Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > What are the Different Tiers in Real Estate?

Loan for Home

What are the Different Tiers in Real Estate?

What are the Different Tiers in Real Estate?

The world of real estate is full of technical jargon. As a first-time investor, you will come across many unfamiliar terms, such as ‘real estate market tier’. In simple terms, real estate tiers are categories of certain cities and geographies.

Depending on the phase of their development, you can classify real estate markets into three levels:

  • Tier 1
  • Tier 2
  • Tier 3

Besides the development phase, the size, population, transaction volume, etc., of a real estate market also determines its category. That’s why knowing the tier of real estate becomes a significant point of consideration for homebuyers.

Let’s have a detailed look at the three tiers below.

Tier 1

Tier 1 cities tend to have a well-established and highly developed real estate market. These communities have an excellent infrastructure with a robust economy. So, you can expect a host of services and amenities. These include a good highway system, schools, businesses, and other civic facilities.

Consequently, the prices of homes in Tier 1 markets lie on the steeper side. For many people, availing of a home loan is the most convenient way of purchasing a home in such a location. Some Indian cities in this category are Mumbai, Delhi NCR, Chennai, Kolkata, Bengaluru, among others.

Additional Read: Top Reasons Why Tier-2 Cities Are Worth the Investment

Tier 2

The second tier of cities comprises relatively less developed real estate markets. While the markets are not well-established, Tier 2 cities have incredible growth potential. As such, property prices are comparatively lower than in the Tier 1 markets.

But given their exponential growth curves, such areas attract young professionals, real estate developers, investors, and businesses. Some of the most liveable Tier 2 Indian cities include Agra, Jaipur, Gurugram, Ludhiana, Lucknow, etc.

However, while the cost of living is on the lower side, real estate isn’t cheap in these cities by any means. So, if you’re thinking of buying a house in Tier 2 locations, consider taking a loan to reduce the financial burden and support your purchase. With so many financial institutions offering relaxed home loan eligibility criteria, securing home finance won’t be challenging. 

Tier 3

Tier 3 cities have non-existent or under-developed real estate markets. Property prices are the most inexpensive here, albeit with scarce or limited options. Out of the three tiers, these markets are also the most vulnerable to economic disruption, like a recession. However, Tier 3 markets can be quite promising depending on their locations, and you can easily find attractive home loanoptions to finance the property purchase.  

Additional Read: home loan in jaipur

Parting thoughts

Thinking of purchasing a house? Having second thoughts due to budget constraints? Turn to Tata Capital’s wide range of loan offerings and purchase your dream home in whichever city you want – Tier 1, 2 or 3! With attractive home loan interest rates starting at just 6.90%, you can avail of an amount as high as Rs. 5 crores.

In addition, you can opt for a loan repayment tenure of up to 30 years. Make sure to use our home loan EMI calculator to plan your purchase. Connect today!

Apply For House Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.