Top 10 Emerging Tier 2 Cities in India for Business and Real Estate

Emerging Tier 2 Cities in India for Business and Real Estate Growth

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A dynamic view of India's Tier 2 cities blending old and new architectural styles, showcasing the potential for economic growth and development.

In the backdrop of the changing contours witnessed in the India economic landscape, shifts are now witnessed from the saturated Tier 1 cities to the next wave of urban centers on the upswing. In India, these cities are developing not as Tier 1 but mainly as Tier 2 emerging cities, emerging as new centers of consumerism, real estate, and industry. The new report by Cushman & Weikfield identifies 10 emerging Tier 2 Cities in India as the pivots ready to lead the change. This article explores the Indian destinations that hold excellent opportunities for real estate investment and great business potentials.

North India: Lucknow and Jaipur

Lucknow, the capital of Uttar Pradesh, is emerging as a big economic player. High Population Size Index and solid Population Compound Annual Growth Rate (CAGR) give Lucknow an attractive place of selection for individuals, institutions, and investors examining India economic development opportunities.

The Ease of Living Score of the city is on an upward graph, signifying betterment in healthcare, education, and infrastructure, including Metro expansions. It is one of the best cities to live in India.

Jaipur has witnessed growth in the House Price Index and GDP per Capita Index, as it is very rich in cultural heritage and its tourist places are excellent. Strides in infrastructure, like the metro development, have added Jaipur as one of the largest key players in the expansion of Indian cities.


West India: Surat, Indore, and Nagpur

With this, Surat has emerged in place for diamond polishing and center for growing textiles in Gujarat. Its position in the International & Domestic Air Passenger Index is high, which reflects extended connectivity and the rise of Surat, one of the key cities in India, for increasing real estate markets.

The largest city in Indore, Madhya Pradesh, is a tertiary educational hub where the largest city supports the best living standards, the favorite destination for young professionals and students. This has similarly boosted the real estate market of Indore by sound support from educational infrastructure in the area.


A high Metro Development Index and an extremely strategic location have positioned Nagpur right at the epicenter of India. It forms a part and parcel of the Smart Cities Mission by the government to ensure all-round development in the leading cities to invest in India.

East India: Bhubaneswar and Visakhapatnam

Bhubaneswar, the capital of Odisha, with an impressive Tertiary Education Enrolment Index, burgeons the area for academic and economic activities. The city’s commitment to educational and infrastructural development labels it one of the important areas in regard to infrastructure development in India.

Visakhapatnam uses the site and coastline to buoy its economy. Therefore, having made great strides in industrial and commercial growth, it is earmarked with a high air passenger index and a high industrial base as a second emerging business hub after Hyderabad.

South India: Kochi, Coimbatore, and Trivandrum


Kochi is emerging as a central destination for IT and startups. The reasonably good real estate market includes infrastructure development, like the expansion of the metro, positioning them well within emerging real estate markets in India. Driven by industrial and educational growth and the Ease of Living Score rising from the present level, it will get further impetus for the robust textile and manufacturing-driven local economy. The high score in ease of living and education, together with the fact that Trivandrum is an IT hub, secures good prospects for both residential and commercial real estate, and hence its place among the top cities in India for investing.

Conclusion: These ten Tier 2 cities of India mentioned here are emerging not just like anything but developing with a rich mix of cultural, educational, and economic activity. While the three cities still stand identified as the next frontier in India for businesses and investors, they do little to take away from the standing of these cities in offering fertile ground for growth and investment, which will be a critical part of the Indian economic future.

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