These Are The Emerging Real Estate Hotspots Across India; Check All The Details Here

With the growing adoption of hybrid working models, companies are increasingly embracing the hub and spoke model by establishing satellite offices in smaller towns

With government policies and infrastructure improvements, spiritual tourism will work as a catalyst for developing numerous temple towns in India

Source : PTI

Amritsar, Ayodhya, Jaipur, Patna, and Nagpur are among the top 17 emerging cities to multiply their real estate appeal and growth prospects over the next 5-6 years, according to the latest report, ‘Equitable Growth and Emerging Real Estate Hotspots’ by Colliers International, released on Tuesday.

As India strides towards becoming the world's third-largest economy, burgeoning cities will play pivotal roles in the nation's growth journey. By 2050, India is projected to host nearly 100 cities with populations exceeding one million in addition to its 8 mega-cities. Infrastructure development, digitisation, tourism, and evolving office landscapes are set to propel the next phase of urban expansion across these locations. 

The report identifies 30 cities that are expected to see high growth from a pool of over 100 cities, where real estate development is expected to strengthen in the medium to long term. Significantly, 17 of these cities are anticipated to experience intensified real estate development across three or more asset classes. The geographic distribution of these 17 emerging real estate hotspots underscores equitable growth across India's Northern, Southern, Western, Eastern, and Central regions.

In the north region, the real estate sector in Amritsar, Ayodhya, Jaipur, Kanpur, Lucknow, and Varanasi is all set for exponential growth; in the east, Patna and Puri; in the west, Dwarka, Nagpur, Shirdi, and Surat; in the south, Coimbatore, Kochi, Tirupati, and Visakhapatnam; and in central India, it's Indore, as per the report.

Badal Yagnik, Chief Executive Officer, Colliers India, said, “Smaller towns are emerging as dynamic contributors to India's economy, driven by improved infrastructure, affordable real estate, skilled talent, and government initiatives. This growth is set to propel the real estate sector to an estimated $1 trillion by 2030 and potentially $5 trillion, a 14-16 per cent share in GDP by 2050. 

“Significant momentum is expected across residential, commercial, retail, hospitality, and industrial segments. Additionally, alternate asset classes such as data centres, senior living, and second homes are also poised for significant activity in these emerging real estate hotspots,” Yagnik added.

“All throughout, infrastructure growth will remain a key catalyst for real estate development across India. Enhanced connectivity and increased manufacturing activity driven by flagship infrastructure projects under National Infrastructure Pipeline (NIP) and PM GatiShakti will lead to the dispersion and expansion of growth centres beyond Tier I cities,” states the report.

“This will significantly boost the economies of smaller towns, triggering real estate activity across warehousing and residential segments particularly. Further, the overall supportive environment for the development of factories and MSMEs will lead to increased warehousing requirements across emerging hotspots within infrastructure corridors,” it added.

Offices And Residential Demands:

With the growing adoption of hybrid working models, companies are increasingly embracing the hub and spoke model by establishing satellite offices in smaller towns. The report claims that Coimbatore, Indore, Kochi, and several others have emerged as high-potential locations for satellite office markets.

"As tech giants and innovative start-ups tap into the skilled talent pools of emerging hubs, smaller cities are on the brink of a transformative boom in office and residential markets. Office rental arbitrage, typically 20-30 per cent lower and relatively affordable housing market in these locales creates a win-win scenario for companies and employees alike,” highlighted Vimal Nadar, Senior Director and Head of Research, Colliers India.

“This surge in demand is set to ignite a wave of interest from leading real estate developers, ushering in an influx of high-quality supply in these markets. Moreover, the rise of flex spaces in these vibrant hubs will seamlessly bridge the demand-supply gap for premium office spaces, fostering a new era of growth and opportunity,” added Nadar.

Warehouses In Small Towns:

Increased digitisation will significantly bolster real estate activity in smaller towns, particularly in sectors such as warehousing and data centres. The expansion of e-commerce is expected to drive the growth of online retail platforms, leading to the establishment of warehouses and distribution hubs in strategic locations. 

Furthermore, the escalating demand for data consumption will stimulate the development of data centres and smart infrastructure in these emerging cities, enhancing their overall appeal for real estate investments. Jaipur, Kanpur, Lucknow, Nagpur, Patna, Surat, and Visakhapatnam prominently appeared in the list of cities expected to experience heightened real estate activity driven by digitisation, according to the report.

Spiritual Tourism:

With government policies and infrastructure improvements, spiritual tourism will work as a catalyst for developing numerous temple towns in India. Upgrades in infrastructure, including enhanced road networks, flagship train services, and new airports, are expected to attract organised real estate players to these spiritual destinations over the long term, particularly in the hospitality and retail sectors, states the report.

The study Identifies the high-impact locations for spiritual tourism which involves Amritsar, Ayodhya, Dwarka, Puri, Shirdi, Tirupati, and Varanasi. These cities are poised for significant growth driven by spiritual tourism.