Emerging Cities in India: The Next Wave of Real Estate Growth
India's emerging cities are set to drive the nation's growth trajectory, with 17 cities expected to witness accelerated real estate growth across three or more asset classes.
Real EstateEmerging CitiesIndiaInfrastructure DevelopmentDigitisationTourismReal EstateJun 18, 2024
Colliers identified and evaluated over 100 emerging cities to determine their real estate attractiveness and growth potential over the next 5-6 years in its latest report 'Equitable Growth and Emerging Real Estate Hotspots'. This detailed analysis aided in identification of 30 potentially high growth cities from the universe of over 100 cities where real estate development is set to strengthen in the medium to long term. Interestingly, 17 of these 30 high-potential cities are expected to witness accelerated real estate development across three or more asset classes.
The growth of e-commerce will facilitate the expansion of online retail platforms, leading to the development of fulfilment centres, warehouses, and distribution hubs in strategic locations. Additionally, the surge in data consumption will drive the development of data centres and smart infrastructure in these emerging cities, which will enhance the overall attractiveness of these towns for real estate investments.
Infrastructure growth will remain a key catalyst for real estate development across India. Enhanced connectivity and increased manufacturing activity driven by flagship infrastructure projects under National Infrastructure Pipeline (NIP) and PM GatiShakti will lead to the dispersion and expansion of growth centres beyond Tier I cities. This will significantly boost the economies of smaller towns, triggering real estate activity across warehousing and residential segments particularly.
Bolstered by government policy support and infrastructure developments, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India. Upgrades in infrastructure and enhanced connectivity through improved roads, flagship trains and new airports have the potential to attract organised real estate players to these spiritual destinations in the long term, specifically across hospitality and retail segments.
The top 17 high-potential cities in India include Amritsar, Ayodhya, Kanpur, Lucknow, Jaipur, Varanasi, Coimbatore, Kochi, Tirupati, Visakhapatnam, Patna, Puri, Dwarka, Nagpur, Surat, Shirdi, and Indore.
Frequently Asked Questions
What is driving the growth of emerging cities in India?
Key factors such as infrastructure development, digitisation, tourism, and changes in the office landscape will drive the next wave of urban growth across these locations.
How many cities are expected to witness accelerated real estate growth across three or more asset classes?
17 cities are expected to witness accelerated real estate growth across three or more asset classes.
What is the impact of infrastructure growth on real estate development in India?
Infrastructure growth will remain a key catalyst for real estate development across India, leading to the dispersion and expansion of growth centres beyond Tier I cities.
What is the role of spiritual tourism in the growth of emerging cities in India?
Bolstered by government policy support and infrastructure developments, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India.
Which cities are expected to witness heightened digitisation driven real estate activity?
Jaipur, Kanpur, Lucknow, Nagpur, Patna, Surat, and Visakhapatnam are expected to witness heightened digitisation driven real estate activity.
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