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Mumbai, Bengaluru Unaffordable? Real Estate In These Cities Gave ‘Best Returns'. On No. 1 Spot Is...
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Investment banker Sarthak Ahuja pointed out that Tier 2 cities have delivered the best real estate returns in the past four years.
When people think of real estate investment, their attention usually turns to metro cities like Delhi, Mumbai or Bengaluru. These urban hubs attract large numbers of migrants seeking better job prospects and improved lifestyles. As more people move in, housing demand rises, pushing property prices up. This consistent growth is why metro cities are often viewed as the safest and most lucrative options for real estate investment.
But now, in a recent video, investment banker Sarthak Ahuja pointed out that it is actually Tier 2 cities that have delivered the best real estate returns in the past four years. He highlighted the data from real estate analytics firm Prop Equity, which studied 30 tier-II cities and compared property launch prices in 2020 to their market prices in 2024.
The findings are truly eye-opening. Several non-metro cities have seen remarkable surges in property prices. Trivandrum reported a 54% increase, followed by Mangalore at 57% and Bhubaneswar at 58%. Ahmedabad recorded a 60% rise, while Dehradun climbed even higher at 68%. The Chandigarh-Mohali region saw a 70% jump, with Indore close behind at 72%. Ludhiana stood out with an impressive 89% growth, and Goa wasn't far behind, posting a 90% increase.
Topping the list is Agra, which recorded a staggering 94% rise in property prices, the highest among all the cities studied.
Why Agra Is A Smart Choice For Real Estate Investment?
Tourism Boosts Demand
Agra sees around 8 to 10 million visitors every year, according to a blog by Omni Infra. The Taj Mahal alone draws huge crowds, and places like Agra Fort, Fatehpur Sikri, and Mehtab Bagh add to the city's tourist appeal. This steady flow of visitors creates strong demand for hotels, guest houses and short-term rentals. Platforms like Airbnb are doing well here with rental returns of 8 to 10 per cent in good locations. The government is also working to boost tourism through new projects like the Taj West End and improved heritage walks. All of this makes Agra a smart and growing market for real estate investors.
New Development
The Agra Metro has already started running on its first stretch, which connects key places like the Taj Mahal, Agra Fort and residential areas. More parts of the metro will open by the end of 2025. The city is also part of two major industrial corridors, the Delhi-Mumbai and Delhi-Kolkata routes, which are boosting employment and housing demands. Better roads like the Yamuna Expressway now link Agra to Delhi in just 2.5 hours, and the upcoming Jewar International Airport, about 90 km away, will further boost connectivity.
According to Omni Infra, real estate in Agra is still affordable, with prices in areas like Taj Nagri and Sikandra starting at Rs 3,500–5,000 per sq. ft. This is much lower than rates in Delhi-NCR or Mumbai. As demand for modern flats, gated societies and plots grows, prices are rising steadily. In fact, homes near Agra Metro stations have already seen a 15–20 per cent jump in the last two years.
Growth Beyond Tourism
With close proximity to the Yamuna Expressway and the planned Agra-Lucknow Expressway Extension, Agra is becoming an important growth area. New projects like IT parks and the Agra IT City are bringing in new types of jobs. Over the next 10 years, more than 50,000 jobs are expected to be created.
Agra's old and well-known areas near monuments are good for long-term investment. Because the Archaeological Survey of India (ASI) limits new construction near heritage sites, these places stay exclusive and in demand. Spots like Civil Lines and Sadar Bazaar, known for their old charm, have given steady price growth of 6–8 per cent every year, which is better than many big cities.
Government Support
According to Omni Agra, the Uttar Pradesh government is giving subsidies for affordable housing and tax rebates for heritage-related projects. Agra is also part of the Smart City Mission, which is improving sanitation, using more solar power and adding digital services.
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