New Delhi: Real estate markets in India’s smaller cities are increasingly expanding beyond traditional urban boundaries. Improved road connectivity and new infrastructure are driving demand for land on the outskirts of cities. At the same time, developers are exploring opportunities for residential projects, plotted developments and mixed-use projects in these emerging areas. Once considered the outer edges of cities, these locations are now emerging as new real estate corridors.
According to real estate experts, the first major changes following improved road connectivity are usually visible in commuting patterns and land-use trends. This is often followed by the development of residential projects, schools, hospitals, retail markets, hotels, warehouses and other commercial activities. Over time, these areas can gradually evolve into new urban centres.
Sunil Goel, Managing Director of Numax Group, said, “Expressways and improved road connectivity are important growth drivers for emerging real estate markets. When travel time to key parts of a city is reduced, people become more willing to consider buying homes outside the core city areas. This shift is transforming peripheral locations into new residential hubs.”
The impact of this transformation is not limited to homebuyers. Improved connectivity is also encouraging developers to explore planned projects on larger land parcels. In smaller cities, relatively lower land costs and greater availability of land can make it easier to develop large residential communities.
Yash Miglani, Director of Migsun Group, said, “Infrastructure development in smaller cities has increased the potential for large-scale and planned residential development. With adequate land availability, developers can integrate parks, community facilities, retail spaces and entertainment options within the same development. This gives buyers not just a home, but also an opportunity to experience a more integrated lifestyle.”
The growing activity around expressways is also likely to have an impact on the commercial sector. Locations with better road connectivity offer greater potential for logistics, warehousing, hotels, retail markets and other business activities. This can create local employment opportunities and, in turn, support the surrounding residential market.
Kushagra Ansal, Director of Ansal Housing, said, “Real estate development should not be viewed only from the perspective of housing sales. When employment opportunities, markets and social infrastructure develop alongside improved connectivity, they provide long-term support to residential demand. In smaller cities, this process can help create new growth centres.”
However, the development of an expressway alone does not automatically turn an area into a real estate hub. Land prices, approved development plans, the availability of water and electricity, public transport, employment centres, schools and healthcare facilities also play an important role. Therefore, buyers and investors should not base their property decisions solely on a proposed road or infrastructure project.
Harvinder Singh Sikka, Chairman of Sikka Group, said that the long-term success of any infrastructure corridor depends on how quickly planned urban development takes place around it. Along with road connectivity, the development of water supply, public transport, education, healthcare and commercial facilities is equally important. Only then can an area outside the existing city limits evolve into a sustainable and liveable urban centre.
In the coming years, such development corridors are likely to play an increasingly important role in the real estate markets of smaller cities. Expressways are no longer merely transportation routes; in many cities, they are becoming key drivers of the next phase of urban growth. The question, therefore, is not just where the next expressway is being built, but also where the next new urban centre is taking shape around it.
