Tier 2 Dreams ✨
The OG Tier 1 hustlers are gonna hate me for saying this - Tier 2, and Tier 3 cities are gonna become backbone of our economy soon.
Apart from not needing the GPS, they have made the hustle culture cool again👩🏻💻. I am gonna call them Baazigar cities . You'll know soon 😅
52% of the total sales of Adult Toys are made from the Tier 2 and Tier 3 🤤. At least someone is having fun 🤷🏻♀️ while most of us spend rest of our life in local trains (now metro).
Not only this, the general e-commerce growth is also being powered by the users of these cities (duh!). In 2022, more than 6 out of 10 orders were shipped for buyers in tier 2 and beyond cities.
Today, these cities have become the hub of startups and other creative businesses. Nearly 50% of recognised startups are operating from non-metro cities. Indore, Surat, Jaipur, and Patna have witnessed an incredible economic growth rate of more than 40% 🙀
But why? Well, the rent, operational costs in metro cities are way too much and remain unaffordable for bootstrapped startups. Plus, the initial cost and hiring talents is much cheaper in tier 2 and 3 cities and is eager to prove themselves. This is an absolute win win.
The main reasons for improved businesses include:
- Rising digitization and better connectivity
- Enhanced consumer appetite
- Supportive government policies that incentivize young entrepreneurs and startup ecosystems
Better Property Bazaar
Homebuyers are interested in investing in Tier 2 and 3 cities more than ever. Lucknow, Chandigarh, Amritsar, Jaipur, Indore, Goa, Kochi, Guwahati, etc., are to name a few. There are just 8 tier 1 cities and 103 Tier 2 cities. Clearly, there is ample room for everyone to have bigger homes and cleaner air.
Plus, here the rental yield can go as high as 12-15% for commercial properties and 5-7% for the residential sector.