TIER-2 POWER PLAY BHUBANESWAR LEADS THE WAY

While the nation’s key metros will remain the primary engines of real estate demand, the nine emerging cities Chandigarh Tricity, Jaipur, Lucknow, Indore, Nagpur, Coimbatore, Kochi, Bhubaneswar, and Guwahati represent the next frontier of opportunity—capturing spillover growth and unlocking the next wave of market expansion, according to a JLL report. In the eastern India, capital of state of Odisha, Bhubaneswar in particular has emerged among India’s most progressive Smart Cities, anchored by a strong education ecosystem including IIT, AIIMS, and NISER. High livability, safety, and governance rankings strengthen its appeal to occupiers and investors. As per Colliers analysis, Bhubaneswar’s vibrant commercial hubs are supported by talent availability and infrastructure upgrades. And in residential, the experts predict a 15 to 20% increase in real estate bookings, particularly in the rapidly increasing luxury segment in Bhubaneswar, due to the GST reforms going forward. Bhubaneswar is among the strongest performing areas of the Indian property market this with property values up by 22.1% over the last year and recorded 47% jump in sales value year-on-year.

Bhubaneshwar’s Bold Strides

Bhubaneswar once known primarily as a city of temples, is now being rebranded as a smart city. Smart City Mission has invested over ₹2,000 crore in Bhubaneswar, with 31 out of 32 proposed urban renewal projects already completed as of August 2024. The implementation of these projects has had an immediate effect with city boasting of well-planned public spaces and improved civic services that has attracted investment and boosted the real estate sector. Bhubaneswar is no longer a fringe investment destination for real estate investors and developers. In fact, returns in Bhubaneswar is outpacing metros, say analysts.

Property prices in Bhubaneswar today average between Rs 4,500 and Rs 6,000 per sq ft in premium localities like Patia, Jaydev Vihar, and Khandagiri. Just f ive years ago, similar properties could be bought for 30–40% less. As per freal estate developers, the sales momentum is sustained due to the high demand from professionals, investors, and even NRIs. Office leasing too is growing driven by remote working and as companies adopt hub and spoke model, setting up satellite office in the city.

Key Drivers of Growth

Ongoing and planned infrastructure projects are a major catalyst. The proposed Bhubaneswar Metro Rail is set to boost demand and property value in areas along its route like Trishulia, Patia and Chandrasekharpur. Expanded road networks and upgradation of Biju Patnaik International Airport are also improving connectivity trough the city. Bhubaneswar’s status as a smart city has driven major investments in, digital integration, and urban planning leading to a boom in real estate development. The presence of IT medical, engineering and educational institutions in Bhubaneswar is creating jobs and creating a strong demand for both residential and rental properties. The streamlined implementation of Odisha RERA too has instilled confidence among the homebuyers and developers alike as the speedy disposal of grievances creates a sense of confidence among them.

Role Of Government Policies

The Odisha government has started construction on low-cost homes under the Affordable Housing Scheme, with prices targeted between ₹15 lakh and ₹50 lakh. In another major step,all planning and development authorities under the Housing and Urban Development (H&UD) Department are now required to notify ORERA in real-time regarding any project plan approvals. The integration of ORERA 2.0 with the Bhulekh and SUJOG portals will reportedly help eliminate data duplication and allow for cross-verification of approved projects.

Challenges to Overcome

The real challenge for growth in real estate market is the lack of litigation-free large parcels of lands. There is an absence of any real estate policy in the state like other states and the government land is not made available for real estate development by private entrepreneurs. Consequently, land prices are high in Bhubaneswar. Also, if infrastructure development does not keep pace, real estate projects could overpromise and underdeliver—leading to risk for buyers. One of the examples is Bhubaneswar’s Metro project, a key part of its smart city development approved in 2023 that is now on hold and undergoing a revision. The land disputes and the associated bureaucracy is also known to cause significant delays in both private and public development projects.


Market Trends

Residential Market: Bhubaneswar is seeing an annual growth rate of 8-10% in some areas and consistent demand for both affordable and luxury housing.

Affordable Housing: Developers are offering budget-friendly apartments and housing projects in suburban areas like Raghunathpur, Pahal, Patrapara and Sundarpada in Bhubaneswar.

Luxury Real Estate: The luxury market is mostly driven by NRIs, especially in upscale neighbourhoods such as Chandrasekharpur, Patia, and Khandagiri.

Commercial Real Estate: The commercial sector is witnessing substantial demand for office spaces, co working centres, and retail establishments, driven by the city’s emergence as a hub for IT, education, and healthcare.