Tier-2 cities see housing prices rise nearly twice as fast as top 8 markets: Report

Residential prices across 11 emerging Tier-2 markets have grown nearly twice as fast as those in India’s top eight cities over the past decade, highlighting the growing role of smaller cities in the next phase of India’s real estate expansion, according to a CII-Knight Frank India report released on Friday.The report, titled India’s Next Real Estate Markets, identified Bhopal, Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur, Visakhapatnam and Coimbatore as emerging markets with the potential to drive the next phase of real estate growth.These 11 cities recorded an average residential price compound annual growth rate (CAGR) of 8 per cent between 2016 and 2026, compared with 4 per cent across the top eight markets, Mumbai, Bengaluru, Delhi-NCR, Hyderabad, Chennai, Pune, Ahmedabad and Kolkata.Smaller cities widen price growth leadThe gap has become more pronounced in recent years.