Mumbai, Sept. 18 -- Residential prices in 11 emerging Tier-2 markets have grown nearly twice as fast as those in India's top eight cities over the past decade, pointing to a widening role for smaller cities in the country's next phase of real estate growth, according to a CII-Knight Frank India report.

The report said residential prices across Bhopal, Bhubaneswar, Chandigarh Tricity, Goa, Indore, Jaipur, Kochi, Lucknow, Nagpur, Visakhapatnam and Coimbatore recorded an average compound annual growth rate (CAGR) of 8 per cent between 2016 and 2026, compared with 4 per cent across the top eight cities.

The gap has widened in recent years. Residential prices across the 11 emerging markets increased 63 per cent between 2021 and 2026, compare...