Emerging cities join metros to power India’s next phase of commercial, industrial growth
- IBEF
- November 11, 2025
A structural shift is reshaping India’s commercial real estate landscape as nine emerging cities, Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati collectively contribute around Rs. 10,00,000 crore (US$ 112.74 billion) in economic output, supported by 70 million sq. ft. of Grade A office space and 80 million sq. ft. of logistics infrastructure, according to JLL India. These cities are witnessing increasing corporate investments driven by cost efficiency, operational resilience, expanding infrastructure, and a growing talent pool. Companies relocating or expanding to these regions are realising 25-50% cost savings in real estate, operations, and manpower, alongside attrition rates up to 15% lower than in major metros.
Regional hubs are emerging as strong alternatives to traditional metros, powered by industrial diversification, improved connectivity, and enhanced quality of life. In southern India, Coimbatore and Kochi are expanding rapidly, with Coimbatore strengthening its position as Tamil Nadu’s second-largest economic hub and Kochi developing as a logistics and Information Technology (IT) centre. Jaipur and Lucknow are leading growth in the north through infrastructure upgrades and rising technology investments, while Bhubaneswar and Guwahati are driving eastern expansion with improved governance and trade connectivity. Together, these cities represent the next phase of India’s balanced and inclusive commercial and industrial growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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