Coimbatore, Mysuru, Bhubaneswar emerge as India’s new Tier II commercial hubs

As India’s commercial landscape evolves, Coimbatore, Mysuru, and Bhubaneswar are rapidly emerging as key Tier II hubs, attracting companies and startups alike.

Driven by a shift away from traditional metros like Bengaluru, Mumbai, and Delhi-NCR, these cities offer significant advantages. Leasing costs are 30-50% lower than in Tier I cities, making them attractive for businesses seeking cost efficiency.

The pandemic accelerated this trend through a wave of reverse migration, with professionals relocating to Tier II and III cities for safety, affordability, and better work-life balance.

Startups are flourishing here, with 50% of India’s startups now originating from Tier II and III cities, many in IT and allied sectors. This shift signals a decentralization of India’s economic growth and a broadening of its innovation ecosystem.

Industry experts note that these cities are not just cost-effective alternatives but are becoming vibrant commercial centers with growing infrastructure and talent pools.

"As companies look beyond traditional metros, cities such as Coimbatore, Mysuru, and Bhubaneswar are emerging as promising growth destinations," analysts say.

This trend is expected to continue, reshaping India’s urban economic map and offering new opportunities for investment and development outside the established Tier I metros.

Coimbatore, Mysuru, and Bhubaneswar are emerging as India’s new Tier II commercial hubs as companies move beyond traditional metros. With 50% of startups now from Tier II and III cities, lower leasing costs, and pandemic-driven reverse migration, these cities offer promising growth opportunities in IT and allied sectors.