New Delhi: Housing prices across 11 smaller cities rose by an average of 63 per cent since 2021, recording higher value appreciation than the eight major real estate markets, according to a report by CII and Knight Frank.
On Friday, industry body CII and property consultant Knight Frank India released a report 'India's Next Real Estate Markets' that identified 11 markets having potential of leading the next phase of real estate growth in India.
These cities are -- Bhopal, Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur, Visakhapatnam and Coimbatore.
"These cities are recording faster residential price growth than India's top eight cities, indicating a rise in momentum as their economic fundamentals continue to strengthen, backed by growth in infrastructure, connectivity and consumption," the consultant said.
As per the report, these 11 cities have an average residential price CAGR of 8 per cent between 2016 and 2026, compared with 4 per cent across the top 8 cities -- Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Chennai, Pune, Ahmedabad, Kolkata.
"The gap has widened over the past five years, with residential prices across these 11 markets increasing by 63 per cent between 2021 and 2026, as compared to 42 per cent growth across the top 8 cities," Knight Frank said.
The average prices in these 11 cities range from Rs 4,500 per sq ft to Rs 13,500 per sq ft.
Knight Frank India CMD Shishir Baijal said, "India's real estate growth is increasingly broadening beyond the traditional metropolitan centres. The investable opportunity across Tier-2 and Tier-3 cities, satellite markets and emerging corridors will be shaped not simply by infrastructure creation, but also by their ability to convert connectivity into sustained economic activity."
He noted that cities that bring together employment, enterprise, population growth, consumption and urban capacity will be better placed to build deeper and more diversified real estate markets.
