India is globally recognized as a booming economy, making it a preferred real estate investment destination for both commercial and residential properties. Still, there is always the dilemma of whether to invest in an established area or in potentially more profitable - but also potentially more risky - emerging cities.

Some cities in India offer attractive real estate investment opportunities because they are already well-established commercial hubs. For example, Mumbai, called the Financial Capital of India, is very sought-after by people making investments in commercial and residential property. But, because so many people want to invest in Mumbai, the property prices there are sky-high. In fact, according to a recent survey, renting office space in Mumbai is even more expensive than in Manhattan!

So, if you want to get maximum returns from your real estate investments, consider investing in Indian cities that are still growing, and have the necessary ingredients for long sustained economic development. Here are some cities to look out for in India:

Real estate investment in Delhi-NCR (National Capital Region)

NCR, or National Capital Region, comprises areas that are on the outskirts of the capital city of Delhi. India is working hard to become an economic superpower by 2020, for which the Delhi is getting ready with the 2021 Master Plan.

Projecting into the future, the NCR cities, including Delhi, Noida, Ghaziabad, Gurgaon, Sonepat, and Bhiwadi are set to become hot destinations for real estate investments.

A variety of NCR residential complexes are available, from middle-income housing to ultramodern duplexes and luxurious penthouses. Investments in these properties have fetched double returns since 2003/04 and buying real estate in the NCR region still makes for a very attractive investment that offers healthy profit margins.

Within the NCR region in India, Gurgaon and Manesar in Haryana are excellent for purchasing real estate as they are the hub of industrial activity and have attracted a lot of foreign direct investment from Japanese and European Companies. Good IT infrastructure and the availability of highly skilled workforce are also developing these areas into the IT capital of the India.

Real estate investment in Ahmedabad

Ahmedabad also called ‘The Manchester of the East’ is the commercial capital city of Gujarat in India. Gujarat, best known as the land of Mahatma Gandhi, has a vibrant economy, with rich agricultural produce, several industries, and active participation in the Indian stock markets.

Ahmedabad’s proximity to Mumbai is a big plus. A huge, young middle class, round-the-clock water and electricity, good roads, and a stable infrastructure makes it an attractive city for property investment compared to other cities in western India.

Ahmedabad offers you a choice of both commercial and residential properties, including high-rise buildings, palatial homes, office complexes and retail space.

Real estate investment in Pune

Pune is a vibrant city in the state of Maharashtra. Until recently, Pune was only known as an industrial town, however, India’s rapid economic growth has changed it into an urban, cosmopolitan city.

Today, Pune is an active IT hub and Infosys and WIPRO - two of India’s biggest IT companies - are planning to open sprawling campuses there. The city is also seeing a major growth in other sectors, including service industries like retail, insurance, and banking.

This change in Pune’s economic structure is reflected in the increased real estate development in the city. Construction of both commercial and residential properties is on the rise and a number of township projects are also coming up in Pune.
Buying real estate in Pune is a good investment, as you are bound to get long term capital appreciations and significant returns on your investment.

Real estate investment in Hyderabad

The picturesque city of Hyderabad in Andhra Pradesh has emerged as a popular outsourcing destination. Some time ago, Hyderabad was known for its old world charm and generally relaxed attitude to life. But today, it is one of the fastest growing cities in India.

The growth engines are largely information technology and business process outsourcing companies. A large number of big corporations have established offices and IT Parks in Hyderabad, which is also home to Ramoji Rao Film City - one of the biggest regional film studios in the world.

Large pharmaceutical companies are also making their base in Hyderabad and as these are all high growth industries, Hyderabad is another Indian city where investing in real estate will definitely offer good returns on capital.

Further reading:

India among top three global realty markets

FAQs on acquisition of property in India by a person resident outside India