Indian cities are classified into tier 1, tier 2, and tier 3 by the government based on their population density. Tier 1 cities are densely populated and have a higher cost of living. There are eight tier 1 cities and they are equipped with sound infrastructure, international airport connectivity, and other amenities. Tier 2 cities, on the other hand, have a population of between 50,000 and 99,999 people. While the population density may be lower, they aren’t too far behind in terms of connectivity and amenities. It is believed that tier 2 cities are in fact, the future of economic growth, especially the real estate market, with more people securing home loans for properties in these cities.
Tier 2 cities are attractive for real estate investments due to the many benefits they offer. From upcoming infrastructure and better connectivity to a more wholesome way to live, are just a few of the reasons people are gravitating to living in tier 2 cities. Many people are looking for good home loan options with favourable home loan interest rates in these cities due to benefits such as lower pollution levels, lower cost of living, low real estate prices and a lower cost of doing business. It helps that many companies are allowing their employees to work remotely, thus freeing them up to choose a better life for themselves.
From the north to the south of India, home buyers have many options to buy property in top tier 2 cities. These are the cities that can be considered as good investments.
- Coimbatore – A large industrial city in Tamil Nadu tops the list of cities to move to. Known for its well-established education system, job opportunities and affordable real estate, makes Coimbatore one of the most sought-after tier 2 cities.
- Indore – A city known to be like the Mumbai metro, offers all the amenities without the pollution, traffic and cost of living. Conducive to small businesses, Indore is teeming with opportunities for real estate investments.
- Chandigarh – One of India’s most well-planned cities, Chandigarh has a lot to offer. From a great network of roads and telecommunication systems to an efficient water supply and waste management system, the city’s affordable housing options are just a bonus.
- Lucknow – The historic city of Uttar Pradesh, Lucknow with its rich heritage, invites students and workers to invest or rent properties. Being India’s first smart city with a metro rail network and great road connectivity with New Delhi makes Lucknow a lucrative choice to invest in.
- Vadodara – A prominent city in Gujarat, Vadodara offers luxury homes at competitive prices, making it an attractive city to invest in.
- Dehradun – The scenic landscape coupled with impeccable civic infrastructure makes Dehradun one of the front-runner cities for people to escape city life.
- Nagpur – Nagpur offers many benefits like a tier 1 city. Benefits that include international airport connectivity, a metro network, robust road infrastructure, and connectivity to Maharashtra and Madhya Pradesh make this city a great option to invest in. The rapid industrial growth is an additional benefit.
- Visakhapatnam – A port, Visakhapatnam is known for its efficient transport system and connectivity to Southeastern Asia. The education system has also been bolstered in the past few years, making it a lush escape from city life. The tax benefits and incentives introduced by the government of Andhra Pradesh are other reasons why people are keen to move here.
It is imperative to find a tier 2 city that suits the lifestyle you are seeking and offers you the comfort that you are used to. It is advisable to visit the place, look at homes and home loan options. A home loan EMI calculator can help you understand the cost of buying a house. Moving to a tier 2 city could improve your life and bring you joy while a home loan will make the entire process easy on your pocket.