CII-Knight Frank flags Tier-2 and Tier-3 cities as India’s next retail real-estate growth engine
A CII-Knight Frank India outlook identifies 11 emerging markets where infrastructure, jobs and rising incomes could accelerate demand for retail, warehousing, offices and housing. It estimates Tier-2 and Tier-3 cities could represent a $1.4-$1.7 trillion real-estate opportunity by 2047.
What happened
A CII-Knight Frank India report identifies 11 emerging Tier-2 markets as future growth centres, supported by infrastructure, jobs, incomes, retail, warehousing
Key facts
- 11 emerging markets
- Residential price growth in Tier-2 cities exceeds the top 8 cities
- India real estate sector: about $613 billion in 2025
- India real estate sector: $5.8 trillion by 2047
- Tier-2 and Tier-3 cities opportunity: $1.4-$1.7 trillion
What changed
A CII-Knight Frank India report identifies 11 emerging Tier-2 markets as future growth centres, supported by infrastructure, jobs, incomes, retail, warehousing and office demand. Tier-2 and Tier-3 cities could account for $1.4-$1.7 trillion of India’s real estate market by 2047.
Why this matters
Prioritize a phased store-and-fulfilment expansion pipeline in high-potential Tier-2 and Tier-3 cities, using infrastructure readiness, income growth and catchment density as gating criteria.