Top 6 Indian States Attracting Smart Money in Real Estate and Manufacturing

The smart money in Indian real estate is strategically moving into key urban and industrial regions, driven by significant infrastructure development, government initiatives like the National Industrial Corridor Development Programme (NICDP), and strong fundamentals in the real estate and manufacturing sectors. These zones are lured with advanced capital based on strategized industrial corridors, airports, and tech parks, ensuring high growth prospects within 5-7 years. The major hotspots are concentrated on a state level, giving preference to land plots at the early stages of development and commercial areas rather than overcrowded urban centers.

Gujarat

Dholera SIR is the leading greenfield smart city in India, attracting significant investment with massive potential for world-class infrastructure. GIFT City targets high-end finance, IT, and business sectors, making it attractive to funds associated with International Financial Services Centres (IFSCs). Surat supplements the cheap residential property in the areas of ports and highways.

- Gujarat is investing in industrial manufacturing and renewable energy using DMIC corridors and real estate FDI in the form of Dholera SIR land deals. - Infrastructure-first: Ahmedabad power grid expansions, airports. - Government investment on infrastructure: ₹11,735 crore projects such as Dholera International Airport, Ahmedabad-Dholera Expressway (109 km), ₹550 crore airport connector, Sanand semiconductor parks. - Rates (₹/ sq ft, Q3 2025): Residential ₹4,750-7,000 (Ahmedabad); Office rents ₹50-80/month (Cushman & Wakefield).

Uttar Pradesh

The residential plots in Sectors 18-20 of YEIDA City surrounding Jewar Airport are heavily bet on by residential plots, enhanced by RRTS, Film City, and semiconductor parks. Expanding the expressways to Lucknow is advantageous, placing it in a better location to receive logistics and urban residential flows. Noida International Airport proximity contributes to a 2X appreciation by 2030.

- Uttar Pradesh focuses on logistics, warehousing, and manufacturing investments on Jewar Airport and expressways. - Infrastructure-first: Jewar Airport, power corridors. - Government investment on infrastructure: 76 km expressway Ganga (₹44.15 billion), Yamuna Expressway expansions, 12 expressway hubs (₹2.16 billion), Metro and RRTS connections. - Real Estate Prices (₹/ sq ft, Q3 2025): Residential ₹8,900 (NCR, up 24% YoY); Office rents ₹100+/month (Anarock/Cushman & Wakefield).

Maharashtra

AURIC in Aurangabad (Chhatrapati Sambhajinagar) has opened ₹71,343 crore investment in industrial smart city plots, generating 62,000 jobs through DMIC. The Hinjewadi IT hub, developed in Pune, drives residential-commercial land demand with 15-20 percent yearly appreciation due to metro and ring road development. The MIHAN-SEZ and Wardha Road in Nagpur are affordable land bank developments at the time of central Indian logistics development.

- The investments in Mumbai (32% Q3 inflows) and Pune (18% share) through developer equity (45% share) are leaders in channeling investments into data centers, IT, logistics, and ports in Maharashtra. - Infrastructure-first: airports, Mumbai-Pune, upgrades of power, DMIC. - Government investment on infrastructure: ₹1.5 lakh crore approvals of Pune greenfield airport, Pune-Chhatrapati Sambhajinagar expressway, Navi Mumbai International Airport, missing link of the Mumbai-Pune Expressway (mid-2025), 701-km Samruddhi Mahamarg. - Real Estate Prices (₹/ sq ft, Q3 2025): Residential ₹13,250 (MMR); Office rents ₹146/month (Mumbai); Retail high-street ₹750-1,300/month (CBRE/Cushman & Wakefield).

Madhya Pradesh

Indore is dominated by its Super Corridor, which hosts IT anchors such as TCS-Infosys, providing high ROI plots and apartments. Vijay Nagar commercial zones attract funds due to Smart City status and clean infrastructure. The location of IIT-IIM will assure consistent growth in residential values.

- Madhya Pradesh pays special importance to investment in logistics and warehousing through industrial corridors. - Infrastructure-first: Indore power grids, airports. - Government investment on infrastructure: Indore-Pithampur Economic Corridor, 300-hectare, led by government (₹2,400 crore), first MMLP (255 acres, Phase I by 2025). - Real Estate Prices (₹/ sq ft, Q3 2025): Residential ₹3,000-5,000 (Indore/Bhopal); Office rents ₹40-70/month (Cushman & Wakefield).

Tamil Nadu

Coimbatore attracts advanced investors to low-cost residential and geriatric living lands near Vedapatti and NH544, enhanced by a ₹1,100 crore IT park and metro development. The location, close to Cochin Airport and industrial belts such as Peelamedu, guarantees an appreciation average of 15-20 percent per year. Business centers in the vicinity of PSG Hospital will receive investments in high-street retail revenues.

- Tamil Nadu is a data center, IT, and port-led investment powerhouse, supported by GCC growth (250+ centers, 10% national). - Infrastructure-first: renewable corridors, Chennai port, CBIC. - Government investment on infrastructure: Phase II Metro (118.9 km), Equinix data center (₹574 crore) in SIPCOT Siruseri. - Real Estate Prices (₹/ sq ft, Q3 2025): Residential ₹8,000-10,000 (Chennai); Office rents ₹80-100/month (CBRE).

Andhra Pradesh

Beachfront IT-SEZs and investments in Fintech Valley are spearheaded at Visakhapatnam, where smart money bets on gated communities in the environs of the port and future Bhogapuram Airport. The smart city projects funded by the government create land plot demand of ₹5,000-₹10,000/ sq ft in the growth corridors. The synergies of logistics and data center make Vizag 3X upside by 2030 possible.

- Andhra Pradesh aims at data centers and port developments through greenfield expansions attracting FDI. - Infrastructure-first: Amaravati airport, power ventures, highways. - Government investment on infrastructure: 30,000-40,000 acre expansion of Amaravati, 73 Amrit station improvements, bullet train to the airport, ring roads, expansion. - Real Estate Prices (₹/ sq ft, Q3 2025): Residential ₹4,500, Office rents ₹60-90/month (Anarock).

Conclusion

The smart money within the Indian real estate is moving away from over-saturated metros into infrastructure-based growth centers like Dholera, GIFT City, YEIDA-Jewar, AURIC, Pune, Nagpur, Indore, Coimbatore, and Visakhapatnam. Investors who concentrate on such hubs, supported by policies and network to these hubs, are best positioned to enjoy the next decade of combined urban and industrial growth in India.