New Delhi: Housing prices across 11 emerging Indian cities have risen by an average 63 percent since 2021, significantly outpacing the country's eight major real estate markets, according to a report by CII and Knight Frank India.
The report, titled India’s Next Real Estate Markets, identifies Bhopal, Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur, Visakhapatnam and Coimbatore as markets with the potential to lead the next phase of India's real estate growth.
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Residential prices across these 11 markets increased 63 percent between 2021 and 2026, compared with 42 percent across the top eight cities — Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Chennai, Pune, Ahmedabad and Kolkata.
Over a longer period, the emerging markets recorded an average residential price CAGR of 8 percent between 2016 and 2026, twice the 4 percent recorded by the eight major cities.
Average residential prices across the 11 cities currently range between Rs 4,500 and Rs 13,500 per sq ft.
Knight Frank said the stronger price appreciation reflects growing momentum in smaller cities as their economic fundamentals improve, supported by better infrastructure and connectivity as well as rising consumption.
Knight Frank India CMD Shishir Baijal said India's real estate growth is increasingly expanding beyond traditional metropolitan centres, creating opportunities across Tier-2 and Tier-3 cities, satellite markets and emerging development corridors.
However, infrastructure development alone would not determine which markets emerge as major real estate hubs, he said.
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“The investable opportunity across Tier-2 and Tier-3 cities, satellite markets and emerging corridors will be shaped not simply by infrastructure creation, but also by their ability to convert connectivity into sustained economic activity,” Baijal said.
Cities capable of combining employment generation, enterprise, population growth, consumption and adequate urban capacity would be better positioned to develop deeper and more diversified real estate markets, he added.
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