, there is a buzz in real estate circles about the prospects for tier 2 cities in Punjab. These cities have been consistently making headlines for their investment potential, and 2017 is expected to be the year of their real estate boom.

Here are some reasons why tier 2 cities in Punjab are poised for a real estate boom in 2017:

1. Low-interest rates – The interest rate scenario in India has seen a lot of volatility over the past few years. Still, one thing that has remained consistent is that low-interest-rate loans are available for real estate investments. This makes it easier for people to borrow money and invest in property.

2. Strong job market – The job market in Punjab is on the rise, and this is good news for property investors. In addition to stable income levels, these cities have plenty of career growth opportunities.

3. Rising home prices – Residential properties in tier 2 cities have been on the rise for some time now, and this trend seems to continue into 2017. Many believe this is due to strong demand from domestic and foreign investors.


The real estate market in Maharashtra is expected to experience a boom this year. Several factors drive this growth, including an increasing demand for housing, a bumper crop and stable economic conditions.

The tier 2 cities of Mumbai and Nagpur are expected to be the most active real estate markets in Maharashtra this year. These cities have a large population base and are well-connected to the rest of the state.

Many people are looking to invest in real estate in these cities because they see great potential. The market is expected to grow steadily over the next few years, so don’t wait to invest in these locations!


With the recent implementation of the Goods and Services Tax (GST), many people are wondering what this will mean for the real estate market in India. So far, the GST has had a positive impact on the economy as a whole, with GDP growth averaging over 7% in 2017.

The real estate market is likely to see even more growth in 2018. This is because the new tax system will make it easier for people to buy and sell the property.

The following are five of India’s top tier 2 cities that are expected to experience a boom in the real estate market:

1. Bengaluru

2. Chennai

3. Hyderabad

4. Mumbai

5. Kolkata


The real estate sector in India is expected to witness a boom this year, with the top-tier cities in Kerala predicted to see the highest growth.

According to a report by property consultancy firm JLL, Kerala’s top tier 2 and tier 3 cities are set to see the highest growth this year. These cities include Kozhikode, Palakkad, Thrissur, and Kochi.

The report stated that the real estate sector is expected to grow by around 8% in these cities this year. This growth is due to increasing demand from both domestic and international investors.

JLL believes that the real estate market in these cities will continue to grow over the next few years as they become more accessible and affordable. The report also stated that these cities have a lot of potential for growth due to their strong economic fundamentals.

2022 real estate in India’s Tier 2 cities

With the increasing population of India, the real estate sector is expected to witness dramatic growth shortly. Tier 2 cities are some of the most promising locations for real estate investment owing to their rapid urbanisation and strong economic prospects.

The following are the reasons why you should invest in Tier 2 cities in India:

1. Rapid Urbanisation: With over 1.3 billion people projected to live in urban areas by 2021, there is tremendous potential for real estate in Tier 2 cities. This growth is fuelled by a growing middle class and increased disposable income.

2. Strong Economic Prospects: The economy of Tier 2 cities is booming, with GDP growth rates consistently outpacing national averages. This means that property prices are high, and there is ample opportunity for investors to make a decent investment return.

3. Low Costs of Living: Tier 2 cities are comparatively affordable compared to other major metropolitan areas. This is due to low housing costs, transportation costs, and a thriving informal economy.

4. Easy Access to Major Cities: Most Tier 2 cities have good links with major metropolitan areas, making it easy for people to commute into the city for work or shopping.

India tier-2 stamp duty rates

Tier-2 cities in India are set to witness a real estate boom this year as the Government has reduced stamp duty rates by 50%. The new rates will be applicable from 1st April 2017.

The new rates will apply to properties up to Rs 2 crore and will be effective from 1st April 2017. The reduction in stamp duty rates has been announced in the Union Budget 2017-18, and it is expected to stimulate Real Estate Sector in Tier-2 Cities in India.

The Government of India has been promoting the real estate sector as an investment avenue for the country. The reduction in stamp duty rates is likely to open up more opportunities for home buyers in Tier-2 Cities, especially those looking to invest in residential property.

The average price of a property in a Tier-2 City is much lower than that of a property in a Tier-1 city. This is because there are fewer restrictions on real estate transactions and development activities in Tier-2 Cities. This is also because these cities have a large population of people looking for affordable housing options.

Tier 2 Indian cities attract real estate investment

With so many new real estate projects being launched in Tier 2 cities across India, it is clear that these cities are poised to witness a real estate boom this year. Here are ten such cities that are expected to see a significant increase in property values this year:

1. Kolkata

2. Chennai

3. Bangalore

4. Hyderabad

5. Ahmedabad

6. Pune

7. Lucknow

8. Mumbai (Bombay)

9. Nagpur

10. Delhi

NRIs drive development in India’s tier 2 and 3 cities.

Tier 2 Cities in India are witnessing a real estate boom, with people from tier 1 and tier 3 cities migrating to these cities in search of better job prospects and lifestyles. The Indian real estate market is seeing steady growth with a significant increase in demand from NRIs owing to the increasing job opportunities and developing infrastructure in these cities.

In tier 2 cities, the demand for residential and commercial real estate is growing rapidly owing to the arrival of companies and entrepreneurs and a population seeking quality of life

beyond rural areas. A recent study by Knight Frank has revealed that tier 2 cities are expected to witness a CAGR of 18% over the next five years.

Several factors contribute to this trend, including the growth of e-commerce and digital services, improved healthcare facilities, expanding infrastructure, rising incomes, and increasing job opportunities. These factors are fuelling investor confidence and driving up demand for real estate in tier 2 cities.

Real estate boom in India’s Tier 2 and Tier 3 cities

Real estate is one of the most popular investment options in India’s Tier 2 and Tier 3 cities. There are many reasons why these cities are favoured for real estate growth.

– Growing population in these cities. The population of these cities is growing at a faster rate than the population of other cities in India. This means that more people are looking to invest in property.

– Availability of land. These cities have a lot of unused lands that can be used for real estate development.

– Good infrastructure. They have well-maintained roads, and they have functional hospitals and schools. These factors make it easier for investors to invest in real estate development projects in these cities.

COVID-19 modified purchasers’ tastes.

Cities are gradually emerging as the preferred investment destinations in India. Tier-1 and Tier-2 cities have seen unprecedented growth in property prices as investors eye these urban centres for their long-term returns. However, this boom is not limited to any particular city; it is now evident in all tier cities across the country.

The change in buyers’ preferences can be attributed to several factors. The rise of digital platforms has made buying and selling real estate more accessible than ever, while the soaring demand for housing has led to steep prices of residential properties. In addition, the recent COVID-19 pandemic has created a sense of urgency among people to buy property before the market reaches a saturation point.

However, there are also a few cautions that investors should consider when investing in property. For example, it is essential to assess the stability of the local government and avoid investing in areas prone to natural disasters or political unrest.

Furthermore, ensuring a solid financial plan before making any investments is essential, as the risks associated with real estate can be very high.

Will tier 2 cities in India attract real estate funds?

According to a real estate report, the Indian real estate sector is poised for a boom in the next few years. The report says that tier 2 cities in India are primed to experience significant growth in real estate prices.

This is due to several factors, including increased population and demand from investors. Tier 2 cities have benefited from a rise in economic opportunities, as well as improvements in infrastructure.

Investors are also increasingly looking for affordable options and locations that offer good lifestyle amenities. These factors are expected to increase demand for real estate in tier 2 cities over the next few years.

Cities – divided into tiers

Cities in India are divided into different tiers based on their economic and social status. These tiers are known as “census towns”, “municipalities”, and “districts”.

Tiers are essential because they dictate the level of government that a city receives. A city in the top tier of a tier system will receive more government funding, better infrastructure, and more development opportunities.

There is a lot of speculation about which cities will be the year of the real estate boom. Some people believe that Mumbai, Delhi, and Bangalore will be the fastest-growing cities in India. Others believe Hyderabad, Kolkata, and Chennai will be the most prosperous cities. It is difficult to predict which cities will experience the most growth, but all of them have the potential to be very prosperous.


Looking to invest in real estate in Tier 2 cities of India? If yes, you should keep an eye on these cities, as 2022 might just be the year their real estate markets start booming.

Some of the reasons for this include:

  • Urbanization: Significant growth has been seen in urban areas across India over the past few years, resulting in a greater demand for housing and commercial space. This increased demand is being met by developers looking to build more high-rise apartments and office buildings in these cities.
  • Infrastructure developments: Several new infrastructure projects are underway or scheduled to be completed in these cities within the next couple of years, including transportation upgrades, expansion of hospitals and universities, and a host of other development initiatives. These projects are expected to boost economic activity and support further growth in real estate prices.
  • Improved financial conditions: The overall economy has improved significantly over the past few years, helping to improve investor sentiment and drive up property prices. In addition, many banks have started offering low-interest rate loans to investors interested in buying property in Tier 2 cities.