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Smart Investment in Indian Smart Cities

Property investment in large Indian cities can be expensive, but the up and coming ‘smart cities’ of India can be a whole lot more affordable, leaving room for capital gain for overseas property investors.

We recently reported that the Indian property market is showing signs of recovery, and the tier-1 ‘smart cities’ look like a good bet for property investment.

Here we look at five of them.


The capital of Karnataka is an established city with stable growth. Property demand across all property types has risen over the past quarter. With properties starting from just Rs 2,500 per square foot and rising to around Rs 17,000 per square foot for more luxury properties, there is something for every investor in Bengaluru.

Connectivity is good, with the outer ring road connecting the city to all major highways. In addition, phase 1 of the metro network is already complete, with phase 2 expected to be completed within the next two years.

Bengaluru is also the growing heart of the country’s technical hub, with many multi-national companies flocking there.


Another city on the government ‘smart city’ list is Pune. In close proximity to Mumbai, the city has seen growth in the real estate market due to the growing automobile and IT sectors.

Connectivity is expected to be hugely boosted over the next 5 years with a new metro project and upcoming international airport.

With properties starting at just Rs 2,200 per square foot, rising to around Rs 15-20,000 per square foot for luxury, properties are still very affordable for investors.


The capital of Tamil Nadu is also one of the tier 1 ‘smart cities’. With 5 per cent property growth over the last quarter, it is already showing great promise for investment. Properties are still available from around Rs 3,000 per square foot, to Rs 20-30,000 for luxury.

The first phase of the metro is already half completed, with the larger second phase to follow. A new outer ring road will be completed this year to greatly improve connectivity, and the Vandalur flyover will improve the daily commute next year as well as adding a boost to residential property prices.


Ahmedabad is Gujarat’s largest business and trading hub. Properties can be found starting at Rs 2,700 and even premium properties only range from around Rs 7-9,000

The first phase of the new metro is expected by 2020, and more importantly, work on the much awaited Mumbai-Ahmedabad bullet train will begin in 2018 and is expected to be completed by 2023, connecting Ahmedabad with one of the major cities in India.


Last, but certainly not least, of the tier 1 Indian ‘smart cities’ to invest in comes Hyderabad. The most affordable city among the tier-1 cities of India, Hyderabad can offer properties from just Rs 1,400 per square foot, and even high end properties cost just Rs 3,500-5,500.

Major IT hubs such as Hitec City, Gachibowli, Kondapur and Madhapur are situated in the Hyderabad area, increasing residential property demand.

An eight-lane outer ring road is being constructed, along with the longest flyover in India to connect Hyderabad International Airport with Mehdipatnam, greatly improving connectivity. The upcoming metro at Shilparamam will give also improve connectivity in the area near the Hitec City.

If overseas property investors are looking for a smart investment, India’s tier 1 ‘smart cities’ should be considered.

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