Nine Emerging Cities Drive Office and Logistics Growth: JLL
Real Estate

Nine Emerging Cities Drive Office and Logistics Growth: JLL

A new JLL report highlights a major shift in India’s commercial real estate market as nine emerging cities have collectively crossed a GDP of Rs 9.9 trillion and now command 70 million sq. ft of Grade A office space and 80 million sq. ft of logistics infrastructure. While metros continue to dominate demand, these cities are becoming the next engines of expansion.

The report, titled Beyond the metros: Insights into India’s emerging real estate stars, names Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati as the leading emerging markets offering clear advantages to corporations seeking cost efficiency and talent access.

In the northern region, Jaipur and Lucknow are witnessing strong corporate traction. Jaipur’s growth is supported by its expanding IT sector, improved connectivity—including the Delhi–Mumbai Expressway—and a strong talent pipeline. Lucknow continues to leverage robust infrastructure and industrial investment, with the upcoming State Capital Region expected to accelerate regional growth.

In the south, Coimbatore stands out as a manufacturing and IT hub with strong infrastructure development through metro rail, outer ring road works, and smart city projects. Kochi offers unmatched connectivity, India’s first trans-shipment terminal, and key undersea cable systems, along with expanding metro links.

Bhubaneswar, supported by top educational institutions and strong governance, continues to establish itself as a progressive Smart City. Guwahati serves as the economic gateway to India’s Northeast and the India–ASEAN corridor, supported by logistics parks, Bharatmala highway projects, and growing warehousing demand.

Emerging western markets also offer competitive real estate pricing, talent availability, lower attrition rates, and improved quality of life, making them attractive alternatives to saturated metro locations.

According to JLL, companies entering these markets can expect 25–50 per cent savings across real estate, talent, and operations, along with attrition rates up to 15 per cent lower than metro cities. This value proposition is prompting organisations to rethink their location strategies.

Surekha Bihani, Senior Managing Director – East and Emerging Markets, JLL India, said that discussions with clients are increasingly centred on operational resilience and talent attraction rather than just cost savings. She added that these markets are generating strong demand for Grade A, ESG-compliant office spaces and integrated townships.

Dr Samantak Das, Chief Economist and Head of Research and REIS at JLL India, described the trend as a “structural rebalancing” of India’s economic geography. He noted that the combined Rs 9.9 trillion GDP and existing premium office stock demonstrate that these cities are already significant economic forces.

The report recommends that occupiers adopt multi-tier location strategies to leverage 20–35 per cent talent cost advantages, while investors focus on higher yields and capital appreciation in pre-maturity markets. Developers are encouraged to build Grade A, ESG-aligned townships that match global occupier expectations.

JLL’s analysis reinforces that these nine cities are not alternatives to metros but essential components of a modern India strategy supported by strong economic fundamentals.

A new JLL report highlights a major shift in India’s commercial real estate market as nine emerging cities have collectively crossed a GDP of Rs 9.9 trillion and now command 70 million sq. ft of Grade A office space and 80 million sq. ft of logistics infrastructure. While metros continue to dominate demand, these cities are becoming the next engines of expansion. The report, titled Beyond the metros: Insights into India’s emerging real estate stars, names Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati as the leading emerging markets offering clear advantages to corporations seeking cost efficiency and talent access. In the northern region, Jaipur and Lucknow are witnessing strong corporate traction. Jaipur’s growth is supported by its expanding IT sector, improved connectivity—including the Delhi–Mumbai Expressway—and a strong talent pipeline. Lucknow continues to leverage robust infrastructure and industrial investment, with the upcoming State Capital Region expected to accelerate regional growth. In the south, Coimbatore stands out as a manufacturing and IT hub with strong infrastructure development through metro rail, outer ring road works, and smart city projects. Kochi offers unmatched connectivity, India’s first trans-shipment terminal, and key undersea cable systems, along with expanding metro links. Bhubaneswar, supported by top educational institutions and strong governance, continues to establish itself as a progressive Smart City. Guwahati serves as the economic gateway to India’s Northeast and the India–ASEAN corridor, supported by logistics parks, Bharatmala highway projects, and growing warehousing demand. Emerging western markets also offer competitive real estate pricing, talent availability, lower attrition rates, and improved quality of life, making them attractive alternatives to saturated metro locations. According to JLL, companies entering these markets can expect 25–50 per cent savings across real estate, talent, and operations, along with attrition rates up to 15 per cent lower than metro cities. This value proposition is prompting organisations to rethink their location strategies. Surekha Bihani, Senior Managing Director – East and Emerging Markets, JLL India, said that discussions with clients are increasingly centred on operational resilience and talent attraction rather than just cost savings. She added that these markets are generating strong demand for Grade A, ESG-compliant office spaces and integrated townships. Dr Samantak Das, Chief Economist and Head of Research and REIS at JLL India, described the trend as a “structural rebalancing” of India’s economic geography. He noted that the combined Rs 9.9 trillion GDP and existing premium office stock demonstrate that these cities are already significant economic forces. The report recommends that occupiers adopt multi-tier location strategies to leverage 20–35 per cent talent cost advantages, while investors focus on higher yields and capital appreciation in pre-maturity markets. Developers are encouraged to build Grade A, ESG-aligned townships that match global occupier expectations. JLL’s analysis reinforces that these nine cities are not alternatives to metros but essential components of a modern India strategy supported by strong economic fundamentals.

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