Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati are fast emerging as India’s next growth drivers, providing corporations measurable advantages that are redefining location strategies across sectors.
A significant transformation is reshaping India’s commercial real estate landscape as nine emerging cities collectively reach economic strength, commanding a combined GDP of ₹9.9 trillion. These cities now host 70 million sq. ft of Grade A office space alongside 80 million sq. ft of logistics infrastructure, according to commercial real estate and investment management advisory JLL.
Per JLL’s report Beyond the Metros: Insights into India’s Emerging Real Estate Stars, cities such as Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati are driving this growth, offering corporations measurable advantages that are reshaping location strategies across sectors.
While the nation’s key metros will remain the primary engines of real estate demand, these nine emerging cities represent the next frontier of opportunity—capturing spillover growth and unlocking the next wave of market expansion.
Regional Growth Drivers
The JLL report singles out Jaipur, Lucknow, Coimbatore, Kochi, Bhubaneswar, and Guwahati as key growth drivers within their respective regions.
From the northern region, Jaipur and Lucknow are witnessing exceptional corporate traction. Jaipur, historically a hub for tourism, jewellery, and garment industries, has evolved into a technology destination with major IT companies. Improved connectivity through its international airport and the new Delhi-Mumbai Expressway, combined with a robust talent pool from coaching hubs and fresh graduates, positions the city for strong growth across residential, retail, and warehousing sectors.
Lucknow, as Uttar Pradesh’s capital, leverages excellent infrastructure and progressive leadership to attract industrial investments, including defence manufacturing. The city anticipates robust commercial inventory over the next three to four years. The formation of a State Capital Region (SCR) encompassing Lucknow and five adjoining districts, modelled on Delhi’s NCR, is expected to drive unprecedented growth.
Coimbatore, dubbed the ‘Manchester of South India’, stands as the state’s second-largest city by GDP, manufacturing, and IT output after Chennai. This fast-growing Tier-II destination offers immense talent availability across sectors while maintaining one of the safest environments for women’s employment. Rapid infrastructure development includes metro rail, outer ring road, and smart city initiatives, supported by the state’s latest approved master plan. Its strengths in hospitality, education, medical tourism, and manufacturing create a comprehensive business ecosystem.
Kochi demonstrates unique connectivity advantages with all transportation modes, including India’s first trans-shipment facility at Vallarpadam Terminal. As India’s primary internet gateway hosting international undersea cable systems, Kochi provides high-speed connectivity at lower operational costs. The world’s largest electric boat metro system and Phase 2 metro rail construction connecting the Central Business District to Infopark underscore its infrastructure leadership.
Bhubaneswar emerges among India’s most progressive Smart Cities, anchored by a strong education ecosystem including IIT, AIIMS, and NISER. High livability, safety, and governance rankings strengthen its appeal to occupiers and investors.
Guwahati functions as the economic gateway to eight northeastern states and the India-ASEAN trade corridor. Strong infrastructure expansion through Bharatmala highway projects, airport expansion, and logistics parks at Amingaon and Changsari, supported by Assam’s industrial and investment policy, attracts warehousing, FMCG, and e-commerce operators. The city’s regional logistics hub status drives Grade A warehousing and organised retail absorption.
Western emerging markets have established themselves as strategic business destinations by delivering a unique combination of competitive advantages that directly address corporate priorities. These markets offer exceptionally competitive real estate pricing that significantly reduces operational overhead while providing access to abundant talent pools that can be sourced with greater ease than in saturated metro markets.
Operational Cost Advantage
The data reveals a compelling value proposition: companies achieve 25-50 per cent savings across real estate, talent, and operational costs compared to established markets, while experiencing attrition rates up to 15 per cent lower than metro counterparts. This translates to immediate bottom-line impact for businesses seeking operational efficiency and talent retention.
Surekha Bihani, Senior Managing Director, East and Emerging Markets, India, JLL, says client discussions have shifted from cost savings to business priorities such as operational resilience and attracting top talent.
“Companies now recognise that the enhanced quality of life in these cities is a key differentiator for attracting and retaining employees, as evidenced by attrition rates that are up to 15 per cent lower. Paired with 20-35 per cent in talent cost savings, the business case is undeniable. This directly fuels demand for Grade A, ESG-compliant commercial spaces and integrated townships. For any business serious about long-term growth in India, a presence in these hubs is now essential.”
Samantak Das, Chief Economist and Head of Research and REIS, JLL India, addes, “This is a structural rebalancing of India’s economic geography. With a combined GDP of over ₹9.9 trillion and more than 70 million sq. ft of Grade A office stock, these nine cities are not just future promises; they are established economic forces. Our analysis of their growth patterns provides a sophisticated lens for asset allocation, transforming the question from ‘which city is best?’ to ‘which city archetype best fits my investment thesis.’ This data-driven approach is crucial for outsized performance.”
The strategic imperative across stakeholder groups reflects the data-driven opportunity within this ₹10 trillion economic base. Occupiers can implement multi-tier location strategies to capture quantified talent advantages of 20-35 per cent cost savings and 15 per cent lower attrition rates. Investors should target higher yields and capital appreciation in these pre-maturity markets, backed by a consumer base exceeding 25 million and driving over 26 million sq. ft of organised retail demand. Meanwhile, developers can focus on Grade A, environmental, social and governance (ESG)-compliant integrated townships that meet global occupier standards, supported by proven corporate adoption across 70 million sq. ft of existing premium office inventory.
JLL emphasises that these nine cities are not alternatives to established markets, but essential components of a comprehensive India strategy, backed by measurable economic fundamentals.