Trend

Small town blues

Soaring real estate costs make companies rethink their expansion into tier 2 cities, for now

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Till just about a year ago, cities such as Jaipur and Ahmedabad were building a reputation not just as must-see destinations for tourists but also as business hubs for large companies. These secondary cities, along with others like Bhubaneswar and Chandigarh, were the toast of IT, ITeS and financial services companies as they expanded back-end operations here to take advantage of lower rentals and a more affordable local workforce.