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Tier-2 and tier-3 cities emerge as India's new commercial real estate growth engines
Commercial Design
|September 2025
India's commercial real estate market is witnessing a decisive shift, with tier-2 and tier-3 cities rapidly emerging as growth engines in their own right.
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Once overshadowed by metro hubs, cities such as Indore, Nagpur, Bhubaneswar and Coimbatore are now driving 18-25% year-on-year growth in Grade-A office absorption, with rental yields rising to 7-9%. Affordable land, improving infrastructure and a mobile talent poolaccelerated by post-pandemic reverse migration-are powering demand for modern workplaces, integrated living, and high-quality social infrastructure.
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