by THO
Tier 2 cities such as Nagpur, Jaipur, and Lucknow top the list of 30 emerging cities for real estate growth and investment in the country due to their rapid infrastructural advancement, an analysis by Colliers has said.
Colliers developed a matrix using five key parameters – physical infrastructure, social infrastructure, demographic growth and economic development, and real estate dynamics.
Colliers analysed eight expressways, including the Nagpur-Mumbai Expressway (Samruddhi Mahamarg), Ahmedabad-Dholera Expressway, Jaipur-Delhi Expressway, Meerut-Delhi Expressway, Delhi-Chandigarh Expressway, Delhi-Agra (Yamuna Expressway), Bhopal-Indore Expressway, and Lucknow-Agra Expressway (Purvanchal Expressway), along with the cities and their impacted micro-markets.
Nagpur real estate market
The analysis shows that the operationalisation of the 701 km Samruddhi Mahamarg Expressway has positioned Nagpur at the top of the list among these 30 emerging cities for investment in India. With an expected return of 5.2 times by 2035, Nagpur has become one of the most sought-after investment destinations.
It said the area adjoining the Nagpur-Mumbai expressway has seen immense growth in real estate development, with the presence of Pan India grade A developers.
Nagpur is poised for further infrastructure growth with upcoming projects like the Metro Line Expansion and Nagpur International Airport.
Land prices in the Samruddhi Circle area have been on an upward trajectory. The Samruddhi Circle micro-market has experienced an impressive land price appreciation of 3.7 times from 2015 to 2024. Considering upcoming developments along the expressway, the momentum may continue, with land prices projected to grow approximately 5.2 times by 2035 compared to 2024.
Currently, the average land price for graded plotted developments in the Samruddhi Circle is around ₹3300 per sq ft. The analysis showed that these are expected to increase to ₹17213 per sq ft in 2035.
Upcoming developments, such as the Metro Extension Phase 2 (Khapri to Butibori MIDC ESR and Lokmanya Nagar to Hingna) expected by 2026-27, and the airport expansion, including a terminal building with a capacity for 4 million passengers by 2030-35, are set to boost real estate growth in the region further, the analysis showed.
Jaipur real estate market
Before 2024, Jaipur saw major infrastructure projects like the Jaipur Metro and the Delhi–Jaipur stretch of the Delhi–Mumbai Expressway, enhancing regional connectivity. By 2025, the Delhi–Mumbai Expressway is expected to be completed, marking a significant infrastructure milestone for the region and playing a key role in the city’s future development.
The areas surrounding NH 48 (Delhi–Mumbai Expressway), including Bhankrota, Narayan Vihar, and nearby well-connected regions such as Sanganer and Mansarovar Extension, are experiencing significant growth, the analysis showed.
Emerging micro markets in the region are witnessing significant growth in land prices. In the Ajmer Road Area, the average land price for plotted residential developments is around ₹4,000 per sq. ft. This has increased approximately 3.5 times over the past decade, and is expected to rise a further 3.4 times by 2035.
In the Mansarovar Extension Area, the average land price is around ₹4,300 per sq. ft. for plotted residential developments. This has risen about 1.5 times in the last decade, and is expected to grow by 2.5 times by 2035. The Jagatpur area, benefiting from its proximity to nearby industrial areas, has an average land price of ₹5,700 per sq. ft. for plotted residential developments. Prices have increased by about 2.0 times in the last decade and are projected to rise a further 2.4 times by 2035, the analysis showed.
Lucknow real estate market
In Lucknow, the Awadh Expressway i.e. Kanpur Lucknow Expressway is expected to be completed by 2025, marking a significant infrastructure milestone for the region and playing a key role in the city’s future development.
The areas around the Outer Ring Road, including Raebareli Road, Sultanpur Road, and Kanpur Road, have seen significant growth in recent years due to improved connectivity and infrastructure, which has boosted real estate development.
Emerging micro markets in the region are witnessing significant growth in land prices. In the Gomti Nagar Extension area, the average land price for plotted residential developments is around ₹7500 per sq. ft, the analysis showed.
This has increased approximately 1.7 times over the past decade and is expected to rise by 1.5 times in the next five years and 1.9 times by 2035. Along the Amar Shaheed Path Area, the average land price for plotted residential developments stands at around ₹4,700 per sq. ft. This has risen about 2.4 times in the last decade and is expected to grow by another 1.9 times over the next five years and by 3.0 times by 2035, the analysis showed.
Along the Raebareli Road area, the average land price for plotted residential developments is around ₹3,900 per sq. ft. Prices have increased by about 3.5 times in the last decade and are projected to rise a further 2.0 times in the next five years and 3.4 times by 2035, Colliers said.
“The expansion of expressways improves commuting and promotes urban growth. It supports economic development, encourages the creation of integrated townships and social infrastructure, and boosts tourism. These factors collectively drive demand for real estate in the region, making it a promising investment opportunity for investors and homebuyers. This is the best time to invest in land within the micro-markets of emerging cities along expressways, with expected returns of up to 5.2X over the next decade,” said Swapnil Anil, Managing Director, Advisory Services, Colliers India.
