Table of Contents
- Top Cities to Invest in South India
- 1. Chennai
- 2. Hyderabad
- 3. Bangalore
- 4. Coimbatore
- Frequently Asked Questions
- 1. Which city in South India has the highest Returns on Investment (ROI)?
- 2. Which city offers better rental income and high rental yield in South India?
- 3. What are the real estate investment options available in the top cities in South India?
- 4. Who are the top builders and real estate developers in South India?
- 5. How do I invest in real estate in South India?
Top Cities to Invest in South India
Real-estate sector in South India is constantly emerging as a result of consistent demand from homebuyers and investors. The top cities in South India which would be ideal for real estate investment are Chennai, Hyderabad, Bangalore, and Coimbatore. These cities are considered the best as the property value of real estate developments is constantly on the rise with higher value appreciation. This is predominantly due to the availability of wide range of residential housing options, availability of properties at affordable prices, increased demand, and higher rental yields.
1. Chennai
Chennai is a great place for real estate investment since there is a constant need for safe and comfortable homes. Prestigious homes and affordable homes may be found all around Chennai, in and around the city. A strong economy has contributed to its rise to popularity as a real estate destination in recent years. The city is home to a large number of national and international companies in a variety of sectors, including manufacturing, petroleum, entertainment, computer hardware, software and IT, automotive, and healthcare. Given Chennai’s broad economic environment, investing in the real estate sector is a sensible and successful decision for investors.
Real estate investments in Chennai are well known for being stable and providing a positive return on investment, which makes them an ideal path to financial security. Some of the other significant factors that make Chennai an ideal destination for real estate investment are high rental yield, better return on investment, better economic growth, excellent infrastructure, and seamless connectivity.
Chennai’s real estate sector offers a comfortable and secure future, allows diversification, and offers better investments. From luxurious villas to reasonably priced apartments, this city has a lot to offer in terms of housing choices. Some of the top localities in Chennai that are ideal for real estate investments are Tambaram, Porur, Velachery, OMR, Urapakkam, Korattur, Medavakkam, Pallikaranai, Ambattur, and Sholinganallur.
| Localities | Property Appreciation Value for Apartments in the Last Year (in %) | Property Appreciation Value for Villas in the Last Year (in %) | Property Appreciation Value for Plots in the Last Year (in %) |
| Tambaram | 10.7 | 117.4 | 18.7 |
| Porur | 5.2 | 1.01 | 28.8 |
| Velachery | 16.4 | 8.8 | 85 |
| OMR | 2.2 | 76.7 | 10.2 |
| Urapakkam | 1.4 | 8 | 79.1 |
| Korattur | 7.1 | 6.3 | 8.8 |
| Medavakkam | 5.6 | 10.8 | 4.4 |
| Pallikaranai | 5 | 74.2 | 43.9 |
| Ambattur | 1.8 | 14.4 | 1.8 |
| Sholinganallur | 9 | 16.5 | 15.4 |
2. Hyderabad
Hyderabad has become one of the preferable cities among homebuyers and investors due to its growing economy and excellent infrastructure. With its improved infrastructure in the recent years Hyderabad has better road and rail connectivity. The proposed metro plans will also enhance connectivity in the upcoming years. Apart from this, Hyderabad also holds various employment opportunities as a result of the growing IT field. In addition to this, the cost of living in Hyderabad is comparatively low which attracts the interests of homebuyers and investors.
Hyderabad’s real estate has solid rental yields and higher capital appreciation. Studies state that the average rental yield in Hyderabad is somewhere around 3% and 7% per year. The appreciation of property values in Hyderabad mount to 5% to 10% in year. The government initiatives in Hyderabad also plays a significant role in boasting the real estate market.
Hyderabad offers affordable properties when compared with other prominent metropolitan cities. A variety of residential alternatives, including budget-friendly flats, independent homes, affordable villas, and plots, are available in the Bangalore real estate market. Some of the best places in Hyderabad to invest in real estate are Kondapur, Gachibowli, Narsingi, Bachupally, Kollur, Tellapur, Kokapet, LB Nagar, Nallagandla, and Manikonda.
| Localities | Property Appreciation Value for Apartments in the Last Year (in %) | Property Appreciation Value for Villas in the Last Year (in %) | Property Appreciation Value for Plots in the Last Year (in %) |
| Kondapur | 3.9 | 72.9 | 33.2 |
| Gachibowli | 7.2 | 11.7 | 33.3 |
| Narsingi | 22.7 | 73.2 | 21 |
| Bachupally | 12.4 | 50.2 | 3.2 |
| Kollur | 2.04 | 71.7 | 15.4 |
| Tellapur | 1.6 | 18.1 | 121 |
| Kokapet | 19.3 | 41.7 | 14.5 |
| LB Nagar | 19.6 | 12.2 | 23.8 |
| Nallagandla | 7.6 | 163 | 6.7 |
| Manikonda | 3.3 | 98.5 | 3.7 |
3. Bangalore
Known as the “Silicon Valley of India,” Bangalore is home to a booming IT sector, top-notch educational institutions, and a multicultural environment. However, Bangalore’s charm goes beyond its strength in terms of culture and economy. Growing population, strong infrastructure development, and other factors have all contributed to the market’s extraordinary rise in recent years. Bangalore has a diverse demographics and skilled workforce which makes it an ideal place for people from across the city to invest here.
Bangalore has witnessed excellent economic growth and boom in the IT sector. This has contributed to the development and growth of various IT companies contributing to a wide range of employment opportunities. Bangalore’s real estate market has been greatly influenced by government initiatives. New investment centers are being created by infrastructure initiatives like the metro extension and enhanced accessibility to outlying areas.
Bangalore real estate market offers a wide range of residential options like apartments, independent houses, villas, and plots. Some of the top localities to invest in Bangalore are Sarjapur, Whitefield, Mysore Road, K R Puram, Hebbal, Electronic City, Devanahalli, Hoskote, Indiranagar and Yelahanka.
| Localities | Property Appreciation Value for Apartments in the Last Year (in %) | Property Appreciation Value for Villas in the Last Year (in %) | Property Appreciation Value for Plots in the Last Year (in %) |
| Sarjapur | 7.1 | 23.4 | 39.9 |
| Whitefield | 5.2 | 45 | 3.7 |
| Mysore Road | 13.1 | 28.2 | 8.7 |
| KR Puram | 71.8 | 18.6 | 41 |
| Hebbal | 15.4 | 17.3 | 17 |
| Electronic City | 7.5 | 7.6 | 2.8 |
| Devanahalli | 13.2 | 22.2 | 15.1 |
| Hoskote | 31.7 | 18.6 | 4.1 |
| Yelahanka | 3.3 | 28.4 | 20 |
| Indiranagar | 55.5 | 7.5 | 7.6 |
4. Coimbatore
Coimbatore is one of the fastest emerging cities in South India for real estate investments. This development is impacted by the growing IT sectors and manufacturing industries in this region. As as result of which, Coimbatore offers a wide range of job opportunities to individuals in all domains. In addition to this, the availability and accessibility of public and private transportation makes it easy for residents to commute without any hassle. Coimbatore is also known for its pleasant infrastructure with all the essential amenities.
Coimbatore’s economy also sets a strong foundation for real estate investment. The presence of various multinational companies in this region promotes high demand. Apart from this, the potential for future growth is also significant as with growth the demand tends to rise high. The presence of prominent healthcare facilities and world-class educational hubs also contribute to the growing residential demand.
This city offers a wide range of residential options from affordable apartments to luxury villas. Some of the best places in Coimbatore for investment are Avinashi Road, Ganapathy, Singanallur, Vadavalli, Saibaba Colony, Peelamedu, Kalapatti, Saravanampatti, Race Course, and Thudiyalur.
| Localities | Property Appreciation Value for Apartments in the Last Year (in %) | Property Appreciation Value for Villas in the Last Year (in %) | Property Appreciation Value for Plots in the Last Year (in %) |
| Avinashi Road | 29.2 | 24.2 | 1.32 |
| Ganapathy | 7.5 | 24.1 | 7.5 |
| Singanallur | 23 | 18.2 | 5.4 |
| Vadavalli | 14.1 | 7.6 | 11.2 |
| Saibaba Colony | 1.8 | 10.2 | 14.4 |
| Peelamedu | 3.6 | 11.3 | 2 |
| Kalapatti | 7.5 | 10.1 | 9.56 |
| Saravanampatti | 14.1 | 8.2 | 1.3 |
| Race Course | 9.3 | 9 | 8.3 |
| Thudiyalur | 16.5 | 12.2 | 38.5 |
Frequently Asked Questions
1. Which city in South India has the highest Returns on Investment (ROI)?
Some of the top cities in South India that has the highest Returns on Investment (ROI) are Bangalore, Hyderabad, and Chennai. The maximum ROI of these cities are 22%, 28% and 18% respectively for one year.
2. Which city offers better rental income and high rental yield in South India?
Some of the top cities in South India that offers better rental income and high rental yield are Chennai, Bangalore, and Coimbatore. The rental yield in Chennai is 5%, Hyderabad is 3.8% and Bangalore is 7%.
3. What are the real estate investment options available in the top cities in South India?
People looking for real estate investment options in South India can opt for high-rise apartments, plots, and luxury villas. Considering resale properties will also extend the scope for investment. Some of the top cities in South India ideal to make this investment are Chennai, Hyderabad, Bangalore, and Coimbatore.
4. Who are the top builders and real estate developers in South India?
Some of the top builders and real estate developers in India are Casagrand Private Limited, Shriram Properties, Puravankara, G Square Housing, and VGN Projects. These builders offer residential housing options catering to the needs of every individual incorporating all the essential amenities.
5. How do I invest in real estate in South India?
Finding the right option for investment at the right locality can be tiring. So, it is better to look for real estate investment options online. There are various online sites that can help you find the property you are looking for without any extra charges. RoofandFloor is one such website which presents you with the list of properties in your preferred location making your search easy.