Know About Tier Cities And Their Classifications

By Author: Anusha Rana
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The government divides tier cities in India into tiers I, II, III, and IV based on several characteristics, including population. To implement various social and economic plans as well as taxes determination. The development of market expansion and other strategic initiatives for business is facilitated by such categorization. The definitions of these classifications, the cities mentioned under various categories, and other topics are covered on this page.
Regarding the categorization of cities, there are two schools of thinking. One divides them into urban, rural, and semi-urban geographies, while the other divides them according to their population and commercial activity. Here's a closer look at how Indian cities are divided into Tier I and Tier II:

What are Tier-I Cities?
The Reserve Bank of India (RBI) categorizes the population of tier 1 cities in India as 1 lakh or more as of the 2001 census. These cities have well-established commercial districts, civic and social facilities, and real estate markets. Their real estate markets are the most expensive in the nation.

Sl No
Tier-I cities
...
... 1
Bangalore
2
Delhi
3
Chennai
4
Hyderabad
5
Mumbai
6
Pune
7
Kolkata
8
Ahmedabad

What are Tier-II cities?
Tier 2 city in India is those with rapidly expanding or developing real estate markets. These are cities with steadily growing infrastructure and investments that have not yet reached their peak levels. With sustained growth, real estate prices typically increase in these markets. Compared to Tier I cities, they are less expensive. According to the RBI's classification, Tier-II cities are those with a population of 50,000–99,999

Sl No
Tier-II cities
1
Amritsar
2
Bhopal
3
Bhubaneswar
4
Chandigarh
5
Faridabad
6
Ghaziabad
7
Jamshedpur
8
Jaipur
9
Kochi
10
Lucknow
11
Nagpur
12
Patna
13
Raipur
14
Surat
15
Visakhapatnam
16
Agra
17
Ajmer
18
Kanpur
19
Mysuru
20
Srinagar

What are Tier-III cities?

According to the RBI classification, tier-III cities are those with a population between 20,000 and 49,999. On the other hand, they are cities with underdeveloped or non-existent commercial and residential real estate markets. For future expansion, they need more excellent infrastructure and investments.
List of Tier 3 Cities in India

The Tier-IIL cities in India are as follows:

Sl No
Tier-III cities
1
Etawah
2
Roorkee
3
Rajahmundry
4
Bhatinda
5
Hajipur
6
Rohtak
7
Hosur
8
Gandhinagar
9
Junagadh
10
Udaipur

What are Tier-IV cities?

The population of Tier-IV cities ranges from 10,000 to 19,999. They are either cities or small villages that demand significant infrastructural expenditures. Additionally, they barely engage in real estate and business.

List of Tier 4 Cities in India
The Tier-IV cities in India are as follows:

Sl No
Tier-IV cities
1
Banswara
2
Bhadreswar
3
Chilakaluripet
4
Datia
5
Gangtok
6
Kalyani
7
Kapurthala
8
Kasganj
9
Nagda
10
Sujangarh

Anusha Rana is a real estate consultant at HonestBroker. Her work mainly focuses on giving the right advice to the buyer and Seller's and how she can improve the growth of real estate in current situation.