For years, real estate discussions in India have revolved around the same names. Delhi and Mumbai have always been seen as the safest and most rewarding markets for property investment. High demand, strong job markets and long histories of price growth made them the obvious choices. But recent data shows that the picture is slowly changing. The best real estate investment returns are no longer limited to these two cities.
A recent long term analysis of property prices across Indian cities shows that Bhubaneswar has delivered higher returns than many established markets. Over the last decade, this city recorded stronger price appreciation than Delhi and Mumbai, catching the attention of investors who usually focus only on large metros.
Understanding the price growth
Over a ten year period, property prices in Bhubaneswar have increased by more than 140 percent. In comparison, price growth in Delhi and Mumbai has been far more moderate. While both metros have seen stability, their high starting prices have limited how much further values could rise, especially when compared to cities now delivering the best real estate investment returns.
This is a common pattern in real estate. Cities that grow early and grow fast often reach a stage where prices become expensive relative to incomes. Once that happens, returns tend to slow down. On the other hand, cities that start from a lower base can see sharper growth once development and demand catch up.
That is exactly what has played out here.
Affordability played a big role
One of the biggest advantages Bhubaneswar had was affordability. Ten years ago, property prices were low enough for a wide range of buyers to enter the market. First time homebuyers, local professionals and small investors were actually able to afford homes here. That brought a lot of real demand into the market. As more people started buying, prices went up but not in sudden jumps. That slow, steady rise is usually a good sign.
It gives the market time to adjust and avoids the kind of spikes that often don’t last. Buyers who came in early still saw gains, just without the extreme ups and downs. Even now, prices in this city are still lower than in Delhi or Mumbai. Because of that, demand hasn’t dried up and the market hasn’t seen long periods where nothing moves.
Infrastructure made a difference
Another important factor behind the strong returns is infrastructure development. Over the last decade, Bhubaneswar has seen improvements in roads, public transport, planned residential areas and basic urban facilities. Government backed development programs and better city planning have improved overall livability.
Better connectivity and organised growth make certain locations more desirable, which eventually reflects in property prices.
People are also more willing to buy homes when a city feels planned and manageable, rather than overcrowded and chaotic.
Job growth and local demand
While Bhubaneswar may not compete with major IT hubs in terms of scale, it has seen steady job growth in sectors like education, services, administration and small businesses. This has created a stable base of end users who want to live close to work.
This kind of demand is important. Markets driven only by investors can struggle during slowdowns. Markets supported by real residents tend to remain more stable, both for prices and rentals.
As more people chose to stay and work in the city instead of migrating to metros, housing demand naturally increased.
Rental income remained consistent
Investment returns are not only about resale value. Rental income is equally important. In this city, rental yields have remained relatively balanced. Rents have grown alongside prices, which is not always the case in large metros.
In Delhi and Mumbai, many investors face low rental yields because property prices are extremely high. Even decent rents often do not justify the purchase cost. In smaller cities, the gap between price and rent is usually narrower, which helps overall returns.
What this means for investors
The bigger lesson here is not about picking one city over another. It is about understanding where different cities stand in their growth cycle. Metro markets offer stability but their high prices limit future upside. Emerging cities offer more room for growth, especially for long term investors.
Investors who looked beyond familiar names a decade ago benefited from lower entry prices and steady appreciation. Those opportunities still exist but they require patience and careful selection.
Risks to keep in mind
Smaller cities also come with risks. Liquidity can be slower, resale may take time and demand can vary by location. Not every project or area will perform well. That is why due diligence is essential.
Investors should focus on well connected locations, proven developers and areas with visible development rather than future promises.
A change across the market
What this data really shows is a broader shift in India’s real estate market. Growth is spreading beyond a few large cities. As infrastructure and economic activity become more evenly distributed, pockets offering the best real estate investment returns are emerging outside traditional metro markets.
Delhi and Mumbai will remain important markets. But when it comes to long term returns, the strongest performance over the last decade has come from outside these traditional hubs. For investors willing to look beyond the obvious choices, the opportunity set is clearly wider than before.