Jaipur’s Transformation From Tourist City To Luxury Real Estate Destination

Long seen as a tourist city, Jaipur is now fast emerging as a prime residential market among Tier-II cities in India. A combination of sophisticated luxury real estate and tourism is attracting investors to the “Pink City”.

A recent report by KPMG India titled “Growth Beyond Metros: The Rise of Tier-2 and Tier-3 Cities”, lists Jaipur as one of the growth engines of luxury real estate due to a mix of infrastructure, policy, push and renewed consumption. Changing buyer sentiments and offerings by developers are shaping the luxury real estate scenario in Jaipur, the report says.

Connectivity Contributing To The Growth

Infrastructure corridors are contributing greatly to the growth of residential real estate in Jaipur. According to another report by Adani Realty, the growth of real estate in Jaipur can greatly contribute to the development of expressways, industrial hubs, and high-value micro markets.

Data from SBI Realty also shows that specific localities, such as Ajmer Road, Bagru, Agra Road and RJS Colony have seen an absorption of 91.87 per cent, 85.52 per cent, 56.25 per cent and 41.45 per cent, respectively. These areas have outperformed other localities due to their premium and select offerings.

“Jaipur has seen a fairly clear shift in luxury residential real estate. Previously, it was largely defined by scale, location, and a certain visual language. That still holds value, but it’s no longer enough on its own. Today, buyers are looking much more closely at how a home actually functions, how private it feels, how well the space is planned, and how thoughtfully the overall experience has been put together,” says Nikhil Madan, managing director, Mahima Group.

Heritage Appeal

Jaipur has for long carried a global identity as a tourism hub driven by deep-rooted culture and heritage. This also adds an appeal for external investors to invest in the city. This is supported by developers who are also catering to the unconventional housing demands, such as heritage-style villas, boutique residences, and second homes. Non-resident Indians (NRIs) and youngsters alike seeking holiday homes are looking at these options here.

“There’s a noticeable move toward more contemporary expressions of luxury, where design takes cues from Jaipur’s architectural character, but doesn’t rely on it too heavily,” says Madan.

“The market is seeing more younger buyers, second-home owners, and NRIs. They are looking at Jaipur not just as a place to live, but something that offers a different kind of living environment compared to larger cities. Second homes are not being left idle; there’s more focus on keeping them maintained and even lightly monetised when not in use,” adds Madan.

Policies Reinforcing Realty Growth In Jaipur

Policymakers are also helping in changing the outlook of Tier-II and Tier-III cities. Government and institutional investors, along with developers, are making cities like Jaipur a more diversified market for buyers.

The Union Budget 2026-27 also pushed for developed Tier-II and Tier-III cities, with investments of Rs 5,000 crore per City Economic Region (CER) over the next five years. This gives Tier-II and Tier-III cities proper funding for development. “It’s not a sudden shift, but there is a clear move toward a more considered and experience-led definition of luxury in the city,” adds Madan.

Affordability In Jaipur

Another factor that places Jaipur as a prime spot for housing is affordability.

By nature, Tier-II cities attract demand for affordable housing and premium luxury segments due to oversaturation in Tier-I cities. Rise in flexible working models and disposable incomes help people in having such assets outside of the core employment hubs.

Jaipur, too, like any other Tier-II city, offers affordable housing options. The city has recorded steady appreciation trends, which is further supported by the expanding employment hubs and high-end users.

The KPMG report, as well as the budget 2026, has highlighted how the next phase of real estate growth will be led by Tier-II and Tier-III cities. Jaipur is one of the cities that stand at the front of these transformations.