Top Tier 2 Cities to Invest in Plots in North India
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Top Tier 2 Cities to Invest in Plots in North India

by Godrej Properties Limited



Tier 2 cities in India

Tier 2 cities in India, often recognised as emerging urban centres, hold considerable appeal from a real estate investment perspective. These cities, experiencing substantial growth and urbanisation, present lucrative opportunities for people looking to buy houses, plots, apartments, etc. The evolving infrastructure and a lower cost of living than in Tier 1 cities attract real estate companies and homebuyers alike. As economic activities surge, real estate in Tier 2 cities becomes a focal point for residential, commercial, and industrial investments, contributing significantly to the nation's real estate landscape. People keen on buying homes or investors wanting to diversify portfolios often find these cities promising.

Real Estate Investments in Tier 2 Cities in India: Advantages and Disadvantages

Real estate or property investments always have their own set of advantages and disadvantages, regardless of region, market trends, economic conditions, etc. Thus, making an informed decision is always advisable. Here is a list of the advantages and disadvantages of making real estate investments in Tier 2 cities in India.


  • Lower property costs compared to Tier 1 cities.
  • High growth potential leads to substantial property appreciation.
  • Emerging economic activities attract businesses and foster job creation.
  • Urban amenities with a lower cost of living provide a balanced lifestyle.


  • Less established infrastructure compared to Tier 1 cities.
  • Requires careful evaluation of growth potential against existing challenges.
  • The evolving landscape introduces a mix of risks and rewards, demanding strategic investment decisions.

Tier 2 Cities in India Attracting Property Investments

Ghaziabad: Known for its thriving industrial developments and employment opportunities, Ghaziabad has witnessed a significant upswing in real estate.

Ahmedabad: With a growing industrial sector and infrastructure projects, Ahmedabad has become an investment hotspot.

Chandigarh: A well-planned city, Chandigarh continues to attract real estate investments due to its strategic location and urban development.

Will Tier 2 cities in India attract Real Estate Funds?

Yes, Tier 2 cities in India have been increasingly attracting real estate funds in recent years. Here’s why:

Growth Potential: Tier 2 cities exhibit significant growth potential, making them attractive for real estate investments. Investors seek areas with expanding economies and increasing urbanisation.

Affordability: Affordable real estate in Tier 2 cities compared to Tier 1 cities makes them appealing for real estate funds looking for affordable investment opportunities.

Government Initiatives: Government initiatives and infrastructure development projects in Tier 2 cities further enhance their investment appeal, creating a conducive environment for real estate funds.

Rising Demand: The demand for residential, commercial, and industrial spaces in Tier 2 cities has risen, driven by population growth and economic development.

Frequently Asked Questions

1. What are the top cities to invest in land/plots in North India?

Answer: Selecting the top cities for land or plot investments in North India involves considering factors like economic growth, infrastructure development, and potential for appreciation. For profitable real estate investments, you may consider Gurgaon, Noida, Amritsar, etc. in North India.

2. What are Y cities in India?

Answer: Tier 2 cities in India are referred to as "Y” cities. Currently, there are 99 “Y” cities in India.

3. What are Tier 1 and Tier 2 cities?

Answer: Tier 1 cities, such as Delhi and Mumbai, are prominent economic hubs, characterised by size and advanced development. On the other hand, Tier 2 cities like Agra and Indore, emerging with growing urbanisation, play a substantial role in a nation's economic progression.

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