Pros and Cons of Living in Tier 1 and Tier 2 Cities

Home By Sangati Jogwar January 10, 2023

Cities offer more career and education opportunities to youngsters. From medical facilities to lifestyle, an urbanite life is much better than a town or village life. And that is why more and more people are settling in big metros and cosmopolitan cities. While some cities are developed the other are developing and some more are yet to catch on with the concept of urbanite living.

Here is a classification of different cities based on different tiers. Depending on several factors, the cities in India are categorized as follows:

Tier 1 cities
Tier 2 cities
Tier 3 cities
Tier 4 cities

What are Tier 1 Cities?

According to the Reserve Bank of India, as per the 2001 census, those cities with a population of 1 lakh or more with well-developed real estate markets, developed infrastructure, facilities, and schools are classified as tier 1 cities. Examples of tier 1 cities in India are:

Bangalore
Delhi
Chennai
Hyderabad
Mumbai and
Pune

What are Tier 2 Cities?

The Reserve Bank of India says that cities with a developing or fast-growing real estate market where investments and infrastructures are increasing without hitting peak levels, with a population of 50000-100000, are classified as tier 2 cities. Tier 2 cities are cheaper as compared to tier 1 cities. Examples of tier 2 cities in India are:

Nagpur
Bhopal
Bhubaneswar
Chandigarh
Faridabad
Amritsar

What are Tier 3 Cities?

According to the Reserve Bank of India, those cities with a population of not more than 20,000-50,000 that require more investment and development of infrastructure for their future growth are classified as tier 3 cities. Examples of tier 3 cities in India are:

Bhatinda
Udaipur
Gandhinagar
Junagadh
Roorkee
Hajipur

What are Tier 4 Cities?

Those cities with a population of not more than 10,000-20,000 that have little or no business infrastructure and require facilities to grow are classified as tier 4 cities. Examples of tier 4 cities in India are:

Nagda
Kalyani
Sujangarh
Bhadreswar
Kapurthala
Banswara

Pros and Cons of living in Tier 1 & Tier 2 cities

Let us compare the expenses, cost of living, and entertainment facilities of tier 1 and tier 2 cities.

Cost of living

The cost of living in Tier 1 cities like Mumbai is very high whereas in comparison Tier 2 cities offer better living facilities at almost half the price. For example, in a Tier 2 city, it is possible to get a good apartment or a flat in the heart of the city at just Rs 1 crore to 1.5 crores. But in Mumbai or Bengaluru the same will cost at least 15 to 20 crores.

Quality of life

Traffic jams, and long office and school distances make every working day of a Tier 1 city dweller very hectic. On the other hand, employees and students in Tier 2 cities can reach their destinations usually within a span of 15 to 30 minutes. Less traffic also makes it easier for the traveler to reach the destination quickly.

Importantly, the cost of all the groceries and other food items of daily needs in metro cities are very high whereas in Tier 2 cities they are considerably low.

Less traffic means low levels of pollution. So when it comes to quality of life Tier 2 cities are way ahead of Tier 1 cities. Albeit Tier 1 cities offer better infrastructure, hospitals, hotels, multiplexes, education facilities, and more as compared to Tier 2 cities. So in that sense, you gain some and lose some whichever city you choose.

Better Opportunities

Today youngsters want to grow and earn better packages and enjoy a lavish lifestyle. That is something that they can achieve only by being in Tier 1 cities because Tier 2 cities are still in the developing stage and it will take them at least 10 years more to reach where the Tier 1 cities have reached development and opportunity-wise.

Source