Which are the fastest growing cities in India? It is a question which attracts lot of attention.
But the problem with this question is, which parameter shall be used to ‘quantify fast growth’ of cities.
To make it easy, I decided to use property rates as one yard stick.
The city whose property rate is growing fastest, will be tagged as the fastest growing city.
While we talk about the fast growth, we also hear news about real estate market going slow.
But at the same time, when we read about property rates in Metro cities, it is touching the sky.
The rental yield of big cities has depreciated to below 3.5% per annum.
So what is the fact, real estate market has slowed down or it is just a misnomer?
I decided to do a small research on few top Indian cities of India.
The study was done to understand how the property rates have varied in these cities in last 5 to 8 years. The study was really worth the time.
The number of realisation that I had is worth sharing with my readers.
I always assumed that Mumbai, New Delhi, Bangalore are few cities which are best real estate investment destinations for capital appreciation. But the fact was slightly different.
After my study, names of few new cities has emerged which are growing faster.
Out of these new cities, some are such whose property (residential) rates are increasing faster than Mumbai & New Delhi.
Fastest Growing Cities in Term of Property Rates
#1 CHENNAI
Yes, its not Mumbai, not Delhi and not even Bangalore.
Chennai is the city whose property rates are increasing at the fastest rates.
According to recent index published by National Housing Bank (NHB), in last 8 years, property rates in Chennai has increased @ 17.53% per annum.
On an average, property rates of residential apartments prevailing in Chennai is Rs 7,000 /sq-ft.
Top 3 costliest areas in Chennai are:
- Alwarpet (Rs 17,000/sq-ft),
- Egmore (Rs 16,000/sq-ft) &
- Raja Annamalai Puram (Rs 15,800/sq-ft).
#2. PUNE
After Chennai, Pune is the next in the list of fastest growing city in India.
In Pune, property rates are increasing at the second fastest rates.
According to recent index published by National Housing Bank (NHB), in last 8 years, property rates in Pune has increased @ 12.19% per annum.
On an average, property rates of residential apartments prevailing in Pune is Rs 6,900 /sq-ft.
Top 3 costliest areas in Pune:
- Prabhat Road (Rs 17,000/sq-ft),
- Boat Club Road (Rs 16,300/sq-ft) &
- Law College Road (Rs 16,200/sq-ft).
#3. BHOPAL
Bhopal is a city that makes a surprised entry into the Top 5 list.
In Bhopal, property rates are increasing at the third fastest rates.
According to recent index published by National Housing Bank (NHB), in last 8 years, property rates in Bhopal has increased @ 11.51% per annum.
On an average, property rates of residential apartments prevailing in Bhopal is Rs 2,600 /sq-ft.
Top 3 costliest areas in Bhopal are:
- Arera Colony (Rs 3,000/sq-ft),
- Hoshangabad Rd (Rs 2,700/sq-ft) &
- Katara Hills (Rs 2,300/sq-ft).
#4. MUMBAI
Mumbai is a city that I thought should have been at top of this list.
In Mumbai, property rates are increasing at the fourth fastest rate in India.
According to recent index published by National Housing Bank (NHB), in last 8 years, property rates in Mumbai has increased @ 11.45% per annum.
On an average, property rates of residential apartments prevailing in Mumbai is Rs 22,000 /sq-ft.
Top 3 costliest areas in Mumbai are:
- Walkeshwar (Rs 71,000/sq-ft),
- Malabar Hill (Rs 70,000/sq-ft) &
- Cuffe Parade (Rs 69,000/sq-ft).
#5. FARIDABAD
Faridabad is also a city that makes a surprised entry into the Top 5 list.
In Faridabad, property rates are increasing at the fifth fastest rates in India.
According to recent index published by National Housing Bank (NHB), in last 8 years, property rates in Faridabad has increased @ 10.61% per annum.
On an average, property rates of residential apartments prevailing in Faridabad is Rs 4,700 /sq-ft.
Top 3 costliest areas in Faridabad are:
- Charmwood Village (Rs 8,600/sq-ft),
- Charmwood Village (Rs 8,500/sq-ft) &
- Suraj Kund Badkhal Road (Rs 2,300/sq-ft).
Fastest growing cities in India
(Updated as on April’2018)
- Mumbai – 20.64%
- Kolkata – 17.99%
- Gurgaon – 14.03%
- Bangalore – 11.86%
- Pune 10.66%
Check this link to find a list Top 20 Indian cities with their property rates and growth in last 1 year…
Please make a blog post on which cities have the highest growing RENTAL YIELDS. Thank you
your points are well put and organized. create/update dates are missing and updating all is a continuous effort.