Real estate consulting firm Colliers has identified 17 cities as possible hubs for the sector. Companies opening satellite offices in smaller towns and moving to hybrid work models are the main drivers of the growth. Other factors include increased digital penetration, government initiatives, infrastructure development, and spiritual tourism. According to the report, the Indian real estate market is expected to grow to $1 trillion by 2030 and $5 trillion by 2050.
The real estate consulting firm Colliers has determined which 17 cities will soon become real estate hotspots. Companies opening satellite offices in smaller towns and moving to hybrid work models are the main drivers of the growth. Additional factors include government initiatives, infrastructure growth, a greater reliance on digital technology, and spiritual tourism. According to the report, the Indian real estate market is expected to grow to $1 trillion by 2030 and $5 trillion by 2050.
To assess the real estate demand and growth potential of these more than 100 emerging cities over the next five to six years, Colliers has identified them in its report. Out of a universe of more than 100 cities, Colliers identified 30 as possibly high-growth cities after thorough analysis. According to the report, 17 of these 30 cities will become hotspots for real estate.
To accommodate increasing visitor numbers, these locations are anticipated to draw investments in the hospitality and retail sectors. Cities like Varanasi, Jaipur, Kanpur, Lucknow, Ayodhya, Amritsar, and Ayodhya stand to gain from increased economic activity and better infrastructure. These areas are desirable places to invest in real estate because they are positioned to benefit from government initiatives and improved connectivity. The eastern cities of Patna and Puri are considered potential growth centers because of their improved infrastructure and increased commercial activity. In the west, cities like Dwarka, Nagpur, Shirdi, and Surat should develop rapidly thanks to improving infrastructure and industrialization.
With the help of robust local economies and improved infrastructure, the southern cities of Coimbatore, Kochi, Tirupati, and Visakhapatnam are becoming important centers for residential and commercial developments.
The office and residential markets in smaller cities are about to experience an enormous shift as tech giants and creative start-ups take advantage of the highly qualified workforce that emerges in these emerging hubs. These locations offer a win-win situation for businesses and employees due to office rental arbitrage, usually 20-30% lower, and a reasonably priced housing market. Leading real estate developers are expected to become interested in these markets because of the rise, which will bring in a flood of high-quality supply. 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.”