In its latest India Prime City Index report, Knight Frank India has analyzed the performance of six leading Indian cities across various growth parameters. Among them, Bengaluru has shown significant socio-economic growth, driven by its thriving service sector that attracts highly skilled workers from across India and beyond. The city has the highest labor force participation rate in the country at 76% and an unemployment rate of just 1.8% – the lowest of the six cities.
Bengaluru: Resilience amid challenges
Despite recent setbacks in the start-up ecosystem, Bengaluru’s economic resilience is remarkable thanks to its diverse business activities. This is reflected in strong real estate sales over the past few years. The city continues to strengthen its position as a key destination for global investments and talent, demonstrating its enduring appeal to businesses and professionals from around the world.
Hyderabad: A Growth Powerhouse
Hyderabad emerges as the fastest growing city in India, driven by key factors:
- Strong infrastructure development promotes connectivity and urban mobility.
- Increased demand for real estate with significant growth in residential prices and launches.
- A growing population of UHNWIs and HNWIs boosts economic vitality.
- Proactive policy initiatives that raise its socio-economic profile.
Bengaluru ranks second in growth, supported by its exceptional talent pool and vibrant start-up ecosystem, which continues to foster entrepreneurship. Meanwhile, Mumbai-MMR shows consistent growth across metrics, further strengthening its position as India’s financial hub, while Delhi-NCR excels in governance and infrastructure.
Expert Insights: India’s urban powerhouses
Ghulam Zia, Senior Executive Director, Knight Frank India, Highlights:
“India’s emergence as a global economic powerhouse is driven by select cities that have become economic and cultural hubs. These cities present unique opportunities for sustainable and inclusive urban development.”
Real Estate: Hyderabad leads the way
Hyderabad’s real estate growth outpaces other cities, leading in this metric:
- 10% CAGR in residential launches over the past decade.
- Residential price growth of 11% in 2023 reflects investor and end-user confidence.
- Massive investment in transport infrastructure, real estate development will further accelerate.
Bengaluru follows closely, maintaining its position as Top choice for business Occupants while achieving continued growth in residential real estate.
Physical Infrastructure: Delhi-NCR shines
Delhi-NCR excels in physical infrastructure with:
- Delhi Metro is the largest in India, with 6.8 million daily riders and a coverage of over 350 km.
- Infrastructure upgrades like the Eastern Peripheral Expressway ensure seamless connectivity.
- Highest availability of green and open spaces in Indian cities.
- A well-developed healthcare ecosystem contributes to higher life expectancy.
Governance: Delhi-NCR sets the benchmark
Delhi-NCR demonstrates strong governance capabilities, including:
- E-governance initiatives such as the Delhi Government Services Portal streamline public service delivery.
- Leadership in information security and privacy, along with Hyderabad and Ahmedabad, reflects commitment to digital advancement.
These initiatives further strengthen Delhi-NCR’s reputation as a model for governance and urban management.