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Nagpur 08 Dec 2025 Ankita Jha

Nagpur Real Estate Market 2025: How Central India’s ‘Orange City’ Became a Growth Engine for Offices, Retail and Logistics

Nagpur, Maharashtra’s famous ‘Orange City’, has quietly turned into one of India’s most powerful emerging real estate markets. Now ranked as the country’s 13th largest economic hub, the city is moving far beyond its regional image and positioning itself as Central India’s logistics and technology capital.

Backed by an aggressive infrastructure pipeline, metro expansion, mega logistics hubs and a deep technology talent pool, Nagpur is now firmly on the radar of Global Capability Centres (GCCs), IT companies, industrial players and organised retail brands.

A recent JLL study, “Beyond the Metros: Insights into India’s Emerging Real Estate Stars”, underlines just how strong this shift is and why the Nagpur real estate market is entering a multi-year upcycle.

In this blog, we break down the opportunity across office, retail, logistics & industrial real estate, and why this city has become a serious contender for investors, occupiers and developers.

Nagpur at a Glance: From Regional Centre to National Growth Engine

Nagpur’s growth story rests on three powerful pillars:

Strategic central location – almost equidistant from major metros, ideal for pan-India distribution and warehousing

Massive infrastructure push – metro, expressways, MIHAN, and now the Nagpur–Wardha National Mega Logistics Hub

Strong knowledge and tech ecosystem – institutions like IIM Nagpur, IIIT Nagpur, IMT Nagpur and VNIT feed a 60,000-strong technology talent pool

These fundamentals are pushing the city from a tier-II tag to a national-scale tech and logistics hub, and that transformation is visible across office spaces, malls and industrial parks.

Office Market: Stable Fundamentals, Strong IT & GCC Opportunity

26% Growth in Office Stock by 2027

According to the JLL report, the Nagpur office market is on a clear expansion path:

Office stock: from 3.8 million sq. ft (2024) to 4.8 million sq. ft (2027) – around 26% growth

This growth is driven mainly by IT / ITeS firms and Global Capability Centres (GCCs) attracted by:

Wide tech talent pool (~60,000 professionals)

Lower rentals versus traditional IT hubs

Reduced attrition levels and better work–life balance for employees

For companies evaluating cost-effective office space in India, Nagpur office space offers a compelling mix of modern Grade-A buildings and attractive lease terms.

Healthy Vacancy and Rental Upside

Market health remains solid:

City-wide vacancy: around 13%, stable through the forecast period

Average rentals: currently ₹60–90 per sq. ft per month, with strong potential for appreciation as infrastructure upgrades complete and more corporates move in

This balanced supply–demand situation means Nagpur is not overbuilt, which is crucial for sustainable rental growth and long-term investor confidence.

Micro-Market Snapshot: South, East, West & North Nagpur

Nagpur’s office market is clearly segmented by micro-markets, each with its own positioning:

South Nagpur – Premier Business District

Stock: ~2.0 million sq. ft

Lowest vacancy: around 10–12%

Premium rentals: approx. ₹90–120 per sq. ft

Strong corporate preference makes this the top-end CBD of Nagpur

East Nagpur – Established, Scalable Market

Stock: ~1.0 million sq. ft

Vacancy: approx. 15–17%

Rentals: around ₹70–90 per sq. ft

Very suitable for growing IT firms and GCCs who want scale plus connectivity

West & North Nagpur – Value Markets with Upside

Stock: ~0.5 million sq. ft (West) and 0.3 million sq. ft (North)

Rentals: roughly ₹40–80 per sq. ft

These are classic “value-for-money” office corridors with room for future appreciation as infrastructure and demand deepen.

Leasing Momentum: MIHAN & Co-working Fuel the Next Leg of Growth

Gross leasing in 2024: around 0.15 million sq. ft

Expected to increase significantly by 2027 as:

More IT and GCC players leverage Nagpur’s MIHAN SEZ

Co-working and managed office operators expand to capture flexible demand

For occupiers, Nagpur is increasingly seen as a strategic satellite location that can de-risk operations from high-cost metros while maintaining strong talent access.

Retail Real Estate: Steady Expansion with Premium Performance

27% Growth in Mall Stock

The Nagpur retail real estate market is also firmly in growth mode:

Mall stock: from 3.0 million sq. ft (2024) to 3.8 million sq. ft (2027) – a 27% increase

Vacancy: stable at 10–15% across micro-markets, indicating healthy occupancy and sustained consumer demand

Nagpur’s ranking among India’s top cities for livability and its 25th position in the Ease of Living Index 2020 support strong footfalls and organised retail penetration.

Micro-Market Dynamics in Retail

South & East Nagpur – Prime Retail Corridors

Each holds about 1.0 million sq. ft of mall stock

Rentals:

South: about ₹100–130 per sq. ft

East: about ₹70–100 per sq. ft

Preferred by fashion, F&B, entertainment and lifestyle brands targeting mid-to-premium consumers

North & West Nagpur – Balanced, Growing Catchments

Each has around 0.5 million sq. ft

Rentals: roughly ₹60–90 per sq. ft

Attractive for brands looking for wider city coverage at slightly more competitive rentals

Across the city, retail rentals are expected to remain within a stable ₹100–150 per sq. ft band as consumer spending, metro connectivity and catchment populations grow.

Metro Expansion: Creating New Retail Corridors

Gross retail leasing of 0.25 million sq. ft in 2024 is expected to rise sharply by 2027, backed by:

Nagpur Metro expansion (Phase 2)

Improved last-mile connectivity and higher catchment densities around stations

New and existing retail hubs in Kanhan, Butibori, Hingna, Kapsi and Sitabuldi stand to gain the most, making them key zones for future retail and mixed-use developments.

Logistics & Industrial: Central India’s Distribution Powerhouse

If there is one segment where Nagpur real estate truly stands out, it is logistics and industrial warehousing.

Large Existing Base with Strong Upside

Current stock (2024): about 12.9 million sq. ft

Rentals: typically in the ₹14–22 per sq. ft range

Both stock and rents are expected to grow meaningfully by 2027 as more logistics operators, 3PLs and manufacturers consolidate operations here.

Nagpur’s central location makes it ideal for “one-to-many” distribution models serving Mumbai, Pune, Hyderabad, Delhi, Bhopal and beyond.

Nagpur–Wardha National Mega Logistics Hub: 1,500 Acres of Opportunity

A major game-changer is the upcoming 1,500-acre Nagpur–Wardha National Mega Logistics Hub, a flagship project under the Maharashtra Logistics Policy 2024.

Combined with:

Four national expressways

Developing freight corridors

Existing MIHAN airport-SEZ ecosystem

…this hub positions Nagpur as Central India’s leading logistics excellence centre and a natural choice for warehouses, cold-chains, e-commerce fulfilment centres and light manufacturing units.

For investors and developers eyeing industrial parks and warehousing clusters, this segment offers strong, long-duration demand with rising rentals and relatively stable occupancy.

Economic Fundamentals: A Deep, Diverse Growth Base

Nagpur’s real estate growth is not just speculation; it is backed by solid economic fundamentals:

13th largest urban economy in India – combines scale with growth potential

Regional office of the Reserve Bank of India (RBI) – strong institutional and regulatory presence

Acts as the commercial and industrial capital of Vidarbha, with influence over a large regional economy

This wide economic base supports continuous job creation in:

Banking and financial services

IT and GCC operations

Manufacturing & logistics

Education and healthcare

For corporate occupiers, this means access to a large consumption market + skilled manpower, while still enjoying lower operating costs than saturated metros.

Technology & Talent: Strong Foundation for an Emerging IT Hub

Nagpur’s technology ecosystem is anchored by renowned educational institutions:

IIM Nagpur

IIIT Nagpur

IMT Nagpur

Visvesvaraya National Institute of Technology (VNIT)

Together, they contribute to a steady stream of highly qualified professionals, forming a tech workforce of around 60,000 experienced candidates.

Add to that:

Presence of 4–5 established IT companies and GCCs acting as “anchor tenants”

Lower attrition rates and affordable lifestyle compared to big IT cities like Bengaluru, Pune or Hyderabad

…and Nagpur becomes a very convincing location for new GCCs, back-office operations, R&D units and digital centres looking for cost-efficient expansion.

Quality of Life: A Big Plus for Talent Retention

Beyond hard numbers, quality of life is a major reason the Nagpur property market is gaining momentum:

Ranked 25th in the Ease of Living Index 2020

Strong scores on healthcare, greenery, urban planning, academics and public transport

Cleaner air and less congestion than major metros

Good public transport backbone with the Nagpur Metro and growing bus network

These factors help attract and retain talent, which in turn supports sustainable demand for:

Residential housing projects in Nagpur

Grade-A office and co-working spaces

Retail, entertainment and F&B hubs

Convergence of Infra, Tech & Logistics: Why This Cycle is Different

What makes the Nagpur real estate story particularly powerful is the convergence of:

₹50,000+ crore infrastructure pipeline (expressways, metro, logistics hubs, urban upgrades)

Expanding technology sector and GCC presence

Strategic logistics positioning right at the heart of India

This combination is driving simultaneous growth in:

Office real estate – fuelled by IT, digital services and GCCs

Industrial & logistics real estate – driven by mega logistics hubs and pan-India supply chains

Retail & mixed-use real estate – powered by rising incomes, better connectivity and larger urban catchments

Put simply, Nagpur is moving from a regional hub to a nationally significant growth engine, and real estate is one of the biggest beneficiaries of this shift.

Investor & Occupier Takeaways: Is It the Right Time to Bet on Nagpur?

For different stakeholders, the message from the data is clear:

For Investors & Developers

Office, retail and warehousing all show multi-year growth potential

Balanced vacancy levels and rental upside indicate a healthy market, not an overheated one

Early entry into emerging corridors (West, North, logistics belts) can deliver strong future appreciation

For Corporate Occupiers & GCCs

Lower rental and salary costs vs major metros

Strong tech and professional talent pool

High livability and lower attrition risk make Nagpur ideal for long-term operations

For Homebuyers & Long-Term Hold Investors

Infrastructure and jobs growth will support housing demand over the next decade

Buying near metro routes, MIHAN, industrial corridors and upcoming logistics hubs can provide better long-term returns

Conclusion

Nagpur is rapidly evolving into Central India’s strongest real estate growth engine, driven by major infrastructure upgrades, a deep tech talent pool, and its strategic central location. With steady expansion across office, retail, and logistics segments, the city offers high potential and low risk for investors and occupiers alike. As mega projects like the Nagpur–Wardha Logistics Hub and metro expansion take shape, Nagpur is set to transition from an emerging market to a national economic powerhouse. Nagpur is rising fast—and the next decade presents a standout opportunity to invest, expand, and grow in the Orange City.

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