Emerging Cities Drive India’s Rs 10 Trillion Real Estate Growth
Real Estate

Emerging Cities Drive India’s Rs 10 Trillion Real Estate Growth

Mumbai, November 10, 2025 – India’s commercial real estate landscape is undergoing a major shift as nine emerging cities collectively command a GDP of nearly Rs 10 trillion, 70 million sq ft of Grade A office space, and 80 million sq ft of logistics infrastructure, according to JLL’s latest report ‘Beyond the Metros: Insights into India’s Emerging Real Estate Stars’.

While metros such as Mumbai, Delhi NCR, and Bengaluru continue to drive national demand, these fast-rising markets—Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati—are fuelling the next phase of India’s growth story.

Shifting Corporate Priorities The report highlights that companies expanding into these cities realise 25–50 per cent savings in real estate, talent, and operational costs, along with attrition rates up to 15 per cent lower than metro markets. With a combined economy of Rs 9.9 trillion, these cities are reshaping corporate location strategies across industries.

Regional Growth Champions

Jaipur has evolved from a traditional tourism hub to a tech destination, aided by the Delhi–Mumbai Expressway and strong talent availability.

Lucknow benefits from progressive governance and the planned State Capital Region (SCR) initiative, modelled on Delhi NCR, which is set to boost commercial growth.

Coimbatore stands out as Tamil Nadu’s second-largest economy, supported by infrastructure upgrades such as a metro rail, outer ring road, and smart city initiatives.

Kochi leverages multimodal connectivity and strong digital infrastructure, including India’s first trans-shipment terminal at Vallarpadam and high-speed undersea cable links.

Bhubaneswar continues to attract investors as one of India’s most livable Smart Cities, while Guwahati strengthens its position as the gateway to the North-East and the India–ASEAN corridor.

Strong Fundamentals and Cost Advantage According to Surekha Bihani, Senior Managing Director – East and Emerging Markets, JLL India, “Our client conversations have shifted from pure cost savings to operational resilience and talent retention. Enhanced quality of life in these cities is becoming a key differentiator, with attrition rates 15 per cent lower and talent cost savings of up to 35 per cent.”

Strategic Asset Allocation Dr Samantak Das, Chief Economist and Head of Research, JLL India, added, “This represents a structural rebalancing of India’s economic geography. With more than 70 million sq ft of Grade A office space and over Rs 9.9 trillion in GDP, these markets are established economic forces, not future promises.”

JLL’s analysis suggests that occupiers can benefit from multi-tier location strategies, investors can capitalise on higher yields in pre-maturity markets, and developers can focus on ESG-compliant, integrated townships that align with global occupier standards.

Together, these nine cities form the next frontier of India’s real estate growth, redefining how corporations, investors, and developers approach expansion beyond traditional metros.

Mumbai, November 10, 2025 – India’s commercial real estate landscape is undergoing a major shift as nine emerging cities collectively command a GDP of nearly Rs 10 trillion, 70 million sq ft of Grade A office space, and 80 million sq ft of logistics infrastructure, according to JLL’s latest report ‘Beyond the Metros: Insights into India’s Emerging Real Estate Stars’. While metros such as Mumbai, Delhi NCR, and Bengaluru continue to drive national demand, these fast-rising markets—Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati—are fuelling the next phase of India’s growth story. Shifting Corporate Priorities The report highlights that companies expanding into these cities realise 25–50 per cent savings in real estate, talent, and operational costs, along with attrition rates up to 15 per cent lower than metro markets. With a combined economy of Rs 9.9 trillion, these cities are reshaping corporate location strategies across industries. Regional Growth Champions Jaipur has evolved from a traditional tourism hub to a tech destination, aided by the Delhi–Mumbai Expressway and strong talent availability. Lucknow benefits from progressive governance and the planned State Capital Region (SCR) initiative, modelled on Delhi NCR, which is set to boost commercial growth. Coimbatore stands out as Tamil Nadu’s second-largest economy, supported by infrastructure upgrades such as a metro rail, outer ring road, and smart city initiatives. Kochi leverages multimodal connectivity and strong digital infrastructure, including India’s first trans-shipment terminal at Vallarpadam and high-speed undersea cable links. Bhubaneswar continues to attract investors as one of India’s most livable Smart Cities, while Guwahati strengthens its position as the gateway to the North-East and the India–ASEAN corridor. Strong Fundamentals and Cost Advantage According to Surekha Bihani, Senior Managing Director – East and Emerging Markets, JLL India, “Our client conversations have shifted from pure cost savings to operational resilience and talent retention. Enhanced quality of life in these cities is becoming a key differentiator, with attrition rates 15 per cent lower and talent cost savings of up to 35 per cent.” Strategic Asset Allocation Dr Samantak Das, Chief Economist and Head of Research, JLL India, added, “This represents a structural rebalancing of India’s economic geography. With more than 70 million sq ft of Grade A office space and over Rs 9.9 trillion in GDP, these markets are established economic forces, not future promises.” JLL’s analysis suggests that occupiers can benefit from multi-tier location strategies, investors can capitalise on higher yields in pre-maturity markets, and developers can focus on ESG-compliant, integrated townships that align with global occupier standards. Together, these nine cities form the next frontier of India’s real estate growth, redefining how corporations, investors, and developers approach expansion beyond traditional metros.

Next Story
Infrastructure Urban

CFI Appoints New National Council for FY27 and FY28

The Construction Federation of India (CFI) has announced its newly elected National Council and office bearers for a two-year term covering FY27 and FY28. M. V. Satish, Advisor to CMD and Lead Ambassador for Middle East, L&T, has been elected President; Priti Patel, Chief Strategy & Growth Officer, Tata Projects, has been appointed Vice President; and Ajit Bhate, Managing Director, Precast India Infrastructures, has taken charge as Treasurer.The newly formed National Council brings together senior leaders from major EPC and infrastructure companies, reflecting CFI’s continued focus o..

Next Story
Infrastructure Urban

India REIT Market Gains Momentum with Strong Returns

India’s Real Estate Investment Trust (REIT) market is witnessing strong growth, emerging as a competitive investment avenue both domestically and across Asia. According to a recent ANAROCK report released at EXCELERATE 2026 by NAREDCO Maharashtra NextGen, the sector is evolving into a mature asset class driven by solid fundamentals, regulatory backing and rising investor confidence.The introduction of Small and Medium REITs (SM REITs) in 2025 has further widened access through fractional ownership, unlocking a potential monetisation opportunity of Rs 670–710 billion. Indian REITs have deli..

Next Story
Infrastructure Energy

G R Infraprojects Secures Rs 4,130 Million BESS Contract From NTPC

G R Infraprojects said it has secured a contract from NTPC to supply and implement a battery energy storage system (BESS) valued at Rs 4,130 million (mn). The company reported the order was awarded as part of NTPC's ongoing efforts to enhance grid flexibility and energy storage capacity. The contract represents a notable addition to the firm's project pipeline and underscores demand for utility scale storage solutions. The award is expected to strengthen G R Infraprojects' presence in the energy infrastructure sector and to contribute to the firm's order book and future revenues, subject to st..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement