In recent years, India has witnessed a significant shift in its commercial growth trajectory, moving beyond the saturated metros to embrace the untapped potential of Tier 2 and Tier 3 cities. With rising urbanization, improved infrastructure, and increased internet penetration, these smaller cities are emerging as new hotspots for commercial expansion. Businesses, startups, and large corporations are recognizing the strategic advantage of tapping into these regions, where operational costs are lower, real estate is more affordable, and consumer aspirations are rapidly evolving. As government initiatives and private investments converge to boost connectivity and local economies, the commercial landscape of Tier 2 and Tier 3 cities is undergoing a transformative evolution — paving the way for decentralized growth and a more inclusive development model across India.
Watch Full Interaction:- Heal Naturally with Ayurveda at Bio Resurge Wellness Center | Shaloo Aeren | Co-Founder
Mr. Hardik Pandit, Director, APICES Studio Pvt Ltd Highlights, with improved roads, new airports, and better internet access, income levels, and the standard of living in tier 2 and 3 cities in India are rising at a rapid pace. The younger population combined with the suburban culture makes these tier 2 and 3 cities appealing for businesses looking to invest in new locations for offices, hotels, and hospitals. With the newfound attention these cities are receiving, there is also demand for advanced simple building designs that blend local culture with modern requirements. All of these factors indicate that India’s smaller cities are the new frontiers of commercial development
Mr. Mukesh Choudhary, Founder of AccuSpace – As India’s growth story expands beyond metropolitan centers, Tier 2 and Tier 3 cities are rapidly emerging as dynamic commercial hubs. The surge in demand for high-quality commercial infrastructure in these regions is driven by rising aspirations, improved connectivity, and an expanding entrepreneurial ecosystem.
To meet this demand, we are investing ₹700 crore in FY26 to develop smart, future-ready commercial spaces tailored to the unique needs of these markets. The focus is not only on functionality but also on sustainability and long-term community value.
Across the industry, there is a growing recognition that these emerging cities will play a defining role in shaping the future of India’s economy. Building the right infrastructure now means enabling inclusive growth, supporting job creation, and strengthening the foundation for regional prosperity. This is more than real estate, it’s about empowering the next phase of India’s urban and economic transformation.
Read more:- Surge in Demand for Holiday Homes as Lifestyle Preferences Evolve
Mr. Harish Fabiani, Chairman, IndiaLand Properties attributed, the high cost of living is driving businesses and investors to explore opportunities beyond Tier-I cities. Thanks to government programs like the Smart Cities Mission and AMRUT, the infrastructure in Tier-II and Tier-III cities has become more conducive to SEZs and IT parks. These regions are also becoming increasingly investment-friendly due to lower operating costs and proposed infrastructure developments. Commercial real estate in these areas is rapidly aligning with global industry trends. Today, more MNCs and Global Capability Centers (GCCs) are seeking flexible leasing options and coworking spaces, prompting developers to respond with suitable designs and pricing models. In fact, Tier-II cities witnessed a 20% increase in leasing activity in 2024, driven by significant growth in the IT, e-commerce, and allied sectors such as warehousing. This indicates a clear shift in investor and consumer preference. Additionally, the growing popularity of sustainable living is pushing developers to adopt green-certified buildings, which command higher rents. As a result, sustainability-driven businesses and investors are increasingly exploring opportunities beyond Tier-I cities.
Follow: InsightConvey
