January 23rd, 2025: According to a report by real estate consultant Colliers on emerging cities assessment, Nagpur emerged as the top performer, followed by Jaipur and Lucknow, all three expected to establish a strong presence in the real estate market in the coming years. The results were based on a comprehensive parameter-based analysis matrix to evaluate the growth drivers of emerging cities. This matrix was developed using five key parameters: physical infrastructure, social infrastructure, demographic growth, economic development and real estate dynamics. Cities with a well-established ecosystem and strong future growth potential, driven by development initiatives from both government and private sectors, achieved higher scores in the assessment. The analysis highlights the next set of 30 cities with significant growth potential beyond India’s well-established cities.
The report titled “Top 30 emerging cities of India” identified eight micro markets across 30 cities in India and highlighted that over the last decade, India has witnessed an unprecedented expansion of its road infrastructure, including expressways, which has improved connectivity and reshaped India’s real estate landscape. This infrastructural milestone has fuelled urban development, particularly in regions where improved connectivity has unlocked the potential for economic and real estate growth of cities.
Nagpur (Samruddhi Circle), Ahmedabad (Shela), Agra (Shastripuram), Jaipur (Ajmer Road), Lucknow (Raebareli Road), Meerut (Ganga Nagar), Chandigarh (Kharar) and Bhopal (Indus Towne) are the eight emerging micro-markets across 30 tier-2 cities in India that show potential land price growth up to 5.2x by 2035.
Swapnil Anil, managing director, Advisory Services, Colliers India, said, “The expansion of expressways not only improves commuting but also promotes urban growth. It supports economic development, encourages the creation of integrated townships and social infrastructure, and boosts tourism. These factors collectively drive demand for real estate in the region, making it a promising investment opportunity for investors and homebuyers alike. This is the best time to invest in land within the micro-markets of emerging cities along expressways, with expected returns of up to 5.2X over the next decade.”
Expressways as growth catalysts
The report stated that expressways serve as major catalysts for the economic growth of emerging cities. The development of expressways, highways and feeder routes under ambitious initiatives such as the Bharatmala Pariyojana has been pivotal in this transformation. This growing network has unlocked previously inaccessible or underdeveloped areas, creating significant opportunities for real estate development. As a result, land prices and demand for residential, commercial and industrial spaces have surged in these locations.
Expressways such as the Yamuna Expressway, Mumbai-Pune Expressway and Dwarka Expressway exemplify how improved infrastructure can transform surrounding areas into real estate hotspots. This trend highlights a broader pattern across India, where the construction of new expressways is directly linked to land price appreciation and urbanisation. Enhanced accessibility attracts businesses and investments while increasing the appeal of residential and commercial spaces, triggering a ripple effect of development, the report said.
Colliers has analysed eight major expressways, including the Nagpur-Mumbai Expressway (Samruddhi Mahamarg), Ahmedabad-Dholera Expressway, Jaipur-Delhi Expressway, Meerut-Delhi Expressway, Delhi-Chandigarh Expressway, Delhi-Agra (Yamuna Expressway), Bhopal-Indore Expressway and Lucknow-Agra Expressway (Purvanchal Expressway), along with the cities and their impacted micro-markets. This analysis reveals that the operationalisation of the 701 km Samruddhi Mahamarg Expressway has positioned Nagpur at the top of the list among these 30 emerging cities for investment in India. With an expected return of 5.2x by 2035, Nagpur has become one of the most sought-after investment destinations.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
