In seven major Indian cities, sales of apartments surged by 20% between January and March of 2023, reaching 62,040 units, according to a survey by JLL India. This is the greatest quarterly sales in the previous 15 years. The expansion of the infrastructure, government initiatives, and aggressive launches were some of the reasons that contributed to the residential market’s rise in India in the first quarter of 2023. Bengaluru, Mumbai, and Pune were the top three cities in terms of quarterly sales, with Bengaluru dominating with a 21% market share.
With a 22% share of total sales, the luxury sector of apartments costing more than Rs 1.5 crore reflected the growing desire for larger residences with high-quality facilities and supporting infrastructure.
India offers a wide range of fascinating opportunities for real estate investment. Property values in large cities have started to rise after previously being stagnant. Let’s look at India’s top ten real estate investment cities.
Several key factors are taken into consideration when choosing cities, including job prospects, infrastructural development, connection to other areas, accessibility to healthcare and educational facilities, safety and security, environmental sustainability, good governance, and socio-political stability.
Table of Contents
10 Most-Ideal Cities for Real Estate Investment in India
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Bangalore
Bangalore has been favoured for real estate investments mostly due to its ease of living, expanding IT parks, and manufacturing centres. Residential real estate in Bangalore is steadily increasing, especially since the pandemic. The Indian Residential Market Update- Knight Frank Report states that sales increased by almost 18% in the first quarter.
Bengaluru is ranked as the second-best market in APAC cities to watch out for in 2023 from the perspective of the residential outlook. The residential price in Bengaluru is anticipated to increase by 5% YoY, the most among the top three Indian markets monitored in the research.
Popularly known as the Silicon Valley of India, Bengaluru’s thriving IT industry attracts a great deal of significant global businesses and fresh start-ups. Additionally, this industry offers employment opportunities to students from all around India, thereby increasing the demand for apartments for sale in Bengaluru.
Bangalore is the third-wealthiest city in India and is one of the most well-liked cities in the nation because of its vibrant nightlife, diverse options for entertainment, prominent tourist destinations, and just generally an opulent way of life. Executives might benefit from hefty compensation packages and a wealth of city facilities. These desirable benefits pave the way for the construction of residential buildings.
Must Read: What is Real Estate? Meaning, Types, Characteristics!
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Delhi-NCR (Highlight Dwarka Expressway)
In India’s National Capital Region (NCR), the Dwarka Expressway is quickly becoming a prominent real estate location. Homebuyers, investors, and developers have all paid close attention to this 27-kilometre, eight-lane expressway that links Dwarka in Delhi with Gurgaon in Haryana. The Dwarka Expressway has grown to be a popular location for real estate investments for many important reasons.
First off, the Dwarka Expressway provides a fantastic connection. Two essential corporate and commercial areas in the NCR, Delhi and Gurgaon, are seamlessly connected by the expressway. Professionals working in these regions prefer it because it provides a vital connection between the Indira Gandhi International Airport (IGI) and Gurgaon’s key business districts. With multiple planned metro stations along the route, the expressway is also well-connected to the Delhi Metro network, increasing its use and convenience.
Second, with the building of contemporary residential and commercial complexes, the expressway is seeing significant infrastructure development as a growth corridor.
Third, the Dwarka Expressway offers a luxurious way of life. The area is well-planned, with broad roads, contemporary conveniences, and plenty of green space, making for a simple and comfortable way of life.
As a result of its great connection, potential for real estate appreciation, high-quality lifestyle, and variety of investment prospects, the Dwarka Expressway is quickly becoming a sought-after real estate location.
Must Visit: Flats for Sale in Gurgaon
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Chennai
Chennai is known for its striking modern-colonial harmony, which is evident in its distinctive architectural styles, cuisine, tourist attractions, etc. Due to its strong industrial sector and numerous job prospects, this city is referred to as the “Detroit of India” and is a great place for real estate investment. With the longest urban beach in the country, Chennai is a popular place amongst IT professionals. This is true since Tidal Park, the largest IT park in Asia, is situated here.
Real estate investing in Chennai might be an excellent idea for property purchasers because the prices of independent houses, apartments, and bungalows are rising swiftly. The growth of Chennai’s real estate sector is also supported by the city’s growing population. Due to the rise in students and job seekers, there is an increasing need for accommodation in the city. There are now several projects being created to suit the needs of individuals wishing to invest in real estate in Chennai.
The Chennai real estate market is expected to maintain its upward trend in 2023. The city has long been a popular place to invest in real estate, and current patterns suggest that this tendency will probably continue in the future.
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Hyderabad
Hyderabad is already one of the most popular places to invest in real estate, particularly in the housing industry. Overall, the Hyderabad real estate market is anticipated to remain strong over the next years, offering appealing opportunities for homebuyers looking for value in a bustling metropolis. The city has a great infrastructure and a reasonable cost of living. Furthermore, a vast highway system, including the NH44, NH765, etc., provides excellent access to the city.
Hyderabad’s real estate market has been expanding significantly in recent years, driven by an increase in housing demand brought on by people moving there for jobs or studying. The demand for real estate in the city has risen as a result of the growth of HITEC City, a centre for the IT and technology sectors.
Using the most recent infrastructure and technology, the state government has passed rules that are digital, transparent, and user-friendly. With 56 designated Special Economic Zones (SEZs), of which 34 are operational (the second-highest number in the nation), the state has the most SEZs in the nation.
In India, Hyderabad has the largest amount of forest cover. The city’s forest area grew by 48.66 square kilometres between 2011 and 2021. Thus, those who love the outdoors and need some fresh air will inevitably swarm to Hyderabad for real estate investment. As 3 BHKs continue to dominate the market in terms of demand and supply, buyers are choosing bigger homes. 90% of city residents who bought real estate in the recent past, sought 2- and 3-BHK apartments.
Must Visit: Flats for Sale in Hyderabad
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Mumbai
One of Asia’s most populated cities, Mumbai has 22 million citizens and welcomes tourists from all over the world. All forms of real estate in this city are extremely desirable because it is the financial hub of India. Despite the notoriously high cost of real estate in the city, there will be many opportunities to strategically engage in the local real estate market in the years to come. Mumbai real estate has expanded geographically throughout the years as new communities and areas have become more well-liked. As a result, there are now more investment opportunities in the once-expensive parts of the city.
With an emphasis on design, location, and return on investment, Mumbai’s real estate industry offers a wide range of investment projects and locations. The city of Mumbai and its surroundings provide a multitude of opportunities to produce the best returns on real estate investments, from sea-facing exotic apartments to duplex mansions to inexpensive flats. Due to the city’s continued population increase, the demand for real estate looks to be rising every year, and this trend will likely continue in the future as well.
Employment has a big impact on residential real estate in Mumbai. Residential real estate is significantly influenced by employment. In Mumbai, salary gains have increased by more than 18% since the end of the epidemic, according to a new Naukri report. This is much higher than the national average for urban regions.
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Pune
Pune, Maharashtra’s second-largest city, is renowned as the state’s cultural centre. As a thriving metropolis, it is quickly becoming a top spot for real estate investment. Pune is one of the most lucrative and practical cities to invest in residential real estate, according to the majority of investors.
Pune is the second-largest IT Hub in the nation and boasts of a tranquil atmosphere in addition to having top-notch educational institutions. One becomes even more enamoured with the city thanks to the outstanding transit that allows for seamless access to any part of the city in nearly no time. The development expectations for the approaching new regions are substantially larger than those for the city’s focal centre with carefully thought-out infrastructure due to the exponential perimeter expansion. Additionally, the real estate market in Pune offers a rare chance to invest in both commercial and residential buildings.
Property values have soared over the past ten years, providing all buyers with a significant return on their investments. Moving to Pune, which is ranked as the happiest and most livable city in the nation, might offer amazing health advantages due to its nice atmosphere and lush environment.
Must Visit: Flats in Pune for Sale
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Ahmedabad
Values of Capital and Rental After the pandemic’s standstill, things in Ahmedabad have begun to improve. The number of new releases has significantly increased, and 47% of them are in Ahmedabad East. In actuality, the city’s real estate is growing by 2-4% annually.
The visionary undertaking of our Prime Minister, Mr. Narendra Modi, is Gift City. It is expanding at an unequalled rate and over the next decade, GIFT City is expected to become one of the most sought-after financial centres worldwide. 140 businesses have pledged $11,000 crore in investments to GIFT City. Additionally, GIFT City’s average daily trade on foreign exchanges has surpassed USD 4 billion.
The only IFSC in India is in Gift City. This SEZ in Gift City offers a variety of services. IFSC now houses over 125 licensed financial institutions. The banking, insurance, and capital markets industries are the three main sectors that are allowed to establish an IFSC unit.
Low tax rates on investments made in the IFSC are permitted for NRIs and overseas investors. Additionally, IFSC has become a home for several Alternative Investment Funds (AIFs).
Must Visit: Apartments for Sale in Gift City
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Kochi
The country’s strong IT sector has established itself in the city of Kochi thanks to the Infopark and SmartCity Campuses. The cheap cost of doing business and the low cost of labour draw large multinational companies (MNCs) from all over the world.
Due to the accessibility of all forms of transportation, including road, train, air, and sea, Kochi enjoys good connectivity. The first Tier-II city with a functioning Metro Rail, Kochi’s mobility has gotten much better with the launch of the Kochi Metro Rail.
With malls and an abundance of popular, highly appealing entertainment, dining, and recreational options, the city offers the most vibrant lifestyle in the state. Due to its exposure to famous sporting competitions, fashion events, and trade exhibits, Kochi is one of Kerala’s most well-liked tourist attractions.
Kochi has a bright future vision with development and advancement that appear promising. Real estate investment here will be entirely secure and profitable. Due to its mild temperature, stunning coastline, and affordable way of life, Kochi is also a popular retirement destination.
Must Visit: Flats for Sale in Kochi
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Trivandrum
Kerala’s capital city, Trivandrum, has experienced growth in every industry during the past several years. The city is rising both vertically and horizontally, making it a magnet for real estate investments.
As the state’s capital and location of the government, Kerala has easy access to decent roads and services like water and electricity. Along with locations for amusement, including top-notch malls, there are a number of elite educational institutions, multi-speciality hospitals, and other healthcare facilities.
Trivandrum will soon have its metro rail system, known as the “Light Metro,” which is anticipated to enhance both the quality of life for its residents and the city’s development. The future Vizhinjam port is also expected to accelerate the development and economics of the city. The real estate market will expand as a result of all these causes.
Technopark, the IT cluster in Trivandrum, is growing and is expected to soon surpass all others in size in the nation. Currently, Technopark is home to over 350 Indian and international businesses that employ over 60,000 individuals from all across India. As a result, there will be a larger need for housing to accommodate the expanding population.
Trivandrum, which is perched on seven gently sloping green hills, is endowed with a wealth of scenic locations, including several alluring beaches. The city, which once served as the capital of the erstwhile Kingdom of Travancore, is also home to many stunning historic structures and popular tourist destinations for both local and foreign visitors.
Must Visit: Flats in Trivandrum for Sale
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Thrissur
Thrissur, widely referred to as the cultural centre of Kerala, has become a popular place to invest in real estate. This city is perfect for a laid-back and comfortable lifestyle because of its lush green surroundings, lovely rivers, year-round cultural activities, and historic sites. This city hosts the renowned temple festival known as Thrissur Pooram each year. A thriving business district, Thrissur is home to several upscale malls and other commercial buildings. The demand for home properties in Thrissur is rising rapidly due to the city’s strong infrastructure and connections.
A successful real estate investment ensures future high returns. Due to the huge demand in the market for houses for sale in Thrissur, they are often simple to purchase and sell. These houses have shown outstanding value growth and guarantee purchasers greater returns. Numerous purchasers are eager to relocate to Thrissur, where the real estate market is expanding quickly.
The southern and northern regions of Kerala are about equal distance from Thrissur, which is located in the state’s centre. It serves as a hub for travellers coming from other Keralan towns like Trivandrum, Kochi, Palakkad, Calicut, etc. A short drive from Kochi, Kerala’s commercial hub, places Thrissur in the perfect position for IT specialists and businesspeople. The closest airport is Cochin International Airport. With regular bus and train service that runs around the clock, Thrissur is a very commuter-friendly city.
Must Visit: Flats for Sale in Thrissur
Final Thoughts:
The following are some considerations for investing:
Research Extensively:
Before committing to a decision, do comprehensive research. To make the best choice, understand the facilities that are offered, the area’s surroundings, the builder’s history, and other factors.
Examine the Property Papers:
To prevent fraud or other issues, have legal professionals verify the property paperwork.
Check Market Pricing:
Being aware of the pricing on the market will keep you informed and might prevent you from spending too much.
Talk to Neighbours:
If you’re relocating to a new place, the best way to learn about it is to speak with your neighbours. The locals could be able to help you clear up your questions and come to a choice.
With the country’s economy projected to develop and the government’s numerous attempts to stimulate the real estate sector, real estate investing in India is predicted to be a strong investment option for 2023. The demand for residential and commercial buildings has been rising as urbanisation has also substantially increased.
Additionally, beneficial government regulations, low-interest rates, and easy access to financing make it a profitable sector to invest in. But before investing, one should do their homework because certain areas could be more profitable than others depending on infrastructural development, demographic trends, and prospective business prospects. Overall, it appears that investing in real estate in India for 2023 will be quite profitable with great potential for consistent profits.
Also Read:
How to Invest in Real Estate in India?
NRI Investment in Indian Real Estate
Why Bangalore is the Ideal City for Apartment Buyers?
FAQ’s
1. Which city is best for real estate investment in India?
Bangalore, Delhi-NCR (around the Dwarka Expressway), Gujarat’s GIFT City, Pune - especially in Kothrud, Hyderabad, and Chennai are some of the best cities for real estate investment in India. Bengaluru: Bengaluru's population and economy are expanding, and the city is home to many digital start-ups. This has increased demand for both residential and commercial buildings. Delhi: Delhi is India's capital city and the residence of many government workers, diplomats, and foreigners. Pune: Pune, a city in western India that is expanding quickly, is well-known for being close to educational institutions, IT firms, and highland resorts. Chennai is a fast-expanding metropolis with booming industrial and automotive sectors, as well as a number of IT and car firms.
2. Which city in India real estate is booming?
In India, real estate is booming in cities like Delhi, Pune, Hyderabad, and Bangalore because of their expanding economies and populations.
3. Which state has the best ROI?
Maharashtra is one of the states that has a high return on investment since it has the highest number of investors.
4. Which Indian city has the best rental yield?
Bengaluru and Hyderabad have had the best rental yield over the past five years, according to Anarock Research statistics. In 2022, the seven cities of Delhi NCR, Kolkata, Mumbai Metropolitan Region (MMR), Pune, Hyderabad, Chennai, and Bengaluru had an average property price of Rs 6150 per square foot.
5. Which is the fastest-growing city in India?
According to Oxford Economics, an independent economic advice agency, Bangalore - a city known for its high-tech industry, would be the city with the highest growth in the Asia-Pacific region in 2023, followed by Hyderabad.
7. Where is real estate growing the fastest in India?
Real estate is growing fastest in cities like Mumbai, Bangalore, Hyderabad, Pune, Chennai, and GIFT City, because of the increasing demand for housing in these cities. Job seekers are moving to these cities in search of better opportunities, thereby creating a high demand for real estate.
8. What is the future of real estate in India?
Given that both the economy and housing demand are anticipated to rise at robust rates, the future of the Indian real estate industry appears bright. In the upcoming years, the Indian real estate market is anticipated to expand gradually, making it a desirable place to invest.
