Bhubaneswar emerges as major Tier-2 real estate hub

Bhubaneswar is establishing itself as a prominent Tier-2 real estate market in India, experiencing significant growth in the residential, warehousing, and retail sectors. According to a CII-Knight Frank India report, residential property prices in 11 emerging cities, including Bhubaneswar, rose by 63% between 2021 and 2026, outpacing the 42% increase seen in India’s eight major metropolitan markets.

Key drivers for this growth include expanding MSME ecosystems, a growing services sector, the availability of skilled manpower, and the increasing presence of Global Capability Centres (GCCs).

In the logistics sector, Bhubaneswar is a major player in the warehousing market. In 2025, it was one of six Tier-2 markets that contributed to 5.3 million square feet of warehousing transactions, representing nearly half of the total recorded across those key markets. Additionally, the city is contributing to the expansion of organized retail, accounting for a portion of the shopping-centre stock across 24 Tier-2 cities.