Bengaluru, Chennai, and Hyderabad are the leading cities driving Southern India’s real estate momentum, each offering unique sectoral strengths and long-term growth potential. These cities are underpinned by world-class infrastructure, strong occupier demand, and expanding institutional investment.
IT/ITeS continues to be the dominant driver across all three cities, accounting for a significant share of office leasing. Life sciences is gaining prominence, particularly in Hyderabad and Bengaluru, backed by the presence of global R&D centres and innovation parks.
Electronics manufacturing is anchored in Chennai, supported by robust exports and supply chain infrastructure. Rising interest in data centres, premium residential developments, and warehousing is shaping the next wave of real estate growth across both metro and Tier-II locations.
As India sets its sights on becoming a USD 30-trillion economy by 2047, the Southern states will be an indispensable driving force behind this ambition. There is ample growth opportunity among these states across sectors, and it can be tapped into through targeted measures.
Tushar Giri Nath, IAS, Additional Chief Secretary to Government, Urban Development Department, Government of Karnataka, in his keynote address, said, “As Karnataka continues to witness rapid urbanisation, it is imperative that our growth story remains inclusive and well-planned. We must not only expand physical infrastructure but also build robust social infrastructure to ensure that development is holistic and not isolated. A strong transportation grid, integrated urban planning, and well-aligned policy frameworks are critical as we move towards developing Tier 2 and 3 cities as the next growth engines. The government is committed to creating a policy environment that supports the real estate sector, and we encourage deeper engagement between the industry and authorities to drive collaborative, sustainable, and equitable urban development across Karnataka.”
Ram Chandnani, Managing Director – Leasing, CBRE India, said. “Southern India is not only mirroring the region’s economic strength, it is architecting the future of India’s real estate landscape. The convergence of high-quality infrastructure, proactive governance, and a deep talent pool has turned cities like Bengaluru, Hyderabad, and Chennai into global investment attractions. What is equally compelling is the rise of Tier-II cities where targeted development and policy support are unlocking new opportunities across asset classes. This dual-track growth makes the South a blueprint for sustainable, inclusive, and innovation-led urban development”
Gaurav Kumar Managing Director, Capital Markets & Land CBRE India, said, “The Southern India region is diversifying across sectors, from Grade A office and data centres to high-value life sciences, advanced manufacturing, and warehousing. This shift is being driven by both global capital inflows and domestic occupier demand, reinforced by state-level reforms and infrastructure expansion. As India moves toward its USD 30 trillion economic ambition, Southern India will remain a critical lever delivering scale, resilience, and future-readiness across commercial and investment-grade real estate.”
Aman Choudhari, Past Chairman, CII Karnataka & Managing Director, Surin Automotive Pvt Ltd remarked, “CII remains committed to driving a future-ready real estate ecosystem through collaboration, innovation, and sustainability. As Karnataka leads the way in industrial growth and urban transformation, we must align infrastructure development with ESG principles to ensure inclusive and climate-resilient cities. This CII Karnataka Second Edition Real Estate Conference 2025 is a step forward in shaping that collective vision.”
“Karnataka is at the forefront of India’s real estate growth across residential, office, retail, and hospitality sectors. As we look toward 2030, innovation, sustainability, and integrated development will define our journey. This conference sets the platform for bold ideas, shared learnings, and collaborative action to shape a future-ready real estate ecosystem for Karnataka and beyond.”, said, Ashwinder R Singh, Core Member CII Karnataka Real Estate Conference Chair CII Real Estate NR & Vice Chairman BCD Group.
"The real estate opportunity in South India is immense and deeply interconnected. With cities like Bengaluru, Chennai, Hyderabad, Kochi, and Visakhapatnam driving innovation, we must now shift towards a regionally integrated approach rooted in sustainability, resilience, and inclusive growth. The 2nd Edition CII Real Estate Conference 2025 marks a critical step in unlocking South India’s urban potential by bringing together industry, policy, and design to build cities that are not only smarter and greener, but also more equitable and future-ready” said, Prashanth Reddy, Co-Chair CII Karnataka Real Estate Conference & Managing Director, Fundermax.
