India is set to urbanize at a rapid pace, reaching around 36% this year and an anticipated 50% by 2050. According to a report by Cushman and Wakefield released at the 21st NATCON in Egypt, tier-2 towns like Bhubaneswar, Indore, Jaipur, and others will become promising real estate destinations due to their development potential. The report identifies key indicators such as population, infrastructure, talent pool, income, ease of living, and housing affordability to select these cities. This urbanization trend is reshaping real estate dynamics, with tier-2 cities expected to play a significant role in India's growth story.
India is poised for a significant urbanization shift, with expectations to reach approximately 36% urbanization this year and a projected 50% by 2050. This transformative trend is detailed in a report by Cushman and Wakefield, a real estate consultant, and the Confederation of Real Estate Developers' Associations of India (CREDAI), released on October 6 during the 21st NATCON in Sharm El Sheikh, Egypt.
The NATCON, organized by CREDAI, is Asia's largest annual real estate national convention, drawing over 1400 delegates. This two-day event aims to foster discussions on various real estate subjects, including technological innovations, token/fragmented ownership, sustainable and green housing, commercial real estate, and growth centers in tier 2/3/4 cities.
While established urban hubs like Delhi NCR, Mumbai, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad remain key players in the real estate market, the report foresees a significant shift towards 10 tier-II towns. These towns are Bhubaneswar, Coimbatore, Indore, Jaipur, Kochi, Lucknow, Nagpur, Surat, Thiruvananthapuram, and Visakhapatnam.
The selection of these cities is based on crucial indicators such as population, infrastructure, talent pool, income, ease of living, and housing affordability, showcasing a strategic approach to urbanization.
India has experienced a rapid urbanization rate, escalating from 32% in 2013 to an expected 36% in 2023. The report emphasizes the mounting pressure on existing infrastructure in tier-I cities, including Delhi NCR and Mumbai, as they grapple with the rising demand for quality-built spaces due to swift urbanization. In such a scenario, the advantages and development potential of the tier-2 cities positions them as promising destinations for real estate development.
As India's urbanization journey unfolds, dialogues like NATCON provide a vital platform to dissect the current and emerging trends, which will help in anticipating a transformative impact on India's real estate landscape. As the nation strives for sustainable and inclusive urban development, tier-II cities are poised to play a pivotal role, adding momentum to the country's overall growth narrative.
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