By 2030, South India’s real estate market is expected to transition into a broader, more distributed growth cycle, with Tier-2 and Tier-3 cities contributing an increasing share of residential and commercial absorption, even as Bengaluru continues to anchor institutional demand. Industry projections indicate that emerging southern cities could collectively deliver around 40,000 residential units by 2030, scaling to 60,000 units by 2035, a 10–12% growth trajectory over the decade.
“South India’s real estate story is no longer confined to its largest metros. Cities such as Coimbatore, Kochi, Trivandrum and Visakhapatnam are evolving into sustained demand centres, supported by infrastructure expansion, affordability and decentralisation of employment,” said M.R. Jaishankar, Chairman & Managing Director, Brigade Group. He added that while growth will not be linear, Tier-2 cities are expected to drive the next phase of volume-led expansion for the region.
Residential sales value in these markets is projected to rise steadily as buyers increasingly prioritise value, connectivity and quality of life. Developers estimate that sales volumes in Tier-2 and Tier-3 cities could double over the next five years, subject to macroeconomic stability and continued access to capital.
Bengaluru, meanwhile, is expected to remain South India’s most resilient real estate market, underpinned by its technology ecosystem, global capability centres and depth of office demand. “Bengaluru will continue to attract long-term capital because it combines employment visibility with a maturing residential market. The next phase will be defined by mixed-use development, infrastructure-led growth and an increasing focus on liveability,” said Sunil Pareek, Executive Director, Assetz Group, mentioned at CREDAI-South Con.
From a demand perspective, consultants and developers see the decentralisation trend strengthening rather than weakening metros. “The growth of Tier-2 cities is not coming at the cost of Bengaluru. Instead, it is creating a more balanced regional ecosystem where metros remain employment anchors while surrounding cities absorb incremental residential and industrial demand,” said Prashant Thakur, Executive Director and Head – Research & Advisory, ANAROCK Group.
On the commercial front, South India is projected to add 8–12 million sq ft of office space, 15–20 million sq ft of retail, and 40–60 million sq ft of warehousing by 2030, with logistics and industrial assets expected to outperform traditional office formats in non-metro locations. Hospitality is projected to see the addition of 12,000–18,000 rooms, while data-centre capacity could scale to 200–300 MW, led by coastal markets such as Visakhapatnam.
Experts says, Infrastructure investment remains the key catalyst reshaping demand geography. National highway expansion, Vande Bharat rail connectivity, logistics corridors and the rapid expansion of regional airports are compressing travel times and enabling real estate development to move deeper into non-metro markets.
While the medium-term outlook remains constructive, industry leaders caution that absorption could see intermittent volatility between 2026 and 2028 due to geopolitical risks, higher capital costs and AI-led restructuring in technology-driven sectors. As a result, developers with strong brands, transparent governance and capital discipline are expected to outperform aggressive land-banking strategies.
Overall, the 2030 outlook positions South India as a more resilient and diversified real estate market, with Tier-2 cities driving incremental growth and Bengaluru continuing to serve as the region’s institutional and innovation backbone.
“South India’s real estate story is no longer confined to its largest metros. Cities such as Coimbatore, Kochi, Trivandrum and Visakhapatnam are evolving into sustained demand centres, supported by infrastructure expansion, affordability and decentralisation of employment,” said M.R. Jaishankar, Chairman & Managing Director, Brigade Group. He added that while growth will not be linear, Tier-2 cities are expected to drive the next phase of volume-led expansion for the region.
Residential sales value in these markets is projected to rise steadily as buyers increasingly prioritise value, connectivity and quality of life. Developers estimate that sales volumes in Tier-2 and Tier-3 cities could double over the next five years, subject to macroeconomic stability and continued access to capital.
Bengaluru, meanwhile, is expected to remain South India’s most resilient real estate market, underpinned by its technology ecosystem, global capability centres and depth of office demand. “Bengaluru will continue to attract long-term capital because it combines employment visibility with a maturing residential market. The next phase will be defined by mixed-use development, infrastructure-led growth and an increasing focus on liveability,” said Sunil Pareek, Executive Director, Assetz Group, mentioned at CREDAI-South Con.
From a demand perspective, consultants and developers see the decentralisation trend strengthening rather than weakening metros. “The growth of Tier-2 cities is not coming at the cost of Bengaluru. Instead, it is creating a more balanced regional ecosystem where metros remain employment anchors while surrounding cities absorb incremental residential and industrial demand,” said Prashant Thakur, Executive Director and Head – Research & Advisory, ANAROCK Group.
On the commercial front, South India is projected to add 8–12 million sq ft of office space, 15–20 million sq ft of retail, and 40–60 million sq ft of warehousing by 2030, with logistics and industrial assets expected to outperform traditional office formats in non-metro locations. Hospitality is projected to see the addition of 12,000–18,000 rooms, while data-centre capacity could scale to 200–300 MW, led by coastal markets such as Visakhapatnam.
Experts says, Infrastructure investment remains the key catalyst reshaping demand geography. National highway expansion, Vande Bharat rail connectivity, logistics corridors and the rapid expansion of regional airports are compressing travel times and enabling real estate development to move deeper into non-metro markets.
While the medium-term outlook remains constructive, industry leaders caution that absorption could see intermittent volatility between 2026 and 2028 due to geopolitical risks, higher capital costs and AI-led restructuring in technology-driven sectors. As a result, developers with strong brands, transparent governance and capital discipline are expected to outperform aggressive land-banking strategies.
Overall, the 2030 outlook positions South India as a more resilient and diversified real estate market, with Tier-2 cities driving incremental growth and Bengaluru continuing to serve as the region’s institutional and innovation backbone.
