From 2023, apartment sales in seven major Indian cities shot up by 20%, hitting 62,040 units, according to a survey by JLL India. This marked the highest quarterly sales in the past 15 years. The boost in the residential market was fueled by factors like infrastructure growth, government initiatives, and active property launches. Bengaluru, Mumbai, and Pune led the quarterly sales, with Bengaluru holding a dominant 21% market share. Let’s explore 10 Best real estate investment in india 2024
The luxury apartment sector, priced above Rs 1.5 crore, captured a 22% share of total sales, indicating a growing preference for larger homes with top-notch amenities. India presents exciting opportunities for real estate investment, especially as property values in major cities are on the rise after a period of stagnation.
Choosing these cities involves considering various factors such as job opportunities, infrastructure development, connectivity to other areas, access to healthcare and education, safety, environmental sustainability, good governance, and socio-political stability.
Top 10 Best Cities for 10 Best real estate investment in india 2024
1. Bangalore
Bengaluru is a top choice for real estate investments, thanks to its comfortable living, growing IT hubs, and manufacturing centers. The residential real estate market in Bengaluru is steadily going up, especially after the pandemic. According to the Knight Frank Report on the Indian Residential Market Update, sales went up by almost 18% in the first quarter.
In 2024, Bengaluru is ranked as the second-best market in the Asia-Pacific region to keep an eye on, especially for residential prospects. The residential prices in Bengaluru are expected to increase by 5% year-over-year, the highest among the top three Indian markets mentioned in the research.
Known as the Silicon Valley of India, Bengaluru’s booming IT industry attracts major global businesses and new start-ups. This industry also creates job opportunities for students from all over India, leading to a higher demand for apartments in Bengaluru.
Being the third-wealthiest city in India, Bengaluru is popular for its vibrant nightlife, diverse entertainment options, famous tourist spots, and an overall luxurious lifestyle. Executives enjoy generous compensation packages and access to various city facilities. These perks contribute to the construction of more residential buildings in the city.
2. Delhi-NCR
The Dwarka Expressway is becoming a popular spot for real estate in India’s National Capital Region (NCR). This 27-kilometre, eight-lane expressway connects Dwarka in Delhi with Gurgaon in Haryana, drawing attention from homebuyers, investors, and developers.
One key reason is its excellent connectivity. The expressway seamlessly links two crucial corporate and commercial areas in the NCR – Delhi and Gurgaon. Professionals like it because it’s a vital connection between the Indira Gandhi International Airport (IGI) and Gurgaon’s main business districts. Planned metro stations along the route further enhance its connectivity to the Delhi Metro network.
Additionally, the expressway is witnessing significant growth with the construction of modern residential and commercial complexes, turning it into a thriving development corridor.
Moreover, the Dwarka Expressway promises a luxurious lifestyle. It’s well-planned, with wide roads, modern amenities, and ample green spaces, providing a simple and comfortable way of life.
Thanks to its excellent connectivity, potential for real estate growth, high-quality lifestyle, and various investment opportunities, the Dwarka Expressway is becoming a sought-after location for real estate.
3. Hyderabad
Hyderabad is a top spot for real estate investment, especially in housing. The real estate market in Hyderabad is expected to stay strong in the coming years, providing great opportunities for homebuyers looking for value in a busy city. The city boasts excellent infrastructure, a reasonable cost of living, and easy access through a vast highway system, including NH44 and NH765.
In recent years, Hyderabad’s real estate market has grown significantly due to increased housing demand from people moving there for jobs or education, particularly with the expansion of HITEC City, a hub for the IT and technology sectors.
The state government has implemented modern and user-friendly rules using the latest infrastructure and technology. Hyderabad has 56 designated Special Economic Zones (SEZs), with 34 currently operational, the second-highest number in the country.
Hyderabad also stands out for having the largest amount of forest cover in India, with an increase of 48.66 square kilometres between 2011 and 2021. This makes it an attractive choice for those who love the outdoors. In terms of real estate, there’s a growing trend for 3 BHK homes, as 90% of recent buyers in the city sought 2- and 3-BHK apartments.
4. Chennai
Chennai has a unique blend of modern and colonial influences seen in its architecture, food, and attractions. Known as the ‘Detroit of India’ for its robust industrial sector and job opportunities, Chennai is a great spot for real estate investment. The city, home to the longest urban beach in the country, is particularly favored by IT professionals, thanks to Tidal Park, the largest IT park in Asia.
Investing in real estate in Chennai is a smart move as property prices for houses, apartments, and bungalows are rising rapidly. The city’s real estate sector is thriving due to its growing population, driven by students and job seekers. Numerous projects are underway to meet the accommodation needs of those looking to invest in Chennai’s real estate.
Looking ahead to 2024, the Chennai real estate market is expected to continue its upward trend. It has long been a popular choice for real estate investment, and current trends suggest that this popularity is likely to persist.
5. Mumbai
Mumbai, one of Asia’s most populated cities with 22 million residents and a global tourist destination, is a hotspot for real estate due to its status as India’s financial hub. Despite the high real estate costs, there are strategic opportunities to tap into the local market in the coming years. The geography of Mumbai’s real estate has expanded over time, offering investment opportunities in once-expensive areas.
Mumbai’s real estate sector, focusing on design, location, and return on investment, presents a variety of projects and locations. From sea-facing luxury apartments to duplex mansions and affordable flats, the city and its surroundings offer diverse investment options. With the city’s growing population, the demand for real estate is expected to rise, likely continuing in the future.
Employment plays a significant role in Mumbai’s residential real estate, with salary gains surpassing 18% since the end of the epidemic, as reported by Naukri. This increase is well above the national average for urban areas, contributing to the ongoing demand for real estate in the city.
6. Ahmedabad
After the pandemic slowdown, Ahmedabad is showing signs of improvement in both property values and rentals. There’s been a significant increase in new property releases, with 47% of them located in Ahmedabad East. The city’s real estate is experiencing an annual growth of 2-4%.
A noteworthy initiative by Prime Minister Narendra Modi is Gift City, which is expanding rapidly. Over the next decade, GIFT City is expected to become a highly sought-after global financial center, with 140 businesses committing investments of $11,000 crore. GIFT City’s average daily trade on foreign exchanges has exceeded USD 4 billion.
Gift City is home to India’s only International Financial Services Centre (IFSC), offering a range of services. With over 125 licensed financial institutions, the IFSC primarily caters to the banking, insurance, and capital markets sectors. It also provides low tax rates on investments for NRIs and overseas investors, making it an attractive hub for various financial activities, including Alternative Investment Funds (AIFs).
7. Pune
Pune, the second-largest city in Maharashtra and a cultural hub, is gaining popularity as a prime location for real estate investment. According to many investors, Pune is considered one of the most profitable and practical cities for investing in residential real estate.
Being the second-largest IT hub in the country, Pune offers a peaceful environment and boasts top-notch educational institutions. The city’s excellent transportation system allows easy access to any part of the city in a short time, making it even more attractive. The upcoming new regions in Pune have higher development expectations compared to the central area, thanks to well-planned infrastructure accommodating the city’s exponential growth. Pune’s real estate market also presents a rare opportunity to invest in both commercial and residential properties.
Over the past decade, property values in Pune have seen a significant increase, providing substantial returns for investors. Moving to Pune, rated as the happiest and most livable city in the nation, could offer health benefits due to its pleasant atmosphere and lush surroundings.
8. Trivandrum
Trivandrum, the capital of Kerala, has seen growth in all sectors over the past few years, making it a hotspot for real estate investments. The city is expanding both vertically and horizontally.
Being the state’s capital and government hub, Trivandrum enjoys easy access to good roads and essential services like water and electricity. Alongside recreational spots, such as top-notch malls, the city boasts elite educational institutions, multi-speciality hospitals, and healthcare facilities.
The upcoming Light Metro rail system and the future Vizhinjam port are expected to further enhance the quality of life and spur the city’s development. These developments are likely to boost the real estate market.
Technopark, Trivandrum’s IT cluster, is growing and is poised to become the largest in the country. Currently hosting over 350 Indian and international businesses with a workforce of over 60,000, the increasing population will demand more housing.
Perched on seven green hills, Trivandrum offers scenic locations, including beautiful beaches. With a rich history as the former capital of the Kingdom of Travancore, the city features stunning historic structures and popular tourist destinations, attracting both local and international visitors.
9. Kochi
The IT sector in the city of Kochi has thrived, thanks to Infopark and SmartCity Campuses. The city attracts large multinational companies (MNCs) worldwide due to the low cost of doing business and affordable labor.
Kochi is well-connected through various modes of transportation, including road, train, air, and sea. It’s the first Tier-II city with a functional Metro Rail, improving mobility significantly.
Known for its lively lifestyle, Kochi offers malls and a plethora of popular entertainment, dining, and recreational options. The city hosts famous sporting events, fashion shows, and trade exhibits, making it a favorite tourist destination in Kerala.
With a promising vision for development and advancement, Kochi is a secure and profitable choice for real estate investment. Its mild climate, beautiful coastline, and affordable lifestyle also make Kochi a popular retirement destination.
10. Thrissur
Known as the cultural hub of Kerala, Thrissur has become a popular destination for real estate investment. The city offers a laid-back and comfortable lifestyle with its lush green surroundings, picturesque rivers, year-round cultural activities, and historic sites. Thrissur is famous for hosting the annual temple festival called Thrissur Pooram. It also boasts a thriving business district with upscale malls and commercial buildings, leading to a rising demand for residential properties.
Investing in real estate in Thrissur promises high future returns, given the strong infrastructure and connectivity of the city. The market for houses in Thrissur is robust, making it easy to buy and sell properties with excellent value growth. Many individuals are eager to move to Thrissur, contributing to the rapid expansion of the real estate market.
Located in the central part of the state, Thrissur is equidistant from the southern and northern regions of Kerala. It serves as a central hub for travelers from other towns like Trivandrum, Kochi, Palakkad, Calicut, etc. With its proximity to Kochi, Kerala’s commercial hub, Thrissur is an ideal location for IT professionals and businesspeople. The Cochin International Airport is the nearest airport, and the city is easily accessible through regular bus and train services, making Thrissur a commuter-friendly destination.
Conclusion
Before making a decision, do thorough research. To choose wisely, know about the facilities, the neighborhood, the builder’s track record, and other important factors
If you’re moving to a new place, talking to your neighbors is the best way to get the scoop. They can help you with your questions and guide you in making a decision.
In 2024, real estate investing in India is expected to be a strong option. The country’s economy is set to grow, and the government’s efforts to boost the real estate sector make it a promising investment. The demand for both residential and commercial properties is on the rise due to increased urbanization.
Government regulations, low-interest rates, and easy access to financing make real estate a profitable sector to invest in. However, it’s essential to do your homework before investing, as certain areas may offer more profit potential based on infrastructure, demographics, and business prospects. Overall, real estate investment in India for 2024 seems to be a profitable venture with the potential for consistent profits.
FAQ’s
Q1. Which city is best for real estate investment in India?
Bangalore, Delhi-NCR (near Dwarka Expressway), Gujarat’s GIFT City, Pune (especially in Kothrud), Hyderabad, and Chennai are great cities for investing in real estate in India. Bengaluru, in particular, is booming with a growing population and economy, and it’s a hub for digital start-ups.
Q2. Which state has the best ROI?
Investing in Maharashtra brings good returns because it attracts the most investors among all states.
Q3. Which city in India real estate is booming?
In India, real estate is thriving in cities like Delhi, Pune, Hyderabad, and Bangalore due to their growing economies and populations.
Q4. Which is the fastest-growing city in India?
Oxford Economics, an independent economic advisory firm, predicts that Bangalore, renowned for its high-tech industry, will experience the highest growth in the Asia-Pacific region in 2024, followed by Hyderabad.
Q5. Which Indian city has the best rental yield?
Research data shows that Bengaluru and Hyderabad had the highest rental yield in the last five years. In 2024, the average property price across Delhi NCR, Kolkata, Mumbai Metropolitan Region (MMR), Pune, Hyderabad, Chennai, and Bengaluru was Rs 8150 per square foot.