Tier 2 cities in India are attracting real estate investors. Some of the top emerging cities, such as Surat, Lucknow, and Jaipur, have high growth potential due to better infrastructure and lower living costs. Ayodhya and Puri are gaining importance due to their increasing religious significance.
India’s tier 2 cities are quickly becoming excellent real estate investment destinations. These cities are small in comparison to metropolitan areas such as Mumbai, Delhi, and Bangalore, but they hold great promise for growth and development in 2025. Emerging economies with improved infrastructure at lower costs, combined with rapid urban development, are attracting more investors to Tier 2 cities.
Metro cities have been plagued by overcrowding, rising prices, and traffic jams. Tier 2 cities in India, on the other hand, offer low-cost housing, excellent infrastructure, and even a higher standard of living. Many tier 2 cities are experiencing rapid growth, with numerous new businesses, housing projects, and facilities being built, making them an excellent choice for real estate investments in 2025.
Best Tier 2 Cities in India To Invest In
Let’s take a look at some of India’s top tier-2 cities where real estate investment is a viable option.
Surat
Surat, also known as the “Diamond City of India,” is one of India’s fastest-growing tier-two cities. It is well-known for its economy, which is based heavily on the diamond and textile industries. Surat has grown into an economic hub, attracting a lot of attention from investors. It is well connected by road, rail, and air, making travel and business convenient for everyone. As a result, it is now one of the most accessible tier-2 cities in the country for investors.
The city has combined modern technology with low-cost living, making it a popular choice among real estate investors in Surat.
Property Rates in Surat
| Type | Average Area in Sq. ft. | Average Sale Price | Average Rent |
| 2 BHK | 1200 | Rs 38.7- 48 Lakh | Rs 15,000 – Rs 25,000 |
| 3 BHK | 2000 | Rs 75 Lakh | Rs 25,000- Rs 45,000 |
Facilities in Surat
| Facilities | Names Key |
| Educational Institutes | Namah IIT Neet AcademyMatrubhumi VidyasankulSunrise VidyalayaRadheyshyam English School |
| Hospitals | Mahavir HospitalBaps Pramukh Swami HospitalUdhna Hospital Pvt. Ltd.Kiran Multi Super Speciality Hospital |
| Transportation | Surat Railway StationSurat Central GSRCTC Bus StationSurat Airport |
| Shopping Centres | VR Mall SuratRR MallReliance MallCentral Mall |
Lucknow
Lucknow, Uttar Pradesh’s capital, is one of India’s fastest-growing tier 2 cities. Lucknow, also known as the City of Nawabs, is quickly emerging as an education, culture, and business hub, making it an appealing destination for investors.
It has modern infrastructure, affordable housing, and new retail spaces are being developed. Lucknow, as one of the top two cities to invest in, will attract both business and real estate investors.
Property Rates in Lucknow
| Type | Average Area in Sq. ft. | Average Sale Price | Average Rent |
| 1 BHK | 600 | Rs 35 Lakh | Rs 5,000 – Rs 12,000 |
| 2 BHK | 800- 1200 | Rs 45 Lakh to 70 Lakh | Rs 10,000- Rs 20,000 |
| 3 BHK | 1700 | Rs 85 Lakh | Rs 15,000- Rs 30,000 |
Facilities in Lucknow
| Facilities | Names |
| Educational Institutes | Birla Open Minds International SchoolG.D. Goenka Public SchoolCathedral Senior Secondary SchoolSeth MR Jaipuria School |
| Hospitals | Nova HospitalMax Super Speciality HospitalApollo Hospitals Pvt. Ltd.Dr. KNS Memorial Hospital |
| Transportation | Lucknow Junction Railway StationAlambagh Bus StationChaudhary Charan Singh International Airport |
| Shopping Centres | Phoenix United Mall Sahara Ganj MallLulu MallFun Republic Mall |
Jaipur
Jaipur, also known as the “Pink City,” is one of the most popular tier-two cities in India for real estate investment. Rajasthan’s capital is known for its rich culture, historical monuments, and vibrant street shopping, making it a popular tourist and investment destination. Its location on the Delhi-Mumbai Industrial Corridor has propelled it to prominence, with strong industrial and trade ties to the city. Its convenient road, rail, and air connectivity makes it ideal for both business and leisure travellers.
Property Rates in Jaipur
| Type | Average Area in Sq. ft. | Average Sale Price | Average Rent |
| 2 BHK | 800- 1200 | Rs 22.5 Lakh to 80 Lakh | Rs 10,000- Rs 20,000 |
| 3 BHK | 1392- 2200 | Rs 50 Lakh to Rs1.69 Cr | Rs 15,000- Rs 30,000 |
Facilities in Jaipur
| Facilities | Names |
| Educational Institutes | Jayshree Periwal High School, Chitrakoot SchemeNeerja Modi School, MansarovarMaharani Gayatri Devi Girls School, Sawai Ram Singh RoadRainbow School, Jhotwara |
| Hospitals | Manipal HospitalRungta HospitalShalby Multi-speciality HospitalsRukmani Birla HospitalFortis Escorts Hospital |
| Transportation | Jaipur Junction Railway StationSindhi Camp Bus StationJaipur International Airport |
| Shopping Centres | World Trade Park Triton MallMGF Metropolitan MallPink Square Mall |
Ayodhya
Ayodhya, one of India’s best tier 2 cities and the birthplace of Lord Ram, is undergoing significant transformation through large-scale infrastructure and development projects. The government’s primary focus on establishing Ayodhya as a global religious tourism hub has boosted real estate investment and growth.
Improving roads, a new airport in development, and increased rail connectivity make the city much more accessible. This makes Ayodhya one of the best tier 2 cities to invest in.
Property Rates in Ayodhya
| Type | Average Area in Sq. ft. | Average Sale Price | Average Rent |
| 1 BHK | 690 | Rs 23 Lakh | Rs 6,000 |
| 2 BHK | 1000 | Rs 90 Lakh | Rs 20,000 |
| 3 BHK | 1500 | Rs 1.25 Cr | Rs 15,000 |
Facilities in Ayodhya
| Facilities | Names |
| Educational Institutes | DAV Public SchoolVidya International Academy SchoolInnovative Minds Academy SchoolGlobal Wisdom School of Education |
| Hospitals | Shri Ram HospitalAyodhya Eye HospitalMaruti Hospitals Pvt. Ltd.Awadh Medical Centre |
| Transportation | Ayodhya Junction Railway StationNew International Bus StationMaharshi Valmiki International Airport |
| Shopping Centres | Mall of Awadh Phoenix Market City MallKPM MallDugoo Mall |
Puri
Puri is one of the few tier two cities in India that can be referred to solely as “Temple City.” It is famous not only for the Jagannath Temple but also for its many beautiful beaches, making it one of the most important sanctuaries for both religious and general tourism. The city is quickly catching up in terms of improved infrastructure, good roads, new hotels, and so on.
The real estate market is rapidly expanding, with many people planning to invest in hotels, commercial properties, and residential homes. Today, its low prices, combined with rising tourist arrivals, make it one of India’s best tier-two cities for investment.
Property Rates in Puri
| Type | Average Area in Sq. ft. | Average Sale Price | Average Rent |
| 1 BHK | 600- 900 | Rs 20- 24 Lakh | Rs 5,000 |
| 2 BHK | 800- 1200 | Rs 85 Lakh | Rs 6,000- Rs 12,000 |
| 3 BHK | 1700 | Rs 45 Lakh- 1.25 Cr | Rs 15,000- Rs 60,000 |
Facilities in Puri
| Facilities | Names |
| Educational Institutes | Sai Smart SchoolBlessed Sacrament High SchoolVenkateshwar English Medium SchoolKendriya Vidyalaya |
| Hospitals | E-24 HospitalNangal Cancer HospitalManipal Hospitals Pvt. Ltd.Apollo Hospital |
| Transportation | Puri Junction Railway StationPuri Bus StationBiju Patnaik International Airport, Bhubaneshwar |
| Shopping Centres | D N Regalia Mall BMC Bhawani MallNexus Esplanade One MallBrand House Mall |
Conclusion for Tier 2 Cities to Invest in India.
Tier-2 cities in India have evolved into high-potential investment destinations, such as Surat, Lucknow, and Jaipur, where affordable living meets modern development and strong growth potential. Other cities include Ayodhya and Puri, which combine external factors such as cultural and religious significance with internal ones such as infrastructure development.
In general, these cities strike a balance between economic opportunity and higher quality of life. Real estate investors are drawn to tier-2 cities for their high returns and long-term benefits. Investing in these tier 2 cities may be a wise decision in 2025.
