Bhubaneswar, Sept. 19 (UDN): Bhubaneswar is strengthening its position as one of India’s prominent Tier-2 real estate markets, with strong growth reported across the residential, warehousing and retail segments.
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According to a CII-Knight Frank India report, residential property prices across 11 emerging cities, including Bhubaneswar, increased by 63% between 2021 and 2026. This growth was substantially higher than the 42% rise recorded across India’s eight major metropolitan markets during the same period.
The report highlighted several factors behind the growing appeal of Tier-2 and Tier-3 cities. These include expanding MSME ecosystems, availability of skilled manpower, growth in the services sector and the increasing presence of Global Capability Centres (GCCs).
Warehousing Activity Picks Up
Bhubaneswar has also emerged as one of the key Tier-2 cities in India’s warehousing market.
The city was among six selected Tier-2 markets that recorded significant warehousing transactions in 2025. Along with Lucknow, Jaipur, Nagpur, Indore and Coimbatore, Bhubaneswar contributed to a combined 5.3 million square feet of warehousing transactions—nearly half of the total recorded across the key Tier-2 markets.
The six cities together registered 11.2 million square feet of warehousing transactions during 2025, underlining the growing demand for logistics and industrial space outside India’s major metropolitan centres.
Retail Sector Also Expanding
Bhubaneswar is additionally contributing to the expansion of organised retail in emerging cities.
The report noted that Bhubaneswar, along with nine other emerging markets, accounted for approximately 60% of the 36 million square feet of shopping-centre stock across 24 Tier-2 cities in 2025.
The growth reflects increasing consumer demand, urbanisation and the expansion of organised retail infrastructure in cities beyond India’s traditional metropolitan hubs.
Infrastructure Key to Sustaining Growth
The CII-Knight Frank report noted that continued investment in infrastructure, connectivity, employment opportunities and urban development will be critical for sustaining the momentum in emerging real estate markets.
For Bhubaneswar, the combination of rising residential demand, expanding warehousing activity and retail development is positioning the Odisha capital as an increasingly important destination in India’s evolving Tier-2 real estate landscape.
