India’s commercial real estate landscape is entering a new phase of growth, one that extends far beyond traditional metro boundaries. As per a new report by JLL titled “Beyond the Metros: Insights into India’s Emerging Real Estate Stars,” nine cities, namely, Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati have collectively emerged as powerful economic centers, commanding a combined GDP of nearly Rs. 10 trillion.
Together, these nine cities now boast over 70 million sq. ft. of Grade A office space and 80 million sq. ft. of logistics infrastructure, marking a decisive shift in India’s commercial geography. While metros like Bengaluru, Mumbai, and Delhi NCR will remain the prime drivers of real estate demand, these rising markets are fast becoming the next frontier for investment, corporate expansion, and employment generation.
Emerging Cities Take The Lead
Each of these cities offers quantifiable advantages, 25-50% cost savings in real estate, talent, and operational expenses, and attrition rates up to 15% lower than major metros. These factors are now influencing corporate strategies as companies seek not just efficiency, but resilience and employee retention.
According to Surekha Bihani, Senior Managing Director - East and Emerging Markets, India, JLL, “Client discussions are moving beyond cost savings to themes like operational resilience and talent retention. The quality of life in these cities is emerging as a key differentiator. Lower attrition and 20-35% talent cost savings are fuelling demand for Grade A, ESG-compliant office spaces and integrated townships.”
Northern powerhouses expand their reach
From the northern region, Jaipur and Lucknow stand out as dynamic growth centers. Jaipur, once known mainly for tourism and handicrafts is now evolving into a thriving IT and technology hub, supported by strong infrastructure, proximity to Delhi, and the upcoming Delhi-Mumbai Expressway. With a young workforce emerging from the city’s coaching and education ecosystem, Jaipur is witnessing rapid growth in its residential, retail, and warehousing sectors.
Lucknow, the capital of Uttar Pradesh, is equally poised for transformation. Strong governance, industrial diversification, and connectivity through new expressways have positioned it as an investment magnet. The proposed State Capital Region (SCR) which will integrate Lucknow with five nearby districts mirrors the NCR model and promises to significantly accelerate the city’s commercial and real estate development.
Southern innovators drive diversification
In the south, Coimbatore and Kochi illustrate how regional diversity can power growth. Coimbatore, often called the Manchester of South India has become Tamil Nadu’s second-largest economic contributor after Chennai, thriving across manufacturing, IT, and textile sectors. Supported by infrastructure projects such as a metro line, outer ring road, and smart city initiatives, Coimbatore combines industrial strength with liveability, making it an attractive choice for corporates and talent alike.
Kochi, meanwhile, benefits from unmatched connectivity. With India’s first trans-shipment terminal at Vallarpadam, extensive port operations, and international undersea internet cable links, Kochi provides a robust logistics and data backbone. Its urban mobility efforts, such as the world’s largest electric boat metro and ongoing metro expansion highlight its focus on sustainable infrastructure and integrated growth.
Eastern Cities Emerge As Growth Anchors
The eastern region’s transformation is being led by Bhubaneswar and Guwahati. Bhubaneswar, ranked among India’s most progressive Smart Cities, combines a strong education ecosystem with a high standard of living. Its institutions, like, IIT, AIIMS, and NISER, anchor a growing knowledge economy that appeals to both IT and manufacturing investors.
Guwahati, the gateway to India’s Northeast, has positioned itself as a strategic logistics and trade hub linking the Indian mainland to Southeast Asia. With major infrastructure upgrades under the Bharatmala project, expansion of the international airport, and the development of logistics parks at Amingaon and Changsari, Guwahati is attracting warehousing, FMCG, and e-commerce players looking to tap into the Northeast and ASEAN markets.
Western Markets Offer Cost And Talent Edge
Western India’s emerging cities, including Indore and Nagpur, are also proving to be attractive alternatives to saturated metro markets. Competitive real estate pricing, lower attrition rates, and access to large pools of qualified talent make these locations ideal for companies expanding their back-office, manufacturing, and logistics operations.
The JLL report highlights that companies relocating or expanding to these cities can save up to 50% in operational costs while improving employee satisfaction and retention. These cities also benefit from better work-life balance and lower living costs, enhancing their appeal for young professionals.
The Big Picture: Structural Rebalancing Of India’s Economy
Dr. Samantak Das, Chief Economist and Head of Research and REIS, JLL India, calls this trend a “structural rebalancing of India’s economic geography.” He notes, “With a combined GDP of over Rs. 9.9 trillion and more than 70 million sq. ft. of Grade A office stock, these cities are not just future promises, they are established economic forces. The focus now is not on which city is best, but which city archetype fits an investor’s strategy.”
The report suggests that occupiers can pursue multi-tier location strategies to capture 20-35% talent cost savings; investors can target higher yields and capital appreciation in these fast-maturing markets; and developers can build ESG-compliant integrated projects catering to global occupier standards.
With more than 25 million consumers driving over 26 million sq. ft. of organized retail demand, these nine cities represent India’s next growth chapter.
What’s unfolding is not a competition between metros and smaller cities, but a convergence, where both ecosystems work in tandem to power India’s $5 trillion economic ambition. The story of India’s next decade will likely be written as much in Jaipur, Lucknow, and Coimbatore as in Mumbai, Bengaluru, and Delhi.
