Vizag, Tirupati among top real estate growth hotspots in India
These cities are poised for a real estate boom in residential, warehousing, data centers, and retail, says Colliers India report
image for illustrative purpose
Enhanced connectivity and increased manufacturing activity driven by flagship infrastructure projects under National Infrastructure Pipeline and PM GatiShakti will lead to the dispersion and expansion of growth centers beyond Tier I cities. This will boost the economies of smaller towns, triggering real estate activity across warehousing and residential segments particularly
Hyderabad: Visakhapatnam is among top 17 cities to witness accelerated real estate development across three or more asset classes. Key factors such as infrastructure development, tourism, and changes in the office landscape will drive the next wave of urban growth across this city. The surge in data consumption will steer the development of smart infrastructure in the city driving real estate activity in segments such as residential, warehousing, retail, and data centre, said a Colliers India report.
The investment management company identified and evaluated over 100 emerging cities to determine their real estate attractiveness and growth potential over the next five to six years in its latest report, “Equitable Growth and Emerging Real Estate Hotspots.”
The report identified 30 potentially high growth cities from more than 100 cities where real estate development is set to strengthen in the medium to long term. Out of these 30, 17 cities including Visakhapatnam and Tirupati in Andhra Pradesh will witness accelerated real estate development across three or more asset classes such as residential, warehousing, data centre and retail.
“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 centers, senior living, and second homes are also poised for significant activity in these emerging real estate hotspots,” said Badal Yagnik, Chief Executive Officer, Colliers India.
The other emerging real estate hotspots include Coimbatore, Kochi, Tirupati, Indore, Dwarka, Nagpur, Shirdi, Surat, Patna, Puri, Amritsar, Ayodhya, Jaipur, Kanpur, Lucknow, and Varanasi.
The report higlighted that infrastructure growth will remain a key catalyst for the real estate development across India. Enhanced connectivity and increased manufacturing activity driven by flagship infrastructure projects under National Infrastructure Pipeline and PM GatiShakti will lead to the dispersion and expansion of growth centers beyond Tier I cities. This will 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.
According to the report, Visakhapatnam featured prominently in the list of cities expected to witness digitization driven real estate activity. The growth of e-commerce will facilitate the expansion of online retail platforms, leading to the development of fulfillment centers, warehouses, and distribution hubs in strategic locations. Additionally, the surge in data consumption will drive the development of data centers and smart infrastructure in Vizag.
