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Emerging Indian Cities Outpace Top Metros in Housing Growth
A report says home prices have risen faster in 11 growing Indian markets than in the country's eight biggest cities.
These markets include places such as Jaipur, Kochi and Coimbatore.
Pujit Aggarwal says investors should look at what makes people live and work in a city, not just its city category.
He points to jobs, infrastructure and local businesses as important factors.
The report also says the government is spending a larger share of its capital budget on infrastructure.
It expects cities beyond the biggest eight to grow faster in population.
Smaller markets are also attracting warehousing and shopping centers.
Aggarwal says a lasting real estate cycle is more likely when jobs, infrastructure and household demand grow together.
A CII–Knight Frank India report says residential prices in 11 emerging markets rose 63% from 2021 to 2026, compared with 42% in the top eight cities.
From 2016 to 2026, the 11 markets recorded average annual price growth of 8%, twice the 4% rate in the top eight cities.
Infrastructure made up 55% of government capital expenditure in FY2026, up from 39% in FY2015, according to the report.
Cities outside the top eight metros are projected to see 28.2% population growth, compared with 8.7% for the largest eight cities.
Key Tier-II markets recorded 11.2 million sq ft of warehousing leasing in 2025, while Tier-II cities held 36 million sq ft of organized shopping-center stock.
- Who
- Real estate developer Pujit Aggarwal, discussing findings in the CII–Knight Frank India report.
- What
- The report describes faster housing-price growth and expanding commercial real estate activity in 11 emerging Indian markets than in the top eight cities.
- Where
- Eleven Indian markets: Bhopal, Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur, Visakhapatnam and Coimbatore.
- When
- Price comparisons cover 2016–2026 and 2021–2026; commercial real estate figures are for 2025.
- Why
- Aggarwal attributes the shift to changing patterns of infrastructure, employment, economic activity and housing demand.
Key facts
- Markets compared
- 11 emerging markets and the top eight Indian cities
- Price growth, 2021–2026
- 63% in the 11 markets; 42% in the top eight cities
- Average annual price growth, 2016–2026
- 8% in the 11 markets; 4% in the top eight cities
- Infrastructure share of government capital expenditure
- 39% in FY2015 and 55% in FY2026
- Projected population growth
- 28.2% outside the top eight metros; 8.7% in the largest eight cities
- Tier-II warehousing leasing, 2025
- 11.2 million sq ft
- Tier-II organized shopping-center stock, 2025
- 36 million sq ft of India’s 134 million sq ft total
Quotes
Pujit Aggarwal
Real estate developer commenting on emerging Indian property markets.
“Price appreciation can bring a market into focus, but it cannot be the only test. The stronger cities will be the ones where employment, infrastructure, local enterprise, and household demand begin moving together along with the usable public infrastructure as witnessed in Mumbai due to the metros, coastal road, second airport, and the trans harbour link which are used and accessed by every resident. That is where and when a more sustainable real estate cycle can take shape.”
theprint.in
“The Tier-I and Tier-II labels are becoming too broad to explain where the real opportunity lies. Two cities placed in the same category can have very different employment bases, infrastructure pipelines, and capacities to retain young households. Investors need to look at what is making people stay, earn, and spend in a city.”
theprint.in
Sources
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