As the Indian economy continues to thrive and attract global attention, non-resident Indians (NRIs) are increasingly looking to invest in the country's real estate market. India's rapid urbanization and growing middle class have created a lucrative environment for both commercial and residential property investments. However, with numerous cities to choose from, it can be overwhelming for NRIs to identify the most promising locations for their investment goals.

In this comprehensive blog, we will explore India's top 10 cities from a commercial and residential real estate perspective. By examining various factors such as economic growth, infrastructure development, market trends, and investment potential, we aim to provide NRIs with the necessary insights to make informed investment decisions. Whether you're considering commercial properties for rental income or residential properties for personal use or long-term appreciation, this guide will serve as your roadmap to navigate India's real estate landscape.

Join us on this exciting journey through the dynamic Indian real estate market, where we will delve into the unique characteristics and investment opportunities offered by each of the top 10 cities. From bustling metropolises to emerging business hubs, we will uncover the potential that awaits NRIs seeking to capitalize on India's real estate boom.

Mumbai

Mumbai, known as the "City of Dreams," boasts a GDP of $606.625 billion, making it the wealthiest city in India and the 12th richest globally. It serves as a prominent financial hub and ranks among the top ten financial centers worldwide. Mumbai contributes significantly to India's economy, accounting for 6.16 percent of its GDP, 25 percent of industrial output, 70 percent of marine trade through Mumbai Port Trust and JNPT, and 70 percent of capital transactions.

The city houses several important Indian corporations, including Tata, Reliance, Aditya Birla Group, and a high concentration of billionaires in the country. Its economy thrives on sectors such as media, financial institutions, real estate, and the glamorous Bollywood industry, all of which contribute to Mumbai's allure. The city's numerous tourist attractions also play a vital role in its travel and tourism sector.

• Mumbai and its metropolitan region (MMR) saw sales increase by 43% y-o-y in 2022, from 76,396 units in 2021 to 1,09,733 units in 2022.
  

• The average property price in Mumbai was INR 10,172 (US$123) per sq. m. in 2023.

• Mumbai is one of the most preferred destinations for NRI investors due to its high rental yields, capital appreciation potential, and cosmopolitan culture.

• From luxury apartments to affordable residential property, Mumbai offers a wide range of options for NRIs across various locations such as South Mumbai, Bandra, Andheri, Thane, Navi Mumbai, and Panvel.

• Some of the key factors driving NRI demand in Mumbai are the improved regulatory environment under RERA, the stamp duty reduction by the state government, the low-interest rates on home loans, and the depreciation of the Indian rupee against major currencies.

Delhi-NCR

Delhi, the capital of the country, boasts a GDP of $370 billion, making it a prosperous and populous city. Serving as a political center, Delhi is home to renowned politicians and holds a significant position in the political landscape.

Ranked sixth among Indian states and union territories in terms of human development, Delhi exhibits a rich political and cultural heritage, steeped in historical significance. The city's allure attracts tourists from across the nation, offering delectable cuisine and thriving markets that contribute to its reputation.

Delhi's metropolitan area, encompassing commuter towns like Ghaziabad, Faridabad, Gurgaon, and Noida within the National Capital Region (NCR), is home to over 28 million people. This vast metropolitan region stands as India's and the world's second-largest, adding to the city's prominence.

• Delhi-NCR saw sales increase by 59% y-o-y in 2022, from 40,053 units in 2021 to 63,712 units in 2022.

• The average land rate in Delhi is ₹5327/sq. ft.

• Delhi is a popular destination for NRI investors due to its status as the national capital, its proximity to major employment hubs such as Gurugram and Noida, its cultural diversity, and its historical significance.

• The city offers a variety of options for NRIs, from premium apartments to plotted developments, across various locations such as Dwarka, Rohini, Vasant Kunj, Greater Kailash, and South Extension.

• Some of the key factors driving NRI demand in Delhi are the improved infrastructure development under various schemes such as Smart Cities Mission, AMRUT, and PMAY-Urban, the increased supply of affordable and mid-segment housing projects, and the attractive rental returns.

Kolkata

Kolkata, formerly known as Calcutta, served as the capital of British India. Referred to as the "City of Happiness," it holds the third position among the wealthiest urban areas in South Asia, with a recorded GDP of 150.1 billion.

Kolkata is home to several significant businesses, including Coal India and Britannia. The majority of its residents are employed in the tertiary sector, and the city is renowned for its thriving financial and commercial centers. Additionally, Kolkata is a culinary delight, especially known for its delectable traditional sweets that are a must-try.

• Kolkata witnessed a jump of 62% y-o-y in home sales in 2022, from 13,077 units in 2021 to 21,220 in 2022.

• The average property price in Kolkata was INR 5,350 (US$57) per sq. ft.
  

• Kolkata is a preferred destination for NRI investors due to its low property prices, high rental yields, and cultural heritage.

• The city offers a range of options for NRIs, from luxury apartments to affordable housing projects, across various locations such as Salt Lake City, Rajarhat-New Town, Ballygunge, and Alipore.

• Some of the key factors driving NRI demand in Kolkata are the improved connectivity and infrastructure under various projects such as the East-West Metro Corridor, Howrah Bridge, and Kolkata Airport Expansion Project, the increased supply of quality housing projects by reputed developers, and the stable political environment.

Bangalore

Bengaluru, the capital of Karnataka, is renowned as the Silicon Valley of India. It holds the fourth position among the richest cities in the country, thanks to its thriving IT sector that has earned it the title of the Silicon Valley of India.

The city is not only a hub for technology but also serves as the home of the Kannada film industry. It boasts significant contributions to the e-commerce realm, hosting well-known websites like Myntra and Flipkart. Bengaluru is also home to eight billionaires, collectively holding a net worth of $320 billion. With its rapid population growth, it stands as one of India's prominent cities.

• Bangalore saw a yearly sales increase of 49% y-o-y in 2022 – from 33,084 units in 2021 to 49,478 units in 2022.
  

• The average property price in Bangalore is 5500 to Rs. 15,000 per square feet.

• Bangalore is a preferred destination for NRI investors due to its status as the IT hub of India, its pleasant climate, and its cosmopolitan culture.

• From luxury apartments to villas available for sale, Bangalore offers a variety of options for NRIs, across various locations such as Whitefield, Sarjapur Road, Electronic City, and Hebbal.

• Some of the key factors driving NRI demand in Bangalore are the robust demand from the IT/ITeS sector, the availability of large land parcels at affordable prices, the presence of reputed developers, and the strong social infrastructure.

Chennai

Chennai, the capital of Tamil Nadu, secures the fifth position among prosperous cities. Its economy thrives on the backbone of the automobile sector, making it widely recognized for its automotive prowess.

Beyond its economic achievements, Chennai embraces a vibrant culture rooted in Tamil traditions. Acting as a gateway, the city welcomes visitors from India and abroad, offering an authentic experience of South Indian culture. With its remarkable influence in both the automobile and IT industries, Chennai is often referred to as the "Detroit of India".

• Chennai witnessed a yearly sales increase of 29% y-o-y in 2021 – from 12,525 units in 2021 to 16,097 units in 2022.

• The average property price in Chennai was INR 4446/sq. ft.

• Chennai is a preferred destination for NRI investors due to its status as the manufacturing and automobile hub of India, its coastal location, and its cultural richness.

• The city offers a range of options for NRIs, from luxury apartments to plots, across various locations such as OMR, ECR, Anna Nagar, and Adyar.

• Some of the key factors driving NRI demand in Chennai are the improved infrastructure development under various projects such as Chennai Metro Rail, Chennai Peripheral Road, and Chennai-Bengaluru Industrial Corridor, the increased supply of affordable and mid-segment housing projects, and the attractive rental returns.

Hyderabad

Hyderabad, located in Telangana, holds the sixth position among the wealthiest cities. It is also the fourth most populous city in the country. Renowned for its delectable cuisine, particularly the world-famous biryani, and vibrant culture, Hyderabad captivates visitors and residents alike.

With a population of 6.9 million within the city limits and 9.7 million in the metropolitan area, as per the 2011 Census of India, Hyderabad stands as the sixth-most populous metro area in the nation. It boasts the fifth-largest city economy in India, with a GDP of US$74 billion.

The city is home to a diverse population, predominantly consisting of multilingual Hindus, followed by Muslims and Christians as the largest religious groups. With numerous temples, mosques, and churches, tourism plays a vital role in the local economy. Hyderabad is also renowned for its IT industry and technological advancements.

• Hyderabad saw a huge 86% increase in sales, from 25,406 in 2021 to 47,487 in 2022.

• The average property price in Hyderabad was INR 4500/sq. ft.

• Hyderabad is a preferred destination for NRI investors due to its status as the emerging IT and pharmaceutical hub of India, its low cost of living, and its historical charm.

• From luxury villas available for sale in hyderabad to gated communities, Hyderabad offers a variety of options for NRIs across various locations such as HITEC City, Gachibowli, Kukatpally, and Banjara Hills.

• Some of the key factors driving NRI demand in Hyderabad are the stable political environment under the Telangana government, the favorable policies for IT/ITeS and industrial sectors, the availability of large land parcels at competitive prices, and the strong social infrastructure.

Pune

Pune, situated in the state of Maharashtra, stands as the seventh largest city in India. With a GDP of $92 billion, Pune is a thriving city known for its excellent colleges and educational institutions. Renowned as the "Oxford of the East," Jawaharlal Nehru bestowed this title upon Pune due to its wide array of universities.

Pune attracts students from around the world who come to pursue their education in this city. Its economy benefits significantly from the tourism industry, thanks to its rich cultural heritage, historical diversity, and an abundance of popular tourist destinations.

• Pune saw a yearly sales increase of 58% y-o-y in 2022 – from 35,975 units in 2021 to 57,146 units in 2022.

• The average property price in Pune was INR 4846/sq. Ft.

• Pune is a preferred destination for NRI investors due to its status as the education and IT hub of India, its proximity to Mumbai, and its pleasant climate.

• The city offers a range of options for NRIs, from luxury apartments to row houses, across various locations such as Hinjewadi, Wakad, Kharadi, and Koregaon Park.

• Some of the key factors driving NRI demand in Pune are the robust demand from the IT/ITeS sector, the availability of affordable housing projects under the PMAY scheme, the presence of reputed developers, and the strong social infrastructure.

Ahmedabad

Ahmedabad, Gujarat's largest city, holds the eighth position among the wealthiest cities, with an estimated GDP of $68 million. It is also renowned as the "Manchester of the East" due to its significant contribution to the textile sector, which forms a substantial part of the city's economy.

Beyond its economic achievements, Ahmedabad serves as a popular tourist destination, bolstering the local tourism industry. The city boasts a rich cultural heritage, and one of its notable attractions is the Calico Museum of Textiles, which houses an impressive collection of contemporary and vintage textiles.

• Ahmedabad saw a yearly sales increase of 6% y-o-y in 2021 – from 11,050 units in 2020 to 11,720 units in 2021.

• The average property price in Ahmedabad was INR 6,164 per sq. ft.
  

• Ahmedabad is a preferred destination for NRI investors due to its status as the commercial and industrial hub of Gujarat, its cultural diversity, and its heritage value.

• The city offers a variety of options for NRIs, from luxury apartments to bungalows, across various locations such as SG Highway, Bopal, Satellite, and Vastrapur.

• Some of the key factors driving NRI demand in Ahmedabad are the improved infrastructure development under various projects such as Ahmedabad Metro Rail, Ahmedabad-Dholera Expressway, and Sabarmati Riverfront Development Project, the increased supply of affordable and mid-segment housing projects and the attractive rental returns.

If you’re an NRI looking to invest in Indian Real Estate due to several factors. India's steady economic growth, government initiatives to boost the sector, and increasing infrastructure development create a conducive environment for investment. Additionally, competitive property prices and the potential for rental income make it an attractive opportunity for investors seeking long-term growth and returns.

Whether you’re looking to invest in residential property in Mumbai or luxury flats in Bangalore, our PAN India and Global real estate investment solutions helps Indian investors make informed & smart decisions.

For more details, write us at info@zoltanproperties.com or call on +91 8448448804.

Read Also: Invest In The Right Commercial Real Estate With Zoltan