Report Identifies 17 Indian Cities as Emerging Real Estate Hot Spots

By 2050, India is expected to have nearly 100 cities with populations exceeding one million, in addition to its eight mega-cities. Colliers, in its latest report “Equitable Growth and Emerging Real Estate Hotspots,” predicts that factors such as infrastructure development, digitization, tourism, and changes in the office landscape will drive the next wave of urban growth. The report identifies over 100 emerging cities in India that will influence real estate demand and growth potential over the next 5-6 years.

The real estate sector in India is undergoing a transformation, with smaller towns becoming vital to the economy due to factors such as infrastructure, affordable housing, skilled labor, and government support. The sector is projected to reach USD 1 trillion by 2030 and potentially USD 5 trillion by 2050, contributing 14-16 percent to India’s GDP. Colliers’ report projects urban growth in about 100 cities with a million population by 2050.

After detailed analysis, Colliers has identified 30 potentially high-growth cities from the universe of 100 plus cities, with the report suggesting that 17 out of these 30 cities will emerge as real estate hot spots. Locations like Amritsar, Ayodhya, Jaipur, Kanpur, Lucknow, and Varanasi are set to benefit from improved infrastructure and rising economic activities, making them attractive destinations for real estate investments. Similarly, Patna, Puri, Dwarka, Nagpur, Shirdi, and Surat are expected to see robust growth driven by various development factors in their respective regions.

The National Infrastructure Pipeline (NIP) and PM GatiShakti projects are critical in driving equitable growth beyond Tier I cities. Enhanced connectivity and manufacturing activities are expected to spur demand across warehousing and residential segments in these emerging hotspots. The shift towards hybrid work models is fueling demand for office spaces in smaller cities, with locations like Coimbatore, Indore, and Kochi witnessing increased interest as satellite office markets.

Increased digital penetration is transforming smaller towns into hubs for data centers and smart infrastructure. Temple towns like Amritsar, Ayodhya, Varanasi, and Tirupati are set to benefit from spiritual tourism, attracting investments in hospitality and retail sectors, catering to growing tourist footfalls. According to Badal Yagnik, CEO of Colliers India, smaller towns are emerging as dynamic contributors to India’s economy, driven by improved infrastructure, affordable real estate, skilled talent, and government initiatives.

Vimal Nadar, Senior Director & Head of Research at Colliers India, pointed out that emerging hubs are on the brink of a transformative boom in both office and residential markets due to the lower rental costs and relative affordability of the housing market. The emerging hotspots are expected to play a pivotal role in driving economic growth and fostering sustainable urban development, with supportive government policies and strategic investments transforming these cities into vibrant centers of economic activity.