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.

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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.

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