Tier 2 Financial News

The escalating costs of commercial spaces in metropolitan areas have propelled commercial development in Tier 2 and Tier 3 cities. The surge in entrepreneurial endeavours and the demand for budget-friendly spaces have also contributed to this growth, says Mohit Goel, Managing Director, Omaxe Ltd, a prominent real estate player in northern India.

In an exclusive interview, Radheecka Rakesh Garg, Director of Rajdarbar Realty, talks about the growth prospects of commercial realty in Tier 2 and Tier 3 cities and shares her views on the Gurugram market. Excerpts:

«So overall, the consumerism is there. And in tier two and tier three, again it is the mobiles and the televisions which are doing very well,» says Nilesh Gupta, MD, Vijay Sales.I just wanted to get in a perspective in terms of what exactly the outlook is in the tier two and the tier three cities, both in your online and offline stores. How has the offtake been if you compare it with say the metro cities?So basically, we are not there at tier three cities at all, tier two we are there. But then definitely I do get information from the brands and other colleagues at other retailers. So I think India is more or less moving at a normal pace across. So we see there is a good demand in tier two and tier three also. Only thing is what starts moving first in the metros, it takes it may be taking around a little more time to trickle down there. And the effect is there. So overall, the consumerism is there. And in tier two and tier three, again it is the mobiles and the televisions which are doing very well.

We Founder Circle, a platform for angel investors, is wooing high networth individuals (HNIs) from the smaller towns of India into its fold. The community, with 6500 investors last year, has grown to 10,000-plus investors in 2023 indicating that startups continue to be a viable asset class despite the prolonged funding winter worldwide.

India house up to 15% of the Indian tech talent pool and can drive 50% cost savings for India's $245 billion technology landscape, said a report released by Deloitte India and Nasscom on Tuesday. This includes regions like Ahmedabad, Chandigarh, Indore, Jaipur, Kochi, Mysuru, Warangal, Hubli, Madurai, Raipur, Guwahati and Vishakhapatnam among others. The report found talent pool costs are 25-30% lower than those in mature hubs, with 50% cost savings in real estate rentals compared with mature hubs. This economic advantage also makes these cities an attractive choice for growth with lower investments demonstrated by over 140 Global Capability Centres (GCCs) located in these places.

Apple are expanding their workforce in India and are recruiting for talent in places like Hubbali, Dharwad. Apple is not alone, there are many other large multinationals which are hiring in tier-2 and tier-3 cities in India. Focus on new areas such as electric vehicles and electronics manufacturing are driving job opportunities in these regions, staffing firms said.

On opening a National Pension System (NPS) account, the Tier I account gets opened mandatorily. The amount you put into NPS goes into this Tier 1 account as per the allocation decided by you among the various fund options. You can diversify across equity and debt fund options in NPS and the NPS returns will depend on the performance of these fund options.