The workforce shift in India from tier 1 cities to tier 2 cities has been significant. Talking about the cities in the tier 2 category, the cost of living is lower, the work-life balance is better, and housing remains affordable compared to megacities. Although infrastructure developments in the last decade have skyrocketed property prices, tier 2 cities like Noida remain approachable to the workforce. The result of this is that Indian real estate developers and state governments have been more focused on these tier 2 cities in India, which are high-potential and under-promoted markets. In this blog, let’s find out how this trend has affected property in Noida and what growth we expect from its real estate market. 

What Are The Differences Between India’s Tiered Cities?

Indian cities are named X (first-tier cities of India), Y (second-tier cities of India), and Z (third or fourth-tier cities of India) by the government through this classification system that depends on the density of population. While the tier 1 cities, which include metropolitan cities, are more developed, the tier 3 cities are the still-developing cities in India.

property in noida

India has eight metropolitan cities in tier 1, namely Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Ahmedabad, and Pune. At the same time, tier 2 cities cover 104 locations, while the rest are categorized as tier 3 or tier 4 cities.

Capital cities in India are highly populated and have a higher cost of living, which puts a burden on lower-income individuals. There are large international airports, enterprises, top multi-speciality hospitals, and education and research infrastructures located in tier 1 cities. 

Experts in urban planning and economy find that those cities, officially recognized as the tier 2 level in India, are so good that the difference between tier 1 and tier 2 cities is of no significance. The industrialization and lifestyle in cities like Gurgaon, Noida, Vellore, Coimbatore, Kochi, Thiruvananthapuram, Patna, Rajkot, Goa, Lucknow, and Jaipur can propel them to the next tier in the next few years.

What Are The Top Tier-2 Uttar Pradesh Cities?


Noida is among the most preferred real estate investment markets and has been established as a tier 2 city in India. It is well-connected to the capital city and neighbouring NCR regions through the Delhi Metro. It is quite notable that property in Noida comes with affordable rentals and homeownership alternatives for various income groups.


Ghaziabad is not only one of the best options that investors can consider but also shares a similar investor-friendly environment with great connectivity to Delhi. Properties vary from affordable housing to luxurious homes for a range of home buyers.


Home buyers will find themselves looking among the wide range of properties for sale in Lucknow. The city, on the other hand, has an uncompromising infrastructure and offers easy connectivity to other cities.


The days of limited and sporadic transport are gone with the launch of phase 1 of the Kanpur Metro. In short, the city provides enough choices for real-estate investment. The home buyers will be directed to great 2 BHK and 3 BHK units as well.


One of India’s top tier 2 cities is the temple town of Ayodhya. The new international airport being built will see an upsurge in real estate demand as well. 

Home buyers will find some interesting options for properties situated near places like Naya Ghat and Theri Bazar in the city. Within the short radius of the Ram Janmabhoomi temple site, there is unmatched growth that is clearly pushing up property prices. 

Property in Noida To Bolster With Upcoming ‘Japanese’ and ‘Korean’ Cities 

Noida is about to witness a global metamorphosis, when the cities of Japan and Korea will be emulated at the local level. The YEIDA, through the allocation of large swathes of land, has identified two sectors for the development of these industrial cities, including the acquisition of hundreds of hectares.

property in noida

Two cities will be set up near Jewar International Airport, as it will serve to strengthen the connectivity between both Japanese and South Korean businessmen. The plan for the city that resembles Japan is set to take place in Sector 5A of Noida, covering 395 hectares. The Korean town will be built on 395 hectares of land in Sector 4A.

The construction of the two towns would require a project cost of Rs 2,500 crore with the addition of the following amenities, such as housing, schools, and hospitals. Located at a 10 km distance from Jewar International Airport, both of these cities would provide a boost to connectivity through their areas.

In the opinion of experts, the construction of ‘Japanese’ and ‘Korean’ cities close to the Jewar International Airport will contribute to the project’s accessibility to other parts of the country. 

Moreover, with the growing procession of ‘Japanese’ and ‘Korean’ cities, there is a vividly increasing number of housing projects in the area that can be used for accommodating the workforce, thus dramatically speeding up the overall rollout of the projects. In a nutshell, both investors and the residential real estate sector will receive significant benefits from these conducive circumstances.

The new Jewar International Airport will spur a flood of job opportunities, tourism growth, exports and trade, and greatly boost the real estate market.

Considering these favourable developments, homebuyers and investors would be witnessing profitable returns from property in Noida. With major projects brimming on the horizon, we can surely expect Noida to reach new heights in the real estate landscape. 

If investing in a property in Noida or becoming the homeowner of a luxury apartment is your goal, get in touch with one of Noida’s prominent real estate developers – ACE Group. Find out about their latest commercial and residential projects that are simply beyond comparison. 

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