Mumbai:
India’s real estate growth story is increasingly moving beyond the traditional
metropolitan markets, with 11 emerging cities recording significantly faster
residential price growth than the country’s top eight cities, according to a
new report by the Confederation of Indian Industry (CII) and Knight Frank
India.
The
report, titled “India’s Next Real Estate Markets,” identifies Bhopal,
Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur,
Visakhapatnam and Coimbatore as emerging markets with strong potential for the
next phase of India’s real estate expansion.
Residential
prices across these 11 markets increased by 63% between 2021 and 2026, compared
with 42% growth across India’s top eight cities — Mumbai, Bengaluru, Delhi-NCR,
Hyderabad, Chennai, Pune, Ahmedabad and Kolkata.
Over the
longer 2016–2026 period, the 11 emerging markets recorded an average
residential price CAGR of 8%, twice the 4% CAGR recorded across the top eight
cities.
The trend
indicates that smaller urban centres are no longer being viewed only as
lower-cost alternatives to major metros. Improving infrastructure,
connectivity, employment opportunities and consumption are increasingly
supporting residential demand in these markets.
According
to the report, the strengthening of economic fundamentals is an important
factor behind the performance of these cities. Growth in infrastructure and
connectivity, a stronger services base, MSME activity and the expansion of
Global Capability Centres (GCCs) are contributing to the broadening of India's
real estate map.
The
report also highlights the increasing importance of infrastructure investment.
Infrastructure expenditure as a share of total government capital expenditure
increased from 39% in FY2015 to 55% in FY2026, supporting greater
private-sector participation and investment.
The
latest findings point to a broader shift in India's property market. While the
top eight cities are expected to remain dominant in terms of overall market
volume, emerging cities are gaining momentum and attracting greater attention
from developers, homebuyers and investors.
For
India's real estate sector, the next phase of growth could therefore be
increasingly shaped by smaller cities and emerging urban corridors, where
infrastructure and economic activity are creating new residential and
commercial opportunities.
The rise
of these 11 markets highlights how India's property landscape is gradually
expanding beyond traditional metros, creating a more diversified real estate
growth story across the country.
By The Realty Times News Bureau
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