Discover the list of 5 best cities to invest in real estate in India for NRIs. Investment in real estate in India is considered safe and best. Due to the increasing GDP of India, there has been a huge boom in the real estate sector. There are 4 sub-sectors in real estate – housing, hospitality, commercial and retail. The second highest employment generator in India is the real estate sector. The market size of India’s real estate sector is expected to reach US$1 trillion by 2030.
By mid-2023, sales of luxury homes in India were 130% more than last year. Blackstone, a private market investor, recently invested Rs 3.8 lakh crore (US$50 billion) and is planning to invest an additional Rs 1.7 lakh crore (US$ 22 billion) by 2030. Therefore Indian real estate also attracts NRIs. But it is very important to know which are those cities in which wealth can grow by investing. It costs lakhs/ crores of rupees to invest in real estate. Therefore, it is very important to do research before investing.
Factors to Consider for Real Estate Investment
1) Economic Growth & Stability
Economic growth means the production of goods and services over a while. It is measured in GDP. Factors like an increase in productivity, technological infrastructure investment, and population growth contribute to economic growth. Economic stability is the function of maintaining the country’s stability measures such as inflation and deflation, exchange rates, and the financial system.
2) Infrastructure Development
Infrastructure development plays an important role in the real estate of a city or country because infrastructure development includes the development of roads, highways, railways, airports, and communication. If there is no infrastructure development, real estate will not perform well.
3) Rental Yield
Rental yield reflects the return on investment of an investment made in a property. In India, 5% or more is considered a good rental yield. Along with good rental yield, the value of the property should also keep increasing.
4) Standard of Living and Facilities
The standard of living indicates whether the location has facilities like health care, education, and safety or not. Along with this, there should also be facilities like a park, gym, and swimming pool in that particular location which will help in the appreciation of the property.
List of 5 Best Cities to Invest in Real Estate in India For NRIs :
1) Mumbai
Mumbai is among the top five population cities in the world. Each year thousands of people migrate to Mumbai from rural areas because Mumbai has the best educational and health care facilities. Mumbai is the wealthiest city in India. Big business owners also live in Mumbai like Ambani, Tata Birla, etc. Before 1995, Mumbai was known as Bombay. Mumbai’s infrastructure development is very strong and is still a work in progress. The current metro area population of Mumbai in 2024 is 21,673,000. Mumbai scored the highest property registration in February 2024 in the last 12 years. According to the data of Maharashtra Government, there is an increase of 7% on month on month basis.
Upcoming Infrastructure Projects in Mumbai:
- Mumbai Trans Harbour Link
- Navi Mumbai International Airport
- Mumbai Coastal Road Project
2) Gurgaon
Gurgaon is India’s second-largest information technology hub and third-largest financial and banking hub. Gurgaon is also known as the Millennium City. The real estate market in Gurgaon is expected to be vibrant and full of opportunities. Real estate in Gurgaon is famous for high-end luxury residences and commercial real estate. Due to the development of a continuous road network, commercial corridors, and metro connectivity, the real estate of Gurgaon will further increase in the next four to five years. Gurgaon has plenty of investment opportunities across some of the city’s most prominent locations, each with its own unique attractions and growth potential.
Upcoming Infrastructure Projects in Gurgaon:
- Global City Project
- MRG World ULTIMUS 2 Sector 90, Gurgaon
- Adani Sector 99, Gurgaon
- Mahira Homes 88B, Gurgaon
3) Bengaluru
Bengaluru, officially known as Bangalore, is the capital city of the Indian State of Karnataka. With a population of over 10 million, Bangalore is a megacity. It is also the 3rd most populous City and the 5th most populous Urban collection in India. It is situated in Southern India on the Pleteau of Deccan. The city is located at an altitude of more than 900 meters (3,000 feet), which is the highest of India’s major cities. One of the most innovative cities in the world is Bangalore. Major companies such as IBM, Microsoft, Google, etc. have their headquarters in Bangalore.
Upcoming Infrastructure Projects in Bangalore:
- Shivamogga Airport
- Bangalore Chennai Industrial Corridor
- Bangalore Satellite Town Ring Road
- Bangalore Suburban Rail Project
- Bangalore Chennai Expressway
4) Chennai
Chennai is the 4th largest metropolitan city in India. By 2025, it is expected that the population of the urban area of Chennai will reach 100.70 lakh. Two members of the State Economic Advisory Council of Chennai say that Tamil Nadu will be a 1 trillion dollar economy by 2030. To achieve this target, Tamil Nadu will have to grow at the rate of 18% per annum but this has not happened to date in history. Talking about China, which is the world’s largest manufacturing hub, has grown by 10-12% in the last 40 years. Real estate in Chennai has registered an increase of 8.41% in Quarter 3 of 2023-24.
Upcoming Infrastructure Projects in Chennai:
- Chennai Metro Phase 2
- Bengaluru Chennai Expressway
- Chennai Bangalore Industrial Corridor
- Chennai Sea Bridge Project
- DLF Downtown, Chennai
5) Pune
Pune is a sprawling city in the western Indian state of Maharashtra. It is the second largest city in the state after Mumbai and is an important city in terms of its economic and industrial growth. The real estate market in Pune registered 17,570 residential units in February 2024, which is a 23% increase from February 2023 when it registered 14,284 units. Based on the most recent evaluation conducted by Knight Frank India, the city has not only maintained its growth trajectory but has also seen a significant 46% rise in property registrations compared to January of the previous year, making it the second-highest monthly performance in the last 24 months.
Upcoming Infrastructure Projects in Pune:
- Pune Metro Rail Project
- Pune Ring Road Project
- Pune Airport Expansion Project
Also Read: Best 6 Investment Options For NRI in India
