In regards to characterizing cities in terms of infrastructure, land usage and commercialization, we hear a lot about Tier 1, Tier 2 and Tier 3 cities.

As the term ‘Tier 1 city’ normally refers to the main popularized cities, individuals still wonder what precisely Tier 2 and Tier 3 are all about? Historically, tier 1 cities are known for providing better infrastructure, job opportunities, better education and advanced health facilities. Take cities such as Mumbai, Delhi, Bangalore, Pune, Hyderabad, Ahmedabad, Chennai and Kolkata for example. Young people from tier 2 & 3 cities usually migrate to these tier 1 cities in search of better education, career prospects and become permanent citizens henceforth. But currently, many of these tier 1 cities are either getting overcrowded and running out of necessary resources due to which reverse migration has started taking place.

According to a research done by, 78% out of 2272 participants want to shift out of metros due to ‘high level of pollution’. While 58% cited ‘high cost of living’, the rest 48% cited ‘high cost of buying a house’ as the prime reasons to move out of tier 1 cities.

Now the question arises – why would an individual want to move back to tier 2 & 3 cities despite knowing the fact that these cities won’t be able to provide the similar opportunities and living standards as tier 1 cities or has the clock already started ticking in other ways to prove this assumption wrong? Let’s find out.

What are Tier 2 & Tier 3 cities?

When it comes to defining them, they are a step below the tier 1 cities in terms of development. All necessary commodities – starting from education to healthcare have limited availability. It’s obvious for young people to move out of these cities in search of better financial sustenance once they finish their education. But what makes the difference is the endless number of natural resources.

Tier 1 cities are currently bombarded with development. Along with prosperity and development, it has also bought many negative aspects with it such as congestion in every sphere of life and saturation in every sector of business. Industrialization and the real estate sector are facing the brunt to a greater extent for the following reasons- 

  • Rising prices in the real estate sector
  • Lack of space
  • Rising competition
  • Lack of resources
  • Environmental threats and opposition from related communities

This is where the Tier 2 and Tier 3 cities turns into an alternative option for the organizations to spread their operations.  Some of the notable tier 2 cities in India are as follows – Bhubaneshwar, Surat, Jabalpur, Tumkur, Ahmedabad and Visakhapatnam.

Let’s look at the advantages

Availability and Affordability

Some of the fundamental reasons for which investments are concentrating on smaller cities are – accessible properties and affordable costs. In addition, government has started taking great initiatives to develop the infrastructure of these areas. For example, the smart city project that aims at making these cities self-sustainable. This initiative concentrates on the following aspects

  • Efficient usage of land.
  • Housing opportunities for all. For example, Swarna Griha comes under the same scheme known as PMAY.
  • Develop open spaces
  • Reduce man-made stress factors such as pollution and traffic congestion
  • Bring variety in transport system
  • Bring accountability and transparency in all government initiatives

Apart from all these reasons, smaller cities provide better option for financial stability since the expenses are very low in comparison to tier 1 cities. Everything from house rent to food are available at reasonable prices. And for the same reason, a reverse migration is slowly happening from the tier 1 cities. That means productive and skillful people have slowly started giving a second thought about establishing themselves in the tier 1 cities.

To sum it all together, tier 2 & 3 cities would be the next hub of development in India. As an ever increasing number of organizations are investing in these cities and the fundamental quality of life is progressing towards a positive and inviting change.

The act: Tumakuru is becoming one of the significant real estate hotspots on the outskirts of Bangalore. Because of a few components like flyovers, freeways and other uber framework extends, the city can possibly change into a mega industrial smart city. This change gives new and diverse options to employees working in industries, medical centers, educational institutions and different fields of work.

Read our blog to know more about ‘How Tumakuru is transforming into a smart city?’