Housing prices in 11 emerging Indian cities have risen faster than those in the country’s eight largest real estate markets over the past five years, according to a report by industry body CII and property consultant Knight Frank India.
The report, India’s Next Real Estate Markets, identifies 11 cities that it says could drive the next phase of growth in India’s property market.
The cities include Bhopal, Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur, Visakhapatnam and Coimbatore.
Residential prices across these markets increased by an average of 63% between 2021 and 2026, compared with a 42% rise in the country’s eight major markets, the report said.
The eight major markets covered in the study are Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Chennai, Pune, Ahmedabad and Kolkata.
Over a longer period, the 11 emerging markets recorded an average annual growth rate of 8% in residential prices between 2016 and 2026. This compares with 4% across the eight major cities, according to Knight Frank.
Average residential prices in the 11 markets currently range from about Rs 4,500 to Rs 13,500 per sq ft.
The report attributes the stronger growth in smaller markets to improving economic conditions, infrastructure, connectivity and consumer demand.
“India’s real estate growth is increasingly broadening beyond the traditional metropolitan centres,” Knight Frank India chairman and managing director Shishir Baijal said.
The findings point to a wider geographical spread in India’s residential property market, with cities outside the traditional metropolitan centres attracting greater attention from homebuyers and developers.
Knight Frank said the improving economic and infrastructure base of these cities could support further expansion of their real estate markets.
However, the report’s assessment of future potential will depend on factors including employment growth, infrastructure development, connectivity and sustained demand for housing.
