5 Most Expensive Cities In India For Real Estate

Prices of real estate are among the most expensive in the world. (Photo credit: Wikipedia.org)

India's urban economy is growing at a fast pace and this has led to migration of people from rural areas to cities. The shift from rural to urban areas is reflected in the rising expenses of households. Cities are, after all, the hubs of political, commercial and recreational activities. And with increasing immigration from rural areas, major cities also have to deal with providing residences and consequent space crunch. No wonder that the cities in India are also some of the most expensive places to live in. We have shortlisted most expensive cities in India for real estate, based on the parameters of current property prices, social infrastructure and connectivity, development and capital appreciation.

List of Most Expensive Cities for Real Estate Investment 

1. Delhi

The capital city of India, Delhi, is also the most expensive city in India in terms of real estate. Most big companies from all industries like telecom, construction and real estate, health services and automobiles have their headquarters in Delhi. It is also the seat of India's political power. The night life of Delhi city is also one of the most exciting in the country, with its bazaars, cultural performances and watering holes.

Delhi is extensively connected to all other major cities via air, railways and road networks. The Indira Gandhi International Airport is the aviation hub of Delhi. Delhi Transportation Corporation (DTC) buses play a vital role in connecting Delhi to other parts of the national capital region (NCR), and that too at affordable fares. Also, the Delhi Metro connects the city to NCR regions.

Average price for property in Delhi: Rs. 6,899/sq.ft.

2. Mumbai

Mumbai, formerly known as Bombay, is the second most expensive city in India. Mumbai, the financial capital of India, contributes to as much as 5% of India's GDP. It is also listed among the top 10 commercial centers across the globe.

Mumbai is home to major financial institutions such as the Reserve Bank of India, Bombay Stock Exchange, SEBI, National Stock Exchange of India and the corporate headquarters of many Indian companies and MNCs. The high rate of employment opportunities in Mumbai and the glamor of the city have helped in creating a high real estate demand in the city, with a rising requirement for residential projects. The city has now extended into suburbs which have developed into metropolises themselves. Despite being the most sought after metropolis in the country, Mumbai's extensive transport -- the under-construction metro and monorail, the famed Mumbai local trains, and bus, taxi and auto fares are one the cheapest in the country. Mumbai lifestyle thrives on the fact that the cost of living can be adapted to almost all pockets.

Average price for property in Mumbai: Rs. 8,157/sq.ft.

3. Bangalore

Bangalore, also known as the Silicon Valley of India, is another most expensive real estate destination in India. This city is the number one choice for IT companies. With the influx of IT companies, this region has experienced a quick development in infrastructure, spurring the demand for property in Bangalore.

With many leading real estate developers launching their projects in commercial, retail, residential and hospitality sectors, there is growing demand for property for sale in Bangalore. Also, in recent years, walk-to-work residential projects in Bangalore are gaining more popularity.

With a well-developed infrastructure, the city is good in terms of connectivity. Bangalore International Airport is the 4th busiest airport in the country and South Western Railways, one of the 17 railway zones in India. 

Average price for property in Bangalore: Rs. 4,580/sq.ft.

Also Read: World's 5 Least Affordable Property Markets

4. Pune

Pune is the eighth largest metropolitan city in India and the second largest city in Maharashtra. After Bangalore, Pune has developed as the perfect destination for the growing number of IT companies in India. In addition, the city is growing in terms of other industries such as manufacturing.

The city is growing rapidly in terms of real estate and infrastructure. Pune is also home to some of the country's best higher education institutes. Therefore, Pune undoubtedly is promising in terms of future growth potential.

Average price for property in Pune : Rs. 4,952/sq.ft.

5. Hyderabad

Popularly known as the City of Pearls, Hyderabad's IT/ITeS, automobile and the manufacturing corridors make the city promising and expensive. The Hyderabad International Airport ranks among the best airports in the world.

Since the 1990's, the economic portfolio of the city has changed from being a mere service city to one with a varied spectrum. At present, the city deals in all major verticals, including information technology, pharmaceuticals and communications. Hyderabad is also home to some of the country's premier educational institutes like IIT-Hyderabad, BITS Pilani-Hyderabad, etc. Infrastructural developments, such as the Hyderabad Metro, have further opened up peripheral growth corridors.

Average price for property in Hyderabad: Rs. 3,760/sq.ft.

For more information about these localities, visit PropTiger.com