Nagpur home prices jump 63 percent, outpacing Mumbai and Bengaluru

Home prices in 11 emerging Indian cities have seen a sharp jump, according to a report by CII-Knight Frank. Residential property prices in these cities, including Nagpur, have risen by as much as 63 percent. This rise in tier-2 cities is considered significant compared to the country's major metros.

Demand for housing in tier-2 cities is growing due to better connectivity, infrastructure, job opportunities and increasing business activity. Buying a home in smaller cities is no longer just about getting cheaper property. Buyers are now willing to pay more for a good location and a bigger home. This shows that buyers looking for better amenities and a modern lifestyle are now prioritising quality over price. This shift is making Nagpur one of the fastest-emerging centres in the real estate market.

According to the report, besides Nagpur, the list also includes Bhopal, Lucknow, Jaipur, Indore, Bhubaneswar, Chandigarh, Ahmedabad, Coimbatore and Dehradun. All 11 cities have recorded a notable rise in home prices, reaching as much as 63 percent in some places. In contrast, prices in the major metros of Mumbai, Bengaluru and Delhi-NCR have risen by around 42 percent over the past five years. This shows that the rise in tier-2 cities has outpaced that in the bigger metros.

Residential property rates in Nagpur currently stand at around Rs 4,500 to Rs 6,500 per square foot. The expansion of infrastructure projects in the city and improved connectivity have given momentum to the real estate sector. Projects such as roads, railways, metro, expressways, airports and industrial corridors are expected to further improve the city's connectivity. The combined effect of these infrastructure projects is being felt on the city's transport network and, in turn, on real estate. At the same time, rising employment and business activity are also supporting demand for housing.

Buyers in tier-2 cities are no longer prioritising price alone. Good location, schools, hospitals, markets, access to offices, public transport and modern amenities are also becoming important factors in the decision to buy a home. Since all these factors are now considered together, the buying decision has become more comprehensive than before. This is why developers are also focusing on building larger, premium projects in these cities. Projects launched by several major builders in Nagpur have given momentum to both residential and commercial real estate activity.

Development work related to Nagpur airport and the city's growing business activity are also considered important for the real estate sector. As infrastructure expands, employment and business activity are expected to rise further, providing additional support to property demand. Overall, this period is considered favourable for Nagpur's real estate market.