Southern India's Real Estate Surge Led by Metro Cities and Tier-II Growth
Southern India’s real estate market is experiencing rapid expansion, with Bengaluru, Chennai, and Hyderabad leading the transformation. These metro cities are benefiting from world-class infrastructure, strong investor interest, and thriving technology ecosystems. According to a report by CBRE and CII, each city has unique strengths—Bengaluru is focusing on R&D and new economic hubs, Chennai is growing in electronics and EV manufacturing, while Hyderabad is seeing a rise in biotech and aerospace industries.
States like Karnataka, Tamil Nadu, and Telangana are setting ambitious targets to drive long-term economic growth, with Karnataka aiming to become a $1 trillion economy by 2032. These states are investing in smart industrial zones, data centres, and sustainable infrastructure to support urbanisation and balanced development. Officials emphasize the importance of inclusive planning as Tier-II and Tier-III cities begin to play a larger role in driving regional progress.
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While metro cities continue to attract large-scale office and residential investments, the report also highlights significant growth potential in Tier-II cities such as Mysuru, Coimbatore, Visakhapatnam, and Kochi. These cities are witnessing increased infrastructure spending and policy support, making them promising locations for cross-sectoral real estate development. The combination of skilled talent, strong governance, and improving connectivity is reshaping South India’s real estate future.
