India’s real estate environment is undergoing a significant transformation, with Bhubaneswar emerging as a key player in the country’s emerging markets. Over the past decade, residential property prices in 11 Tier-2 and Tier-3 cities, including Bhubaneswar, have grown at a rate twice that of the nation’s leading metropolitan areas, indicating a shift in housing demand and economic activity away from traditional urban centers. This trend is highlighted in a joint report by the Confederation of Indian Industry (CII) and Knight Frank India, titled India’s Next Real Estate Markets.
Growth Trends in the Region
A closer examination of the data reveals that the 11 high-potential emerging cities, which include Bhubaneswar, Bhopal, Indore, Jaipur, Lucknow, and Coimbatore, have recorded a Compound Annual Growth Rate (CAGR) of 8% between 2016 and 2026. In contrast, the top eight major metro markets have registered a CAGR of 4% during the same period. Notably, residential property prices in Bhubaneswar range from ₹6,550 to ₹8,550 per sq. ft, making it an attractive destination for homebuyers and investors.
Rajesh Agarwal, Director of Oriom Group, notes that the report’s findings align with the observations of developers in Tier-2 markets. He states, “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.”
Factors Driving Growth
Bhubaneswar’s real estate sector is being driven by a combination of factors, including infrastructure development, state policies, the expansion of its MSME ecosystem, and the availability of skilled talent. These factors are contributing to the city’s growing presence in the national residential property market. Additionally, demand for properties in Bhubaneswar is being fueled by homebuyers purchasing properties for their own use, as well as non-resident Odias (NROs). Local real estate brokers and property consultants have reported increased interest in residential developments offering gated communities, amenities, and green open spaces.
Local market experts observe, “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 growth of Bhubaneswar’s real estate market is also being accompanied by an increase in commercial and industrial activity. According to the CII-Knight Frank India report, 11.2 million sq. ft. of warehousing and logistics lease transactions were recorded 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. The city’s improved multi-modal connectivity and strategic investments are also contributing to its role in eastern India’s commerce and supply chain network.
Outlook for the Future
Public investment in infrastructure is expected to play a key role in shaping the future of Bhubaneswar’s real estate market. The share of infrastructure in government capital expenditure has 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.
With India’s real estate output projected to reach $5.8 trillion by 2047, cities like Bhubaneswar are expected to account for a growing share of demand across housing, retail, and commercial property. The city’s young population, consumption patterns, and urban planning initiatives are among the factors that will shape its future real estate activity, as it moves beyond its position as an emerging alternative to established metropolitan markets.
