What is Central Business District?

Lipika Pandey L

A central business district (CBD) is the business and commercial center or spot of a city. It contains commercial and business space and workplaces. In bigger urban cities, it is often inseparable from the city’s “financial district”.

Geographically, it frequently matches with the “downtown” or “city center”. In any case, these ideas are not fundamentally unrelated: numerous urban cities have a central business district found away from its business as well as a social center or city center/downtown, or even several CBDs at once. The CBD is described as the region inside a city with the most accessibility in addition to having more variety and concentration of specified goods and products than some other regions.

CBD_ © 99 acres

The term Central Business District (CBD) is generally involved in commercial real estate and is characterized as the functional region of a city that has the most concentration of business, retail, and commercial centers. It has the greatest metropolitan or urban density in comparison to other districts of the town and offers a sound climate for carrying out various business activities.

CBD Then vs Now

Earlier, CBDs were the market squares where dealers and clients assembled to sell and purchase things. However, as urban areas developed, land shortage and expanding demand reduced horizontal expansions and gave way to vertical developments.

But now, CBDs are a diverse area in metro cities that not just incorporate retail spaces, businesses, workplaces, financial institutions, government centers, and clinical centers, yet entertainment centers, eateries, restaurants, hotels, inns, and residential areas. This improvement has given another lease of life to CBDs.


A few examples of CBDs in India are: CBD Belapur, Navi Mumbai; Connaught Place, New Delhi; Netaji Subhas Road, Kolkata; Poona mallee High Road and Armenian Street, Chennai

Growth of CBD

CBDs offer the best framework set-up expected for a favorable business environment, for example, multi-story structures, quality work areas, smooth connectivity, sufficient water and power supply, and parking areas. Therefore, the average per square feet rate in CBD is higher than other business communities in the city. 

The shape and type of a CBD quite often closely reflect the city’s history. Urban cities with solid conservation laws and building height limitations to hold the character of the historic and cultural center will have a CBD quite a distance from the downtown or city center. This practice is very normal for European cities like Moscow, Paris, or Vienna. In cities of the New World that developed rapidly after the creation of modern transportation, as in, road or rail, a solitary central region or downtown will regularly contain a large portion of the district’s tallest structures and act both as the CBD and the business and cultural downtown.


Subscribe To Our Newsletters

We don’t spam! Read our privacy policy for more info.


To be updated with all the latest blogs, news and special announcements.