Cushman and Wakefield is a global real estate services firm. The Confederation of Real Estate Developers’ Associations of India is an apex body of real estate developers. Together, they released a report on real estate in India in October 2023. In 2023, India is projected to become more urbanized by close to 40%.
According to the report, the urbanization rate is expected to increase by 50%. So, more people may be moving from rural areas to live in cities and towns. And tier-II towns in India would be the next frontier in the real estate sector. Cities, like Coimbatore, Jaipur, Bhubaneswar, Nagpur, Visakhapatnam and more could be staking their claim in the journey of India’s urbanization.
This is at a time when places like Mumbai, Bengaluru, Delhi-NCR, Hyderabad and more seem to be the flag-bearers of India’s real estate markets. Newer cities could fuel the future growth of the commercial real estate market in India. So, there may be a metamorphosis on the horizon. The demand for well-constructed spaces may be prompted by an influx of urban dwellers.
So, this could create a shift in focus towards cities that are equipped with the right ingredients for sustainable growth. Rising incomes and increased consumption levels may turn tier-II cities into magnets for retail investments. Grade-A malls are malls with a lot of foot traffic and they may be expanding in tier-II cities. So, as the urbanization of India propels forward, the real estate sector could be due for some real change. The tier-II Indian cities could transform from emerging centers into powerful contributors to India’s growth story.
