Tier - II

I. Tier-II Cities on the Horizon

  • Growing significance in India's economic landscape.

  • Contributes to over 60% of India's GDP with only 3% of land area.

  • Expected urbanization rate to reach 50% by 2050, adding 416 million people to cities.

II. CBRE's Top 10 Tier-II Cities in India

  1. Chandigarh - Tricity

  2. Jaipur

  3. Lucknow

  4. Coimbatore

  5. Kochi

  6. Thiruvananthapuram

  7. Visakhapatnam

  8. Ahmedabad - Twin City

  9. Indore

  10. Bhubaneshwar

III. Factors Driving Growth in Tier-II Cities

  • Infrastructure Development: Increased investment from government and private sectors.

  • Business Expansion: Multi-national companies exploring cost-effective real estate and skilled labor in these cities.

  • Workforce Development: Rising educational institutions nurturing talent aligned with technology needs.

  • Government Initiatives: Programs like 'Smart Cities Mission' improving infrastructure and quality of life.

  • Start-up Ecosystem: Emerging start-ups in IT, healthcare, and finance creating job opportunities and diverse talent.

IV. Market Dynamics

  • Office Market Trends: Shift from traditional to modern office parks in smaller cities.

  • Occupier Interest: Increasing absorption rates, especially from technology firms and flexible workspace operators.

  • Employment Sector Growth: Rising demand in IT, e-commerce, and service industries.

V. Future Prospects**

  • Increased Investment: Over USD 1.7 trillion planned for infrastructure through 2030 to boost economic conditions.

  • Enhanced Living Standards: Government efforts to foster a vibrant public environment to attract residents and businesses.

  • Talent Retention: Focus on creating conditions for skilled professionals to live and work in Tier-II cities.

  • Summary: As Tier-II cities evolve as emerging economic hubs, they play a crucial role in balancing growth across India, supported by improved infrastructure, a talented workforce, and favorable government policies.