The New Order of Indian Real Estate

A Comparative Analysis of Metros, Market Shifts, and Future Horizons

The landscape of Indian real estate is undergoing a seismic shift. No longer dominated solely by the traditional powerhouses of Mumbai and Delhi, the sector is witnessing the meteoric rise of Hyderabad and a fundamental transformation in buyer psychology of going global.

In a recent panel discussion titled "ASBL Beyond on four walls," hosted by Ajitesh Korupolu (CEO, ASBL) in Hyderabad, three of India’s prominent real estate influencers: Ravi Kewalramani, Mayank Agarwal, and Deepthi Malik gathered to dissect the current state and future trajectory of the industry.

The conversation offered a rare, candid look into the varying "personalities" of India’s metros, the surprising data behind market movements, and the technological disruptions reshaping how Indians buy homes.

Mumbai vs Delhi vs Hyderabad: How Infrastructure Shapes Real Estate Markets

The panellists began by personifying India’s major real estate markets, offering a "dating profile" for each city that reveals its underlying structural reality.

Mumbai: Mayank Agarwal described Mumbai’s real estate market with the bio: "Love is blind." This encapsulates the sentiment of Mumbaikars who are enamoured with the city’s vibe despite its "fundamentals being all wrong" regarding infrastructure. Mumbai is defined by compromise; buyers pay premium prices yet often struggle to find exactly what they want, leading to a market where "everyone has to compromise". However, the city is resilient. Historically developed by reclaiming seven islands, Mumbai is now looking toward "Mumbai 3.0," driven by massive infrastructure projects like the Atal Setu sea link, which is opening up new greenfield opportunities in areas like Panvel.

Delhi-NCR: Deepthi Malik characterised Delhi as a blend of "old world charm meets new age". The region offers a stark duality: the architectural heritage and low-density luxury of Lutyens' Delhi versus the rapid vertical growth and modern amenities of Gurgaon. It is a market of contrasts, where infrastructure in areas like Gurgaon has historically lagged behind development, though it is now catching up.

Hyderabad: The consensus on Hyderabad was unanimous: it is the "Rising Star". Unlike Mumbai, where development happened haphazardly before infrastructure, Hyderabad is praised for an "infrastructure first" approach. The panellists noted the wide roads, the lack of potholes (a stark contrast to Mumbai), and the seamless integration of residential and commercial zones. It is viewed as a "greenfield" success story where planning preceded the high-rises, making it a model for future urban development in India.

Sales Volume and Luxury Housing Trends

One of the most revealing segments of the discussion was the breakdown of market data, which challenged conventional wisdom about India's real estate hierarchy.

The Volume Leaders Mayank Agarwal revealed that contrary to popular belief, neither Mumbai nor Delhi leads the country in the number of primary homes sold. That title belongs to Pune, which sold approximately 90,000 homes in the last year, driven by affordability (averaging ₹80 lakhs). However, the shock came at number two: Hyderabad, with 65,000 primary homes sold, surpassing the traditional giants.

The Luxury Pecking Order In the luxury segment (homes priced above ₹10 crores), the Mumbai Metropolitan Region (MMR) remains the undisputed king, clocking roughly ₹20,000 crores in sales volume last year. Delhi-NCR followed closely. However, Hyderabad again surprised the panel by securing the third spot with ₹10,000 crores in luxury sales—five times more than Bangalore, Kolkata, and Pune combined. This data signals a massive accumulation of wealth in Hyderabad and a shift in high-net-worth investment toward the city.

Future Of Indian Real Estate

When asked to predict the look of Indian real estate in two to three decades, the panel offered a vision of vertical cities, satellite townships, and entirely new economic zones.

Vertical Growth and Satellite Townships: Ravi Kewalramani argued that the future lies in integrated townships built on large land parcels (300-500 acres). These will not be haphazard developments but planned ecosystems containing high-rises, villas, commercial zones, schools, and emergency services within a single perimeter. Mayank added that Mumbai, surrounded by water, has "no place to go but up," predicting the rise of 100-storey buildings supported by increased FSI (Floor Space Index) and new infrastructure.

The Great Nicobar Ambition: A fascinating insight shared by Ajitesh and Ravi was the potential of the Great Nicobar Islands. They predicted this region could become "India’s version of Singapore" over the next generation. The government is reportedly keen on developing it for both military and commercial purposes, and developers from South India are already exploring opportunities there. It is tipped to be a major hotspot to watch for long-term investors.

Sustainability and Tech-Driven Living: Deepthi Malik emphasized that the future is hybrid. Tier 1 cities will see vertical growth due to land scarcity, while Tier 2 cities will see sustainable, spread-out community living. She noted that India already ranks third globally in LEED-certified sustainability projects, indicating a strong shift toward green building practices.

Changing Buyer Psychology in India

The demographics of home buyers are shifting, leading to new demands and behaviours that developers must address.

The "Compromise" vs. "Value" Equation In Mumbai, the market reality is harsh:

"The only way to reduce the price of a home is to reduce its size". Buyers in the luxury segment are discerning about "sea view" versus "sea touch," with the latter commanding massive premiums. In contrast, Hyderabad offers a value proposition where buyers do not have to compromise. For the price of a compact apartment in Mumbai, one can afford a lavish bungalow or a large apartment in a high-end gated community in Hyderabad.

Gen Z and Investment Logic Younger buyers are less emotional and more data-driven:

Unlike previous generations who bought homes to pass down to children, millennials and Gen Z are looking for capital appreciation and rental yield. Deepthi noted that while rental yields in Delhi might hover around 2-3%, Hyderabad offers superior yields of 5-6%, attracting a nomadic workforce that values return on investment over permanence.

Taken together, these shifts point to a larger change in Indian real estate thinking. The market is no longer monolithic, where a single city or a single type of property defines success. As buyers become more data-driven, many are beginning to think beyond a single city and in some cases beyond a single country, when structuring long-term portfolios. This growing emphasis on diversification, income visibility, and risk management is reshaping how modern investors approach real estate ownership.

Mistakes, Scams, and Due Diligence

The discussion provided a practical guide on what not to do when navigating the property market.

The Cash Trap Ajitesh highlighted a critical red flag: deals that seem "too good to be true" usually involve a heavy cash component. He warned that cash paid in under-construction projects often "goes out of the project" and isn't used for construction, significantly increasing the risk that the project will stall or fail.

The Importance of RERA Ravi stressed that the Real Estate Regulatory Authority (RERA) has democratized information, yet 99.9% of buyers fail to use it effectively. He urged buyers to check the RERA website for a developer’s litigation history, approvals, and financial stability before committing.

Avoiding the "Wrong" Configuration A tactical piece of advice for investors was to avoid buildings with a mismatched mix of unit types (e.g., 1 BHKs mixed with 4 BHKs). Ravi argued that such buildings are rarely maintained well because the residents have vastly different economic capabilities and priorities.

The Density Debate: FSI and Traffic

A contentious topic in Indian urban planning is the relationship between high density (Unlimited FSI) and traffic congestion. Hyderabad has embraced unlimited FSI, leading to soaring skyscrapers. When questioned if this causes traffic, Ajitesh argued that traffic and FSI are not directly correlated.

Using Singapore and US suburbs as examples, he explained that traffic is a result of poor "last-mile walkability," not density. High-density areas in Bangalore or Hyderabad suffer from congestion because people are forced to drive even for short distances due to a lack of footpaths. He posited that vertical growth, when paired with walkable infrastructure, actually reduces the strain on transit systems by localizing consumption and work.

The Role of Technology

The "ASBL Beyond" panel painted a picture of an India that is rapidly urbanising but at different speeds and with different philosophies. As the Indian real estate market matures, the winners will be those, whether developers, brokers, or buyers, who embrace data over emotion, prioritize infrastructure and sustainability, and understand that in a country of 1.4 billion, the future belongs to those who build up and smart, not just out.

Platforms like Raveum are emerging to support this shift, making it possible to participate in professionally structured, income-generating real estate beyond local markets, without the traditional barriers of scale or geography. The future of real estate investing will belong to those who understand cities, cycles, and capital allocation.

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FAQ’s

1. Which are the best cities to invest in Indian real estate in 2024 for high rental yield?

Rental yields vary significantly by city and asset type. Based on recent market data discussed in the panel, Hyderabad stands out with rental yields in the 5–6% range, driven by strong job growth, infrastructure-first planning, and demand from a mobile workforce. In contrast, Delhi-NCR typically offers lower rental yields of around 2–3%, though it remains strong for capital appreciation in select micro-markets. Pune has emerged as a volume leader in primary home sales, supported by affordability and steady end-user demand. Investors should evaluate yield, price entry points, and long-term demand rather than relying solely on city reputation.

2. How can investors check a builder’s RERA details and litigation history online?

Buyers can verify a developer’s credentials through their respective state RERA websites. These portals provide access to project registration status, approvals, timelines, litigation history, and past project performance. Reviewing this information is especially important for under-construction properties, as it helps identify red flags such as stalled projects, repeated delays, or legal disputes. Despite its availability, RERA data remains underutilized, and checking it should be a non-negotiable step before committing capital.

3. How are Indian investors using platforms like Raveum to diversify beyond domestic real estate?

As Indian real estate becomes more segmented by city, yield, and risk, many investors are beginning to think in portfolio terms rather than single-property decisions. Platforms like Raveum allow investors to participate in professionally structured, income-generating U.S. real estate through fractional ownership. This enables diversification beyond local markets, access to dollar-denominated income, and exposure to a different regulatory and demand environment, without the need for large capital outlays or direct property management. For investors already active in Indian real estate, such platforms are increasingly viewed as a complement rather than a replacement.

4. What is the impact of unlimited FSI on Hyderabad’s traffic and property prices?

Unlimited FSI does not automatically lead to traffic congestion. As discussed in the panel, congestion is more closely linked to poor walkability and last-mile infrastructure than to density itself. Cities like Hyderabad have embraced vertical growth, but challenges arise when high-rise development is not paired with pedestrian-friendly planning. When infrastructure, zoning, and mixed-use development are aligned, higher density can actually reduce travel distances and localize consumption, supporting both livability and long-term property values.

5. What is the real estate investment potential of the Great Nicobar Islands?

The Great Nicobar Islands are viewed as a long-term, speculative opportunity rather than an immediate investment destination. Panelists suggested the region could evolve into a strategic commercial and logistics hub over the next 20–30 years, driven by government interest in infrastructure, defense, and trade. Early developer activity is reportedly underway, particularly from South Indian firms. However, investors should approach the region with caution, focusing on policy clarity, environmental regulations, and long-term development timelines rather than short-term gains.

6. What checklist should buyers follow when purchasing under-construction property in India?

Investors should follow a disciplined checklist when evaluating under-construction properties:

• Avoid deals involving large cash components, as funds may not be deployed into the project.
• Verify project approvals, timelines, and litigation history through RERA.
• Assess the configuration mix, projects combining vastly different unit sizes (e.g., 1 BHKs and 4 BHKs) often face maintenance and community challenges.
• Understand carpet area versus super built-up area to avoid pricing confusion.
• Evaluate the developer’s track record across completed projects.

This due diligence significantly reduces the risk of delays, cost overruns, and poor long-term outcomes.

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Source & Credits

This article draws insights from the panel discussion “ASBL Beyond on Four Walls”, hosted by Ajitesh Korupolu (CEO, ASBL), featuring Ravi Kewalramani, Mayank Agarwal, and Deepthi Malik.

Watch the full discussion here