NEW DELHI: World's two fastest growing economies China and India will continue to witness boom in the real estate segments in smaller cities as both countries are expected to record strong growth in residential demand in the coming years, says a report.

Further, investments volume in the two neighbouring nations is projected to go up in the next few years. According to a report prepared by the research group of Germany's Deutsche Bank, the long-term growth prospects for both countries "remain very good."

"All commercial real estate segments continue to boom Tier-II cities will gain particularly... Investment volumes are still very low. This will change rapidly in the next few years," the report titled 'Real Estate Investments in China and India: Big returns in big countries?' said.