Emerging Real Estate Hubs in India
Real estate consulting firm Colliers has pinpointed 17 cities as potential hotspots for the sector, driven primarily by companies establishing satellite offices in smaller towns and adopting hybrid work models. Additional growth catalysts include:
- Increased Digital Penetration: Enhancing connectivity and accessibility
- Government Initiatives: Fostering economic development and infrastructure growth
- Infrastructure Development: Upgrading facilities to support burgeoning populations
- Spiritual Tourism: Attracting investments in hospitality and retail sectors
Indian Real Estate Market Projections
- Expected to reach $1 trillion by 2030
- Projected to soar to $5 trillion by 2050
Assessing Growth Potential
Colliers analyzed over 100 emerging cities to evaluate real estate demand and growth potential over the next five to six years. From this universe, 30 cities were identified as potentially high-growth, with 17 slated to become real estate hotspots.
Regional Breakdown of Emerging Hubs
- North:
- Varanasi, Jaipur, Kanpur, Lucknow, Ayodhya, Amritsar, and Ayodhya to benefit from enhanced economic activity and infrastructure
- East:
- Patna and Puri poised for growth due to improved infrastructure and increased commercial activity
- West:
- Dwarka, Nagpur, Shirdi, and Surat anticipated to develop rapidly thanks to enhancing infrastructure and industrialization
- South:
- Coimbatore, Kochi, Tirupati, and Visakhapatnam becoming key centers for residential and commercial developments, backed by robust local economies and improved infrastructure
Impact on Office and Residential Markets
The emergence of these hubs is expected to significantly shift office and residential markets in smaller cities, as tech giants and start-ups capitalize on the highly skilled workforce. These locations offer:
- Office Rental Arbitrage: Typically 20-30% lower
- Reasonably Priced Housing Market: A win-win for businesses and employees
According to Vimal Nadar, Senior Director & Head of Research at Colliers India, 'the emergence of flexible spaces in these dynamic hubs will also effortlessly bridge the demand-supply gap for premium office spaces, fostering a new era of growth and opportunity.'