Tier-3 cities in India

India’s thriving economy extends beyond its metropolitan hubs to its Tier-3 cities. These locales, though smaller in scale, are significant contributors to the nation’s growth and expansion. The Indian city tier classification system is primarily based on population size. Tier-1 cities include metropolitans like Mumbai, Delhi, and Bangalore, boasting high population density and rapid urbanisation. Tier-2 cities, such as Jaipur, Lucknow, etc., have made substantial strides in infrastructural development, leading to a boom in economic activities. Lastly, Tier-3 cities, which include towns like Shimla or Dehradun, have smaller populations. However, with increasing digital literacy and improving infrastructure, these cities hold immense potential for future growth. This article aims to provide a list and brief insight into the Tier-3 cities in India. These cities, often overlooked in favour of their larger counterparts, play a crucial role in the country’s socio-economic fabric.

See also: Metropolitan cities in India

What are Tier-3 cities in India?

Tier-3 cities in India are essentially smaller, and less-populated urban regions. They are often the last tier in the categorisation of Indian cities. They include cities like Kanpur, Dehradun, Gwalior, etc. These cities are rapidly developing yet lack the hustle and modern facilities of the metropolitans. They offer lower living costs than Tier-1 and Tier-2 cities. These cities are often the target for future development projects and have a high potential for economic growth. However, Tier-3 cities also face challenges like inadequate infrastructure and limited job opportunities.

Number of Tier-3 cities in India

India is a home to a multitude of Tier-3 cities, which play a significant role in the country’s socio-economic development. While there is no definite count, there are hundreds of these cities across 28 states and eight Union Territories.

List of Tier-3 cities in India

Here is a list of some of the Tier-3 cities in India:

• Etawah
• Roorkee
• Rajahmundry
• Bhatinda
• Hajipur
• Kanpur
• Dehradun
• Gwalior
• Rohtak
• Gandhinagar
• Udaipur
• Nashik
• Nagpur
• Mangalore
• Kochi
• Madurai
• Mathura
• Shimla

Real estate trends in Tier-3 cities in India

India’s real estate sector has seen a noteworthy shift, especially in Tier-3 cities. The traditionally underdeveloped real estate markets are now catching up with the larger metros, courtesy of the booming IT sector, improved infrastructure, and increased connectivity. These cities have become the new attraction for real estate developers and investors. Affordable housing is the primary driver in these markets. The Indian government’s aim to provide ‘Housing for All’ has given a significant boost to the real estate sector in Tier-3 cities. Builders are increasingly offering low-cost housing options, making it possible for more residents to own homes.

Another emerging trend is the increasing number of NRIs investing in these cities. Improved infrastructure and promising rate of return on investments are attracting them. Furthermore, the Smart Cities Mission by the Government of India to develop 100 cities across the country has also led to a rise in real estate activities in these areas. Growing job opportunities in sectors, such as IT and e-Commerce are leading to increased migration to these cities. This, in turn, is fuelling rental housing demand.

Another noteworthy trend is the focus on sustainable and green buildings. Developers are integrating green building principles to minimise the environmental impact. All in all, the future of real estate in Tier-3 cities looks promising. The contribution of these cities to the overall real estate sector is set to increase. However, these markets need systematic development and regulatory oversight to ensure balanced growth and avoid the pitfalls experienced by larger cities.

Living in Tier-3 cities in India

Living in Tier-3 cities in India embodies a unique charm and simplistic lifestyle, vastly different from the bustling life of metropolitan cities. These smaller cities, often overlooked in the broader panorama, offer a liveable ambience with less pressure, minimal crowd, and a slower pace of life. The cost of living is relatively low when compared to metro cities, thus providing an economically viable option for many. These cities offer a sense of community that is often lost in the hustle and bustle of larger cities. Here, cultural traditions are valued, and social bonds are stronger. The close-knit community makes it a safe environment, especially for families with children and elderly. This nurturing environment, where neighbours often feel like extended family, adds a wholesome touch to everyday life.

The basic amenities, such as healthcare, education, transportation, and entertainment are available, albeit not as developed or advanced as in Tier-1 or Tier-2 cities. Yet, the peaceful lifestyle coupled with modern amenities makes these cities an ideal place for retirement. Over the years, with government initiatives and digital revolution, Tier-3 cities are showing a promising growth in infrastructure and connectivity. However, just like any other city, living in Tier-3 cities comes with its share of challenges. Limited job opportunities often lead to migration to bigger cities. But, with the rise of remote work and online businesses, this trend might change in future. Overall, life in Tier-3 cities in India is a blend of simplicity, affordability and community living, creating a charming and peaceful lifestyle away from the chaos of metropolitan cities.

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