Bengaluru, November 19, 2024: In its latest India Prime City Index report, Knight Frank India analyses the performance of six leading Indian cities across diverse growth parameters. Among them, 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.

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. 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.

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.”

Hyderabad’s real estate sector growth outperforms other cities

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.

Delhi NCR boasts of competitive physical infrastructure

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.

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. Alongside Delhi, Hyderabad and Ahmedabad also ranks among the top cities for information security and privacy, showcasing its commitment to digital advancement.