Tier-II Cities Along Delhi-Mumbai Expressway See Real Estate Boom and Price Appreciation

The 1,350-km Delhi-Mumbai Expressway connects Delhi with Mumbai through Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra. This major infrastructure project is transforming the real estate landscape in Tier-II cities along the route, with cities like Jaipur and Indore seeing a surge in property prices and demand.

Cities and towns linked to the upcoming Delhi-Mumbai Expressway are witnessing rising real estate activity and land price appreciation, as improved connectivity reshapes demand across residential, commercial, and logistics segments, according to developers and property consultants.

Industry experts say Tier-II cities such as Jaipur and Indore are emerging as key beneficiaries of the expressway network, with developers, office occupiers, and investors increasingly looking beyond metro markets.

Infrastructure push drives property price appreciation

Real estate consultants say property prices in Jaipur have risen by around 12-18 percent over the past year in key residential and plotted development corridors, driven by infrastructure upgrades and expanding corporate activity. In Indore, residential prices have appreciated by an estimated 10-15 percent, supported by growing industrial investments and improving connectivity.

A report by CRE Matrix noted that land prices across several expressway-linked micro-markets have increased significantly in anticipation of infrastructure-led urban expansion.

The 1,350-km Delhi-Mumbai Expressway connects Delhi with Mumbai through Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra, improving connectivity to cities such as Jaipur, Kota, Udaipur, Indore, Ahmedabad, Vadodara, and Surat. Analysts expect the corridor to reduce travel time, improve freight movement, and create new industrial and logistics clusters.

Somesh Mittal, Co-Founder of One Prastha Realty LLP, said that enhanced road networks, airport expansions, metro rail projects, and industrial and IT corridor developments have improved connectivity and employment generation, directly translating into housing demand in Tier-II cities across north, central, and western India.

“One of the key reasons is infrastructure-led development such as the creation of expressways and new metro networks. From an investment standpoint, Tier-II cities are attracting increased interest from institutional investors and NRIs due to higher rental yields, lower risk of oversupply, and steady price appreciation,” he said.

Jaipur emerges as office and residential hotspot

Among the emerging markets, Jaipur is seeing increased traction across residential, office, and logistics real estate. The city is attracting multinational firms, IT services companies, and global capability centres (GCCs) due to lower rentals and availability of land compared to NCR markets.

According to CRE Matrix, office rentals in Jaipur remain around 54 percent lower than key Tier-I cities, making it attractive for occupiers looking to optimize costs. Flexible workspace operators including IWG, Smartworks, and Awfis have expanded in the city over the past year.

Office stock in Jaipur stood at 7.8 million square feet in 2025 and is projected to rise to nearly 13 million square feet by 2030, the CRE Matrix data showed.

Amrita Gupta, Director at Manglam Group, said infrastructure projects such as expressways, metro networks, and ring roads are transforming Tier-II cities into investment destinations.

“Jaipur, in particular, has seen strong interest from homebuyers seeking better lifestyle options as well as investors looking for long-term appreciation,” she said.

Industrial and logistics hubs gain momentum

Existing industrial and logistics zones are also expected to benefit from the expressway corridor. The 3,000-acre Mahindra World City, developed by Mahindra Lifespace Developers, is witnessing higher demand from industrial and warehousing occupiers.

Amit Kumar Sinha, Managing Director and Chief Executive Officer of Mahindra Lifespace Developers, said the company has seen improved leasing and higher realizations at its Jaipur integrated city project, reflecting rising demand from manufacturing, logistics, and commercial occupiers.

Developers say improved connectivity is accelerating the shift of industrial and warehousing demand toward lower-cost Tier-II locations along the expressway network.

Indore emerges as next growth market

Indore is also gaining investor attention due to infrastructure upgrades and expanding business activity. Developers say the city is witnessing growing demand across residential, retail, and commercial real estate, with city-based Micro Mitti, a real estate firm, estimating that rentals for IT and enterprise occupiers at its new Cybercity project could be in the range of Rs 150-200 per square foot.

Mohit Goel, Managing Director of Omaxe Ltd, said improving connectivity and metro expansion are creating strong opportunities in emerging cities. “Indore is emerging as an important market, supported by infrastructure upgrades and rising urban demand,” he said.

Analysts believe the Delhi-Mumbai Expressway could reshape real estate development patterns by pushing growth beyond traditional metro centres and creating new economic corridors across northern and western India.