Hyderabad is fastest growing city driven by real estate growth: Report  

November 19, 2024: 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.

According to the report, Bengaluru follows as the second fastest-growing city, because to 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

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 cities have distinct opportunities to accentuate sustainable and inclusive urban development in the country.”

Socioeconomic

Bengaluru – India’s Silicon Valley ranks highest on 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, as evidenced by strong real estate sales in recent years. The city continues to solidify its reputation as a prime destination for global investments and talents.

Ranking basis the parameter of socio economics

Source – Knight Frank India

Real Estate

Hyderabad’s real estate sector growth outperforms other cities

According to the report, the relative strength of Hyderabad is centred in its growing real estate market, scoring highest among the six cities in the real estate parameter. The city has witnessed the highest growth rate of 10% (CAGR) in residential launches over the past decade. In 2023, Hyderabad witnessed a 11% increment in residential prices indicating desirability for both investors and end users. Furthermore, the city has been witnessing massive investments in transport infrastructure, further accentuating real estate development. Bengaluru ranks second in real estate but remains the top choice for commercial occupiers, with sustained growth in residential real estate.

Ranking basis the real estate parameter

Source – Knight Frank India

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

Source – Knight Frank India

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 ranks among the top cities for information security and privacy, showcasing its commitment to digital advancement.

Ranking basis the parameter of governance

Source – Knight Frank India