Bhubaneswar is gaining prominence among India’s emerging real estate markets, with residential property prices in a group of 11 Tier-2 and Tier-3 cities growing at twice the rate recorded across the country’s leading metropolitan markets over the past decade. The trend points to a gradual shift in housing demand and economic activity beyond traditional urban centres, according to a joint report by the Confederation of Indian Industry (CII) and Knight Frank India titled India’s Next Real Estate Markets.
The report found that residential property prices across 11 high-potential emerging cities, including Bhubaneswar, Bhopal, Indore, Jaipur, Lucknow and Coimbatore, recorded a Compound Annual Growth Rate (CAGR) of 8% between 2016 and 2026. In comparison, the top eight major metro markets registered a 4% CAGR during the same period.
Within this group of emerging markets, Bhubaneswar’s residential property prices range from ₹6,550 to ₹8,550 per sq. ft. The city’s real estate activity is being supported by infrastructure development, state policies, the expansion of its MSME ecosystem and the availability of skilled talent. These factors are contributing to its growing presence in the country’s residential property landscape.
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Rajesh Agarwal, Director, Oriom Group, said the findings reflect changes that developers have been observing in Tier-2 markets. “The CII-Knight Frank report validates what developers on the ground have witnessed over the last few years—the epicenter of India’s growth story is shifting decisively towards Tier-2 cities. Bhubaneswar, with its exceptional blend of modern infrastructure, rapid urbanization, and a high quality of life, has evolved into a mature and highly sought-after real estate destination. Homebuyers and investors today are looking beyond traditional metros, drawn to cities that offer sustainable growth, higher value appreciation, and robust economic drivers. At Oriom Group, we are thrilled to be part of this structural transformation through Oriom Realty, delivering world-class residential and commercial spaces that match the aspirations of a progressive Bhubaneswar.”
Demand in Bhubaneswar is also being attributed to homebuyers purchasing properties for their own use and non-resident Odias (NROs). Local real estate brokers and property consultants have reported increased consumer interest, particularly in residential developments offering gated communities, amenities and green open spaces.
According to local market experts, “The high-growth corridors in Bhubaneswar have seen a massive uptick in inquiries and transactions over the past few quarters. Buyers are increasingly favoring gated communities equipped with modern amenities and green open spaces, leading to faster inventory absorption and healthy capital appreciation across both mid-range and luxury segments.”
The expansion of Bhubaneswar’s real estate market is taking place alongside growth in commercial and industrial activity. The CII-Knight Frank India report recorded 11.2 million sq. ft. of warehousing and logistics lease transactions across key Tier-2 cities. Bhubaneswar, along with Lucknow, Jaipur, Nagpur, Indore and Coimbatore, accounted for nearly half of the total, with 5.3 million sq. ft. of transactions across these markets.
Improved multi-modal connectivity and strategic investments are also contributing to Bhubaneswar’s role in eastern India’s commerce and supply chain network. The concurrent expansion of residential, commercial and industrial activity indicates a broader shift in the development of emerging urban centres.
Public investment in infrastructure is another factor shaping this transition. The share of infrastructure in government capital expenditure increased from 39% in FY15 to 55% in FY26. An expanding public-private partnership (PPP) pipeline is also forming part of the investment framework supporting infrastructure development in emerging cities.
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India’s real estate output is projected to reach $5.8 trillion by 2047. Against this backdrop, cities such as Bhubaneswar are expected to account for a growing share of demand across housing, retail and commercial property. Its young population, consumption patterns and urban planning initiatives are among the factors shaping the city’s future real estate activity as it moves beyond its position as an emerging alternative to established metropolitan markets.
