Lucknow, Bhubaneswar, Indore: 30% Returns On Real Estate? Check New Property Hotspots

For decades, owning a home has been milestone for families. While metropolitan cities like Delhi, Mumbai, and Bangalore have traditionally dominated the real estate market recently a shift is being noticed as as Lucknow, Bhubaneswar and Indore with 30% price appreciation emerge as the new growth hubs.

Mudassir Zaidi, Executive Director North, Knight Frank India in an exclusive conversation with Republic Business said “Apart from the top 8-10 cities like Delhi, Mumbai, and Bangalore, state capitals, tier-2 and tier 3 cities such as Lucknow, Jaipur, and Chandigarh have shown tremendous growth in real estate prices".

"High-demand areas in Lucknow have experienced price increases of 25-30% annually. The city’s connectivity, expanding commercial hubs, and improving social infrastructure makes it a lucrative option," Zaidi added.

Jaipur and Chandigarh have also seen similar appreciation in property prices. Both have become key regional hubs with a focus on tourism and residential growth.

Growing demand for commercial and residential properties has elevated Bhubaneswar and Indore status as regional investment magnets.

Why smaller cities are thriving

Zaidi attributes the rising interest in tier-2 and tier-3 cities to a combination of factors like affordability, Improved roadways, railways, and air connectivity. Also, Government programs like the Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have been contributing to this growth.

What's ideal for young homebuyers

When asked about the right age to start consodering buying home  He explained, “For someone from a smaller city, investing in their hometown feels less daunting compared to buying property in a metro.

He advised millennials and Gen Z to focus on affordable properties in emerging markets. “Buying a home early, even in the periphery or in one’s hometown, is a wise step. It may not be your dream home initially, but it sets the foundation for long-term wealth creation,” he said.

Metropolitan markets: Still relevant?

​When asked if its a bad idea to put money in real estate of metropolitan cities like delhi-ncr, bangalore and mumbai because it has reached a point of stagnation.

"No, I don't think the market in Delhi-NCR, Bangalore, or Mumbai is stagnating. While price growth has slowed compared to the 15-25% annual returns seen earlier due to new projects launching at higher prices, we are now looking at single-digit growth rather than double digits," he answered.

"This is a cyclical market, and while it won’t be unidirectional forever, I believe there are still a few years of decent growth left before demand wanes or prices start to decline," he further said. In Mumbai premium real estate continues to attract HNIs and NRIs. in Bangalore The IT sector drives steady demand for residential properties. and in Delhi Prime localities like Lutyens’ Delhi and South Delhi retain their allure.

Whats the scene in Delhi-NCR?

In the Delhi-NCR region, Gurgaon has seen highest growth, contributing about 50% of the market in terms of volumes, up from 25% in the longer-term average. This growth has doubled Gurgaon's market size in value, making it a key driver compared to Greater Noida and other areas, which previously led in volumes. While places like Noida and Greater Noida have seen steady growth, Gurgaon's price increases and development have been disproportionately higher.

Gurugram has grown quickly thanks to its closeness to the Delhi airport, a strong business environment, and high-end residential projects designed for wealthy buyers. Better metro connectivity and ongoing infrastructure projects have also made it more attractive. On the other hand, Noida and Greater Noida have struggled to keep up due to slower infrastructure development and delays in completing projects.