Report | Future Cities

Tier-II Cities Coming of Age

October 18, 2022

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Tier-II cities in India are thriving in the post-pandemic world, led by their growing economic significance, infrastructure development and consequently, improved connectivity and real estate growth. As these cities continue to shine brighter, CBRE has identified the top 10 tier-II cities in India as follows:

  • Chandigarh - One of the earliest ‘planned’ cities of post-Independence India
  • Jaipur - The gateway of tourism in Rajasthan; a part of the ‘Golden Triangle Tourist Circuit'
  • Lucknow - An important centre of governance, administration, education, commerce, culture, tourism, music and poetry in North India
  • Coimbatore - A key commercial hub for textile industries, engineering & manufacturing companies and technology firms in Tamil Nadu
  • Kochi - The second-largest urban agglomeration in Kerala and a key commercial destination in the state
  • Thiruvananthapuram - A key hub for ayurvedic research in the country; known for quality education institutions, technology firms, mineral-based industries, commerce and tourism
  • Visakhapatnam - A key administrative centre and a commercial hub; well-known for heavy industries, ship-building and fishing
  • Ahmedabad -  An important manufacturing and trading hub in western India
  • Indore - The financial capital of Madhya Pradesh and a key education hub in the state
  • Bhubaneswar - An emerging technology and education hub in eastern India

We expect the following key drivers to further accelerate real estate demand in the tier-II cities and have thus explored each of them in this report:

  • Higher land availability
  • Sub-dollar office rentals
  • Affordable cost of living
  • Developing infrastructure and connectivity
  • Entry and expansion of global / domestic retail brands
  • Creation of manufacturing hubs
  • Increasing focus on green spaces
  • Access to skilled talent pool

To navigate through these tier-II cities and to get insights on their real estate dynamics, please click the download button.