India's Emerging Real Estate Hotspots: 17 Cities to Watch Out For
India is expected to have nearly 100 cities with populations exceeding 1 million by 2050, driven by infrastructure development, digitisation, tourism, and changes in the office landscape. A new report by Colliers identifies 17 high-potential cities that w
Real EstateIndiaEmerging CitiesInfrastructure DevelopmentDigitisationTourismOffice LandscapeColliersReal Estate MumbaiJun 18, 2024
Colliers, a leading real estate consultancy, has 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’. A comprehensive analysis of these cities was done involving assessment of various social, economic, financial, and real estate specific demand and supply side parameters.
The report highlights 17 high-potential cities that will witness accelerated real estate growth across three or more asset classes, including office, residential, warehousing, retail, hospitality, and alternatives (data centres, senior living, second homes, etc.). These cities are spread across the northern, southern, western, eastern, and central regions of the country, showcasing equitable growth across the nation.
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.
In addition, the rising prevalence of hybrid working has led to companies adopting the hub and spoke model, establishing satellite offices in smaller towns. Cities such as Coimbatore, Indore, and Kochi have emerged as high-potential satellite office markets, offering a win-win scenario for companies and employees alike.
Increased digitisation is also set to boost real estate activity in smaller towns, particularly in warehousing and data centres. 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.
Lastly, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India, attracting organised real estate players to these spiritual destinations in the long term, specifically across hospitality and retail segments.
Information
Colliers is a leading global real estate services and investment management company, operating in 68 countries. In India, Colliers provides a range of services, including advisory, valuation, consultancy, and project management, to clients across various sectors.
Colliers is a leading global real estate services and investment management company, operating in 68 countries. In India, Colliers provides a range of services, including advisory, valuation, consultancy, and project management, to clients across various sectors.
Frequently Asked Questions
What is driving the next wave of urban growth in India?
Key factors such as infrastructure development, digitisation, tourism, and changes in the office landscape will drive the next wave of urban growth in India.
How many cities are expected to have populations exceeding 1 million by 2050?
India is expected to have nearly 100 cities with populations exceeding 1 million by 2050, in addition to its eight mega-cities.
What are the 17 high-potential cities identified by Colliers?
The 17 high-potential cities identified by Colliers are Amritsar, Ayodhya, Kanpur, Lucknow, Jaipur, Varanasi, Coimbatore, Kochi, Tirupati, Visakhapatnam, Patna, Puri, Dwarka, Nagpur, Surat, Shirdi, and Indore.
What is the impact of hybrid working on real estate development?
Hybrid working has led to companies adopting the hub and spoke model, establishing satellite offices in smaller towns, which will boost the economies of smaller towns and trigger real estate activity across warehousing and residential segments.
What is the role of spiritual tourism in real estate development?
Spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India, attracting organised real estate players to these spiritual destinations in the long term, specifically across hospitality and retail segments.
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