Knight Frank India’s latest report India Prime City Index report mentions that Hyderabad stands out as the fastest-growing city, driven by robust infrastructure development, surging real estate demand, a rising population of UHNWIs and HNWIs, and proactive policy initiatives enhancing its socio-economic profile. In this report, Knight Frank India analyses the performance of six leading Indian cities across diverse growth parameters.
Growth Parameters
- Overall Ranking
- Real Estate Landscape
- Socioeconomic
- Physical Infrastructure
- Governance
Hyderabad, The thriving IT hub.According to the report, Hyderabad real estate is the city's strength with sales increasing by 6% year-on-year and investment opportunities in Hyderabad. Bengaluru follows as the secondary real estate markets and fastest-growing city, because of its exceptional talent pool and dynamic business ecosystem fuelling entrepreneurship. Meanwhile, Mumbai-MMR maintains steady growth across all metrics, reaffirming its position as India’s financial capital, and Delhi-NCR ranks highest for its superior physical infrastructure and governance.
Overall Ranking
1. Hyderabad
2. Bengaluru
3. Mumbai
4. Delhi-NCR
5. Ahmedabad
6. Chennai
The six major cities ranked overall
Gulam Zia, senior executive director, Knight Frank India, said, “India’s emergence as a global economic powerhouse is underpinned by the exceptional performance of a select group of cities that have transformed into economic and cultural hubs. Each of the six major cities has distinct opportunities to accentuate sustainable and inclusive urban development in the country."
Hyderabad: The report noted that the city’s strength lies in its real estate market, which is the parameter where it scores the highest among all. The annual residential sales in the city increased by 6% YoY on citizens prioritising lifestyle upgrades and market trends and increased home sales, preferring well-established areas rich with amenities. The city’s growth was aided by the quality of living and growing opportunities related to education, health and foreign investment Investment opportunities in Hyderabad. Hyderabad’s per capita income compound annual growth rate (CAGR) stood at 19.3%.
Bengaluru: The city emerged as the winner in socio-economic development, driven by its robust service sector attracting skilled workforce from across India and abroad, the report said. The per capita income CAGR for the city was 18%. Bengaluru continues to be the thriving it sector region for commercial occupiers, accounting for 21% of the total transactions among the leading cities. Despite governance challenges impacting public services and urban planning, the city has maintained its position as a preferred destination for investments from all around the world.
Mumbai-MMR: India’s financial capital ranked third, continuing to be a powerhouse of economic activity and being the city with headquarters of major leading financial institutions and stock exchanges. Over the past few years, the city has seen substantial infrastructural development with the implementation of large-scale projects including the Navi Mumbai airport, coastal road development and metro rail expansion. However, the disparity among socio-economic classes is a major challenge hindering Mumbai’s growth. Notably, the challenges are being addressed by various initiatives across the city. The city’s per capita income CAGR was 14%.
Delhi-NCR: The National Capital Region (NCR) showcases strong governance and robust infrastructure with administrative reforms focused on improving efficiency and transparency, the report said. The Delhi Metro is the largest operational metro network in the country, covering 350 km. Its initiatives including digital governance, citizen-centric services, and infrastructure development projects highlight its commitment to growth. With Delhi’s per capita income CAGR at 8%, the city faces challenges in maintaining continuous economic growth with its lowest rate of workforce participation and employment among the six cities.
Ahmedabad: Ahmedabad ranks fifth, benefiting from stable government practices and improving physical infrastructure. The growth in the city is supported by urban development and social welfare initiatives. It has a strong industrial base and is emerging as an economic hub in Gujarat, particularly in sectors like pharmaceuticals, chemicals and IT. The city hosts major industrial estates, including the Sanand Industrial Estate and GIFT City, which have improved job creation and helped the growth of educational institutions. The city is home to quality connectivity, an upcoming high-speed rail network and business-friendly policies and has a per capita CAGR rate of 9%.
Chennai: Chennai ranks sixth due to relatively slower growth and performance across key parameters as compared to other cities in this study. The city is known for its vibrant cultural heritage and is a major industrial hub, especially in the automotive and IT sectors. The city's status as a commercial and industrial centre has created several job opportunities and has driven demand for residential properties. The commercial real estate sector in the city has also observed substantial growth. As the leading hub for Global Capability Centres, Chennai recorded a total area transacted of 6.02 million sq. ft., the highest among cities studied. Its per capita income CAGR stood at 10%.
Real Estate Growth
Hyderabad real estate market growth outperforms other cities
According to the report, the relative strength of Hyderabad is centred on its growing real estate investments, scoring highest among the six cities in the real estate landscape. The city has witnessed the highest growth rate of 10% (CAGR) in residential launches in real estate prices and property prices over the past decade. In 2023, We witnessed an 11% increment in Hyderabad real estate prices and housing sales indicating desirability for both investors and end users. Furthermore, the city has been witnessing massive investments in transport infrastructure like the outer ring road and spacious layouts, further accentuating real estate development in the second quarter. Bengaluru ranks second among the major cities in real estate markets but remains the top choice for commercial occupiers, with sustained growth in the residential real estate market.
Ranking basis the real estate growth
1. Hyderabad
2. Bengaluru
3. Mumbai
4. Delhi – NCR
5. Ahmedabad
6. Chennai
Socioeconomic
Bengaluru – India’s Silicon Valley ranks highest on the socio-economic scale
As per the report, Bengaluru has demonstrated remarkable socio-economic growth, driven by its thriving service sector that attracts a highly skilled workforce from across India and beyond. The city boasts the highest workforce participation rate in the country at 76% and an unemployment rate of just 1.8%—the lowest among the six cities analysed. Despite recent challenges in the start-up ecosystem, Bengaluru’s economic profile remains resilient due to its diverse business activities, and new launches as evidenced by strong real estate sales and increased property prices in recent years. The city continues to solidify its reputation as a prime destination for global investments and talent.
Ranking basis the parameter of socio-economics
1. Bengaluru
2. Hyderabad
3. Mumbai
4. Chennai
5. Delhi-NCR
6. Ahmedabad
Physical Infrastructure
Delhi-NCR boasts of competitive physical infrastructure
The report highlights that Delhi, the national capital, leads the rankings in physical infrastructure. Home to India’s largest metro network, the Delhi Metro boasts a daily ridership of 6.8 million and spans over 350 km, ensuring seamless connectivity across the National Capital Region (NCR). The city continues to strengthen its urban infrastructure with projects like the Eastern Peripheral Expressway. Among the six cities analysed, Delhi-NCR also offers the highest availability of green and open spaces. Additionally, the region benefits from a well-developed healthcare infrastructure, featuring top-tier hospitals and medical research institutions that contribute to a higher life expectancy.
Ranking basis the parameter of physical infrastructure
1. Delhi-NCR
2. Hyderabad
3. Mumbai
4. Bengaluru
5. Ahmedabad
6. Chennai
Governance
Delhi-NCR showcases strong governance capabilities
Delhi-NCR’s e-governance initiatives, such as the Delhi Government Services Portal, provide streamlined and user-friendly access to public services, with regular updates enhancing user experience, mentions the Knight Frank Indian report. Alongside Delhi, Hyderabad and Ahmedabad also rank among the top cities for information security and privacy, showcasing their commitment to digital advancement.
Ranking basis of the parameter of governance
1. Delhi-NCR
2. Hyderabad
3. Ahmedabad
4. Mumbai MMR
5. Bengaluru
6. Chennai
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