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.
Related News Articles
JK Tyre Boosts Commercial Vehicle Presence in Maharashtra with New Brand Shop
JK Tyre & Industries expands its retail footprint with the launch of its 12th brand shop for commercial vehicles in Maharashtra
The Rise of Luxury Living: Branded Residences in India
India's affluent population is driving the demand for luxury living, and branded residences are becoming increasingly popular.
Apply Now for Law Clerk-Cum-Research Assistant Position at UP-RERA
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) is seeking qualified candidates for the position of Law Clerk-Cum-Research Assistant. Applications are due by October 15, 2024.
Blox Acquires 11% Stake in Guardians for $12 Million
Digital real estate platform Blox acquires 11% stake in Guardians, aiming to become India's largest real estate seller.
Mahindra Lifespaces Secures ₹950 Crore Deal for Redevelopment of Three Mumbai Housing Societies
Real estate developer Mahindra Lifespaces has announced a significant 950-crore deal to redevelop three housing societies in Mumbai, marking a major milestone in the company's urban rejuvenation efforts.
Goa's Real Estate Market Surges with Impressive Earnings
The Goa Real Estate Department has reported a significant boost in earnings, reaching Rs 13,439.5 crore, as detailed in the Goa Economic Survey 2024-25. The boom in real estate is attributed to various factors, including increased investment and developme