Nagpur Leads India's Top 30 Emerging Cities & Micro Markets, Driven by Expressway Development: Colliers Report
In the last decade, India has witnessed significant growth in its road infrastructure, particularly with the expansion of expressways. This transformation has improved connectivity and reshaped the country’s real estate landscape, fueling urban development and unlocking new economic opportunities. Regions once considered underdeveloped are now emerging as key hubs for real estate growth. Colliers’ latest report, “Top 30 Emerging Cities of India”, identifies 8 key micro-markets across 30 cities, showcasing areas primed for substantial growth driven by infrastructure advancements.
Colliers conducted a comprehensive parameter-based analysis matrix to evaluate the growth drivers of emerging cities. This matrix was developed using five key parameters: physical infrastructure, social infrastructure, demographic growth, economic development, and real estate dynamics. Cities with a well-established ecosystem and strong future growth potential, driven by development initiatives from both government and private sectors, achieved higher scores in the assessment. The analysis highlights the next set of 30 cities with significant growth potential beyond India's well-established cities. Among the emerging cities assessment, Nagpur emerged as the top performer, followed by Jaipur and Lucknow, all three of which are anticipated to establish a strong presence in India’s real estate and market in the coming years.
“The expansion of expressways not only improves commuting but also 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 alike. 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," says Swapnil Anil, Managing Director, Advisory Services, Colliers India.
Expressways as Growth Catalysts
Expressways serve as major catalysts for the economic growth of emerging cities. The development of expressways, highways, and feeder routes under ambitious initiatives such as the Bharatmala Pariyojana has been pivotal in this transformation. This growing network has unlocked previously inaccessible or underdeveloped areas, creating significant opportunities for real estate development. As a result, land prices and demand for residential, commercial, and industrial spaces have surged in these locations.
Expressways like the Yamuna Expressway, Mumbai-Pune Expressway, and Dwarka Expressway exemplify how improved infrastructure can transform surrounding areas into real estate hotspots. This trend highlights a broader pattern across India, where the construction of new expressways is directly linked to land price appreciation and urbanization. Enhanced accessibility attracts businesses and investments while increasing the appeal of residential and commercial spaces, triggering a ripple effect of development.
Colliers has analyzed eight major 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. This analysis reveals that the operationalization 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 5.2x by 2035, Nagpur has become one of the most sought-after investment destinations.
Way Forward:
As India continues to strengthen its road infrastructure, particularly with the rapid expansion of expressways, the impact on urban development and real estate growth will only intensify. The insights from Colliers' report highlight the growing potential of emerging cities, with Nagpur leading the way as a prime investment destination.
The future of India’s real estate market lies in the continued development of these emerging cities and micro-markets, fueled by enhanced connectivity and economic growth. Investors and homebuyers are presented with significant opportunities, especially in regions along expressways, where land prices are projected to experience substantial appreciation in the next decade.
