As India stands at the cusp of a transformative decade, the real estate sector is witnessing a profound reordering – one that is shifting the epicentre of growth beyond the traditional metros and into the heart of Bharat.
This quiet but powerful transition is the focus of my latest strategic outlook, “BHARAT 2030: The Silent Surge of Tier-II and Tier-III Cities”, which maps the structural undercurrents driving the future of India’s urban development.
Real Estate Narrative in India
For years, the real estate narrative in India has been synonymous with metros like Delhi, Mumbai, Bengaluru, and Hyderabad. However, this story is evolving – not as a result of mere spillover from saturated markets, but due to enduring shifts in aspirations, affordability, infrastructure, and accessibility.
The Rise of India’s Next Growth Engines
Cities like Raipur, Belagavi, Salem, Hosur, Jabalpur, Aurangabad, Tirunelveli, Siliguri, Baddi, Udaipur, and Warangal are emerging as the true engines of India’s next urban leap. These Tier-II cities are seeing sustained growth not just in housing, but also in employment, connectivity, and community-led development.
Meanwhile, Tier-III cities – Ayodhya, Dharwad, Sangli, Haldwani, Ajmer, Barshi, Kharagpur, Nanded, Agartala, and Kollam – which have long remained under the radar, are finally stepping into the spotlight. These towns are poised to contribute significantly to the next ₹10 lakh crore of India’s real estate economy.
This is not a cyclical trend. What we are witnessing is a paradigm shift – a rebalancing of the urbanisation model that favours deeper geographical inclusion and sustainable growth.
Infrastructure-Led Urbanisation
One of the report’s key findings is that infrastructure is now leading real estate development, not the other way around. Expressways, regional airports, metro extensions, and dedicated freight corridors are laying a new foundation for scalable urban ecosystems.
In Bhubaneswar, walkable smart city neighbourhoods rooted in local culture are setting benchmarks. Jabalpur and Gwalior are becoming township hubs, enabled by enhanced air and road connectivity. Salem and Tirunelveli are growing as health-tech magnets, following in Coimbatore’s footsteps.
Strategic logistics centres are coming up in Raipur, Siliguri, and Belagavi, while Hosur, Aurangabad, and Pithampur are transforming into EV manufacturing corridors, spurring demand for both affordable and premium housing.
Even Chandigarh’s suburbs – Baddi, Barotiwala, and Derabassi – are evolving from industrial outposts to integrated living environments. Cities like Lucknow and Ayodhya are seeing renewed investment, driven by institutional frameworks, spiritual tourism, and government push.
Why This Matters Now
What makes this moment significant is the convergence of multiple enablers:
- Land availability and affordability support large-scale, long-term planning.
- Rising household incomes, improved education, and digital reach are lifting aspirations.
- Reverse migration is picking up momentum as citizens return to their hometowns in search of better quality of life.
- Policy clarity and faster approvals from local governments are making these cities increasingly investor-friendly.
- Private players are entering early, lured by cost advantages and a skilled local talent pool.
This convergence means we’re not simply watching the decentralisation of real estate. We’re witnessing the redefinition of urban India.
Strategic Imperatives for Developers, Investors, and Policymakers
To ride this wave, developers must move early—focusing on plotted developments, affordable housing, and township models. Collaboration with local stakeholders and timely delivery will be essential to build trust and scale sustainably.
Investors need to look beyond the herd, identifying corridors where infrastructure rollout matches policy intent – whether through expressways, rail links, or GCCs (Global Capability Centres). There’s significant potential in institutional assets, co-living, senior housing, and warehousing.
Policymakers must treat these emerging cities as urban laboratories for reform—enabling end-to-end digital approvals, driving ESG compliance, and promoting resilient, sustainable mobility frameworks.
India@2030: The Balanced Urban Future
India’s future will not be shaped solely by its metros. The quiet rise of Tier-II and Tier-III cities will define our economic and social trajectory in equal measure. This is about more than expanding market size—it is about fostering balanced growth, inclusion, and equitable opportunity across geographies.
The real estate surge of Bharat is not loud, but it is unstoppable. And its story is just beginning.
