Eastern India encompasses states like Bihar, Jharkhand, Odisha, West Bengal, and further ahead, the northeastern states of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, and Tripura. These states are known to be rich in natural resources and agricultural potential, but the region has been facing slow economic growth, with some states lagging behind in social progress. The current rate of infrastructure development across these states is set to foster balanced growth and economic development with West Bengal leading the charge.
The Eastern Market, which is known for its rich culture, has become a major growth frontier in India. West Bengal, the sixth largest state as per its economic size, has seen growth in demand, with its GSDP increasing by 8.41% Y-o-Y, according to the CBRE Report.
The Eastern India states are providing impetus to infrastructure growth and a favorable business environment, which is helping it to attract business. The real estate market of East India is seeing growing demand for residential, commercial, and retail spaces, which is largely driven by rapid urbanization and disposable income, particularly in markets like Kolkata, Bhubaneswar, Sikkim and Patna that have seen significant real estate demand in recent years.
Initiatives by the government, such as the expansion of metro lines, smart city projects, and improved connectivity to arterial roads, railways, business centres, etc., have played a crucial role in driving real estate growth in the East India region.
THE KEY STATES GROWTH PATH
Arunachal Pradesh state budget for 2025-26 outlines a comprehensive plan to boost infrastructure, strengthen education, and improve healthcare services. The Indian government is accelerating the construction of 12 hydropower stations with an investment of approximately $1 billion. State government is also promoting commercial warehouses and cold storage facilities near both Donyi Polo and Tezu Airports. The investments in infrastructure and connectivity development aim to harness the region’s untapped economic potential.
Assam has become India’s third-fastest growing state, with a GDP growth rate of 7.94% at constant prices, according to Chief Minister Himanta Biswa Sarma. Assam’s pro-investor policies and continuous investments in infrastructure are the key factors driving its economic growth. The three high-speed corridors connecting Srirampur to Guwahati, Guwahati to Silchar, and Guwahati to Dibrugarh are expected to transform connectivity with the state. Guwahati’s inclusion in the Smart City mission promises substantial upgrades in public infrastructure, digital connectivity, and sustainable urban plans, which are likely to boost property values significantly.
Bihar despite the social challenges, has witnessed steady growth in recent years, driven by industries such as power, infrastructure, and government services. As per Economic Survey 2024-2025, the growth rate of Bihar’s economy was 9.2% in the year 2023-24, which placed Bihar at third among all the states of the country. Major infrastructure projects in the state, including flyovers and the expansion of public transport systems, have made Patna more accessible, boosting the real estate sector demand as well. Patna, the capital city of Bihar, has emerged as one of the most rapidly developing urban centres and has become an attractive option for investors and homebuyers alike.
Jharkhand economy is expected to grow by 7.5% in the 2025-26 fiscal, as per the state economic survey. Purbi Singhbum, Ranchi and Dhanbad, account for about 40% of Jharkhand’s GDP. It is estimated that the state’s economy will grow at 6.7% in the current financial year of 2024-25. Ranchi, the capital of Jharkhand, is a growing industrial and commercial hub with a rising demand for residential and commercial properties.
Odisha maintains one of the lowest debt-to-GSDP (Gross State Domestic Product) ratios in the country. Odisha’s economy is expected to witness a growth rate of 8 to 8.5% in FY26, according to the Economic Survey report. The state has emerged as a centre of IT/ITes industry and advanced medical care, attracting IT and healthcare professionals in eastern part of India. Bhubaneswar, one of the first cities in India to implement the Smart City plan, is strategically located on the NH between Kolkata and Chennai. It is also integrated into the South-Eastern Railway, with a domestic airport presence. This makes it a preferred destination for setting up businesses. Bhubaneswar is a rapidly developing city focusing on IT and infrastructure, leading to increased demand for residential and commercial properties.
Sikkim's economy is majorly agriculture-based. Besides agriculture, other large industries include pharmaceuticals, ecotourism, and carpet weaving. Guwahati, it's capital and the largest city in the Northeast is a major gateway to the region and is experiencing robust real estate growth, particularly in the commercial sector. The State of Sikkim has remained a progressive one with high socio-economic indicators and one of the lowest poverty ratios in the country.
West Bengal is a hub for many industries, including manufacturing, IT, cement, leather, iron & steel, textiles etc. As the largest economy in Eastern India, West Bengal ranks as the 4th largest state in India in terms of Net Value Added. The state is home to the largest Leather Complex, largest Hosiery Park, largest Foundry Park and largest Railway Manufacturing Companies in the country and its prosperity is set to be driven by an infusion exceeding Rs 90.51 lakh crore announced at the Bengal Global Business Summit. While there are challenges, such as regulatory hurdles and economic uncertainty, the government support for various schemes, rapid infrastructure development, and technological integration will hopefully provide growth akin to that experienced by Gurugram, Mumbai, and Bengaluru two decades ago. Other cities in West Bengal and Assam, such as Durgapur, Siliguri, and Asansol, too are witnessing similar growth driven by industrial development and improving infrastructure.
Northeastern States of Meghalaya, Manipur, Mizoram, Nagaland and Tripura, in spite of being endowed with vast natural resources in terms of forests, biological diversity, hydro-electricity, have remained largely underdeveloped. The recent infrastructure projects, increased connectivity and energy initiatives, along with tourism promotion in these states are now creating the potential for investment in various sectors, including tourism and IT.
The rapid urbanization in East India cities coupled with government initiatives and infrastructure projects are enhancing market attractiveness and creating opportunities for investors.
THE REAL ESTATE BOOM
The real estate market in the eastern region of India is experiencing significant growth and transformation. From second homes and eco-hotels to warehousing and commercial real estate, East India is experiencing property growth. As per the developer’s body, there has been a significant demand for office spaces driven by local businesses and the entry of national companies. This demand is supported by the Eastern states improving infrastructure and connectivity, including ongoing and proposed projects to enhance transportation and utility services.
West Bengal continues to lead the real estate market in the eastern region. The city saw a significant share of new residential supply in 2024, with a strong emphasis on affordable housing, which accounted for 45% of the market, followed by mid-range housing at 39%. The residential sector in Kolkata is supported by extensive infrastructure developments like the expansion of metro lines and road networks, which improve connectivity and accessibility. Overall, the residential sector in East India is supported by extensive road connectivity developments and expansion of railways and air connectivity with other regions of the country. In the residential segment, the focus remains on affordable and mid-range housing to cater to the growing middle class and urban population, while luxury housing forms a smaller market portion.
The commercial real estate market in East India is also gaining momentum. This demand is bolstered by the improving infrastructure and connectivity, including ongoing and proposed projects to enhance transportation and utility services. The remote work trend and gig economy have further fueled the demand for small offices or co-working spaces. Given the rise in disposable incomes, retail spaces are also thriving, with new malls and high-street retail locations driving the market.
The eastern region of India holds substantial potential for real estate growth across various segments. The key opportunities lie in affordable housing, commercial real estate, industrial hubs, and luxury housing. Future trends such as smart city developments, sustainable buildings, co-working spaces, and integrated townships are expected to shape the market landscape. These factors make the eastern region a promising area for real estate investments and development.
Historically, North East India hasn’t seen as much development as other parts of the country, but this is changing. Guwahati, the largest city in Assam, stands out as a key contributor to real estate growth in the North East. Apart from residential developments, commercial real estate in the North East is also gaining traction. Major cities of the Northeast are witnessing a surge in commercial projects, catering to the region’s growing business and retail needs. Infrastructure development, such as road and rail connectivity, is crucial in unlocking the region’s real estate potential.
Key Factors Influencing Real Estate
Strategic Location – The strategic location of the East India region, acting as a gateway to Southeast Asia, and the increasing connectivity and development initiatives are driving real estate demand, for both residential and commercial properties.
Connectivity – Improved connectivity of mainland India with East India cities, driven by infrastructure projects and policies, is boosting real estate demand, especially for residential and commercial spaces, as the region becomes more accessible and attractive for investment and business.
Urbanization – Rising urbanization in eastern India’s prominent cities is driving increased real estate demand, fueled by economic growth, leading to a surge in residential and commercial properties as well as retail and industrial asset classes.
Smart City initiatives – The Indian government’s Smart Cities Mission that includes the major East India cities has led to improved urban infrastructure and quality of life, leading to increased real estate demand and investments.
EAST INDIA VS. OTHER REGIONS REALTY
Residential Real Estate - The housing real estate sector in Eastern Indian cities is becoming more organized and is seeing varied developments, from affordable housing projects to luxury apartments and under government schemes like Pradhan Mantri Awas Yojna (PMAY). Major cities are seeing a surge in apartment living concepts, which are especially popular among young professionals and families.
In comparison, the rest of India has well-established housing real estate that offers a mix of high-end luxury apartments, mid-range housing, and affordable housing projects. In fact, the major metros are moving towards integrated township living concepts, and there has been a surge in plotted developments.
Commercial Real Estate – The commercial real estate segment in East India is still emerging with the inclusion of modern shopping malls, office spaces, and business parks. Improved connectivity and infrastructural developments are key drivers of this growth. Once again, it is the capital cities that are seeing the rise in commercial projects catering to the retail, hospitality, and corporate sectors with local and domestic investments.
In contrast, commercial real estate from retail, office to hospitality in other parts of India has high demand with significant investment from institutional investors. Major metros are coming up with tech parks, business parks, and mixed-use developments, attracting national and international businesses.
Growth Drivers – Government investment promotion policies along with cross-border trade are the major drivers of the East India region’s economic growth and real estate demand. There is a notable focus on eco-friendly developments, aligning with the region’s natural beauty and sustainability goals.
While in contrast, economic growth and real estate demand in other regions of India are primarily driven by urbanization, IT, and industrial sectors. These regions have a more established real estate market in India with higher property prices and a strong demand for luxury housing.
Market Trends – East India is gradually becoming a real estate hotspot, while metro cities of India are becoming saturated. Real estate investment is mainly in residential in East India, especially by NRIs and investors looking for second homes. In contrast, in other regions, the focus is shifting to commercial and industrial real estate for investments by domestic and foreign investors.
East India’s major cities like Bhubaneswar, Guwahati, and Kolkata are experiencing rapid urbanization and infrastructure growth, positioning them as prime destinations for investment in real estate.
The North East’s proximity to international borders enhances its role in cross-border trade and commerce. Improved connectivity, including roads, railways, and airports, improves access and boosts real estate growth.
OPPORTUNITIES & CHALLENGES
The East India and the North East region offer immense opportunities due to its largely untapped real estate market. Investors can benefit from lower land costs and the potential for high returns as infrastructure projects and the Smart Cities Mission are completed.
Proper utilization and management of natural resources, along with the enhancement of human capital, can help in the growth of these states. The challenges of social inequality, low education standards, and lack of skills are the major deterrents to overcome. The infrastructural bottlenecks and political instability are other challenges that are keeping these states from reaching their full potential of economic growth.
With government commitment at Centre and state level, the various infrastructure projects are set to bring significant growth in this region in the coming years. Moreover, the strategic location as India’s gateway to East Asian countries, this region has untapped potential as a major IT and industrial hub.
Unlike the saturated markets in North, West, and South India, where competition is fierce and property prices are already high, East India provides a unique opportunity for investors to enter early. Real estate stakeholders should consider the regional dynamics to make informed investment decisions.
There is no doubt, East India is an emerging real estate destination and offers a compelling case for long-term investment. It is an exciting region to watch out for in the coming years!
With its strategic location and untapped potential, East India is set for significant growth in the coming years. Unlike the saturated markets in North, West, and South India, where property prices are already high, East India provides a unique opportunity for investors to enter early.
.png)
