Emerging Indian Cities: A New Era of Commercial Real Estate Growth
Nine emerging Indian cities, including Bhubaneswar and Guwahati, now boast a combined commercial real estate economy of nearly Rs 10 lakh crore, driven by cost savings and robust talent pools.
Commercial Real EstateEmerging CitiesCost SavingsTalent RetentionInfrastructureReal Estate MumbaiNov 10, 2025
In the east, Bhubaneswar has emerged as one of India’s most progressive smart cities, anchored by a strong education ecosystem including IIT, AIIMS, and NISER. High livability, safety, and governance rankings strengthen its appeal to occupiers and investors. In the north-east, Guwahati functions as the economic gateway to the remaining northeastern states and the India-ASEAN trade corridor. Strong infrastructure expansion through Bharatmala highway projects, airport expansion, and logistics parks at Amingaon and Changsari, supported by Assam’s Industrial and Investment Policy, attracts warehousing, FMCG, and e-commerce operators. The city’s regional logistics hub status drives grade A warehousing and organised retail absorption.
From the northern region, Jaipur and Lucknow are witnessing exceptional corporate traction. Jaipur, historically a hub for tourism, jewellery, and garment industries, has evolved into a technology destination with major IT companies. The city’s improved connectivity through its international airport and the new Delhi-Mumbai Expressway, combined with its robust talent pool from coaching hubs and fresh graduates, positions it for strong growth across residential, retail, and warehousing sectors.
Lucknow, as Uttar Pradesh’s capital, leverages infrastructure to attract industrial investments, including defence manufacturing. The city anticipates robust commercial inventory over the next 3-4 years. The formation of a State Capital Region (SCR) encompassing Lucknow and five adjoining districts, modelled on Delhi's NCR, will drive unprecedented growth.
Coimbatore, dubbed the “Manchester of South India,” stands as the state’s second-largest city by GDP, manufacturing, and IT output after Chennai. This fast-growing Tier-II destination offers immense talent availability across sectors while maintaining the safest environment for women employment. The city’s rapid infrastructure development includes metro rail, outer ring road, and smart city initiatives, supported by the state’s latest approved master plan. Its strengths in hospitality, education, medical tourism, and manufacturing create a comprehensive business ecosystem.
Kochi demonstrates unique connectivity advantages with all transportation modes, including India’s first trans-shipment facility at Vallarpadam Terminal. As India’s primary internet gateway hosting international undersea cable systems, Kochi provides high-speed connectivity at lower operational costs. The world’s largest electric boat metro system and Phase 2 metro rail construction connecting the CBD to Infopark underscore its infrastructure leadership.
Nagpur in the west established itself as a strategic business destination by delivering a unique combination of competitive advantages that directly address corporate priorities. The market offers competitive real estate pricing that significantly reduces operational overhead while providing access to abundant talent pools that can be sourced with greater ease than in saturated metro markets. The data reveals a compelling value proposition: companies achieve 25-50% savings across real estate, talent, and operational costs compared to established markets, while experiencing attrition rates up to 15% lower than metro counterparts.
This translates to immediate bottom-line impact for businesses seeking operational efficiency and talent retention. “Our client discussions have fundamentally shifted from cost savings to business priorities like operational resilience and attracting top talent. Companies now recognise that the enhanced quality of life in these cities is a key differentiator for attracting and retaining employees, as evidenced by attrition rates that are up to 15% lower. Paired with 20-35% in talent cost savings, the business case is undeniable. This directly fuels demand for Grade A, ESG-compliant commercial spaces and integrated townships. For any business serious about long-term growth in India, a presence in these hubs is now essential,” said Bihani.
JLL India chief economist and head of research and REIS Samantak Das added, “This is a structural rebalancing of India’s economic geography. With a combined GDP of over INR 9.9 trillion and more than 70 million sq ft of Grade A office stock, these nine cities are not just future promises; they are established economic forces. Our analysis of their growth patterns provides a sophisticated lens for asset allocation, transforming the question from ‘which city is best?’ to ‘which city archetype best fits my investment thesis.’ This data-driven approach is crucial for outsized performance.”
Frequently Asked Questions
Which cities are included in the study of emerging Indian cities?
The study includes Bhubaneswar, Guwahati, Chandigarh, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, and Kochi.
What are the key factors driving the growth of these emerging cities?
The key factors include 25-50% cost savings across real estate, talent, and operations, coupled with lower attrition rates and strong infrastructure development.
How does Bhubaneswar stand out as an emerging city?
Bhubaneswar stands out as a progressive smart city with a strong education ecosystem, high livability, safety, and governance rankings, making it attractive to occupiers and investors.
What unique advantage does Kochi offer in terms of connectivity?
Kochi offers unique connectivity advantages with all transportation modes, including India’s first trans-shipment facility at Vallarpadam Terminal and high-speed internet connectivity at lower operational costs.
What is the significance of the State Capital Region (SCR) for Lucknow?
The SCR encompassing Lucknow and five adjoining districts, modelled on Delhi's NCR, is expected to drive unprecedented growth and attract significant industrial investments.
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