As per the latest India Prime City Index report by Knight Frank India analysing the top six cities in India on several parameters, Hyderabad stood out as the top contender with robust infrastructure development and improving socio-economic conditions.
“Hyderabad outperforms other cities, driven by its robust growth across various social economic parameters and strategic positioning in key sectors,” the report read.
Bengaluru takes the second spot on the back of its exceptional talent pool and the business environment that has a vibrant startup ecosystem inviting global attention and investment.
Coming third is Mumbai-MMR, depicting a complex socio-economic landscape and being a hub for economic and financial growth in the country.
Notably, Delhi-NCR ranks first on the physical infrastructure and governance parameters. The national capital region stood fourth overall, followed by Ahmedabad and Chennai at fifth and sixth positions, respectively.
“These six cities have consistently demonstrated exceptional growth metrics, outpacing the national average on various economic indicators. Their performance is a testament to their ability to attract investments, foster innovation, and create employment opportunities,” Gulam Zia, Senior Executive Director, Knight Frank India, said in the report.
The top six cities
Hyderabad: The report noted that the city’s strength lies in its real estate market, which is the parameter where it scores the highest among all. The annual residential sales in the city increased by 6% YoY on citizens prioritising lifestyle upgrades and preferring well-established areas rich with amenities. The city’s growth was aided by the quality of living and growing opportunities related to education, health and foreign investments. Hyderabad’s per capita income compound annual growth rate (CAGR) stood at 19.3%.
Bengaluru: The city emerged as the winner in socio-economic development, driven by its robust service sector attracting skilled workforce from across India and abroad, the report said. The per capita income CAGR for the city was 18%. Bengaluru continues to be the favourite region for commercial occupiers, accounting for 21% of the total transactions among the leading cities. Despite governance challenges impacting public services and urban planning, the city has maintained its position as a preferred destination for investments from all around the world.
Mumbai-MMR: India’s financial capital ranked third, continuing to be a powerhouse of economic activity and being the city with headquarters of major leading financial institutions and stock exchanges. Over the past few years, the city has seen substantial infrastructural development with the implementation of large-scale projects including the Navi Mumbai airport, coastal road development and metro rail expansion. However, the disparity among socio-economic classes is a major challenge hindering Mumbai’s growth. Notably, the challenges are being addressed by various initiatives across the city. The city’s per capita income CAGR was 14%.
Delhi-NCR: The National Capital Region (NCR) showcases strong governance and robust infrastructure with administrative reforms focused on improving efficiency and transparency, the report said. The Delhi Metro is the largest operational metro network in the country, covering 350 km. Its initiatives including digital governance, citizen-centric services, and infrastructure development projects highlight its commitment to growth. With Delhi’s per capita income CAGR at 8%, the city faces challenges in maintaining continuous economic growth with its lowest rate of workforce participation and employment among the six cities.
Ahmedabad: Ahmedabad ranks fifth, benefiting from stable government practices and improving physical infrastructure. The growth in the city is supported by urban development and social welfare initiatives. It has a strong industrial base and is emerging as an economic hub in Gujarat, particularly in sectors like pharmaceuticals, chemicals and IT. The city hosts major industrial estates, including the Sanand Industrial Estate and GIFT City, which have improved job creation and helped the growth of educational institutions. The city is home to quality connectivity, an upcoming high-speed rail network and business-friendly policies and has a per capita CAGR rate of 9%.
Chennai: Chennai ranks sixth due to relatively slower growth and performance across key parameters as compared to other cities in this study. The city is known for its vibrant cultural heritage and is a major industrial hub, especially in the automotive and IT sectors. The city's status as a commercial and industrial centre has created several job opportunities and has driven demand for residential properties. The commercial real estate sector in the city has also observed substantial growth. As the leading hub for Global Capability Centres, Chennai recorded a total area transacted of 6.02 million sq. ft., the highest among cities studied. Its per capita income CAGR stood at 10%.
