This city beat Delhi-NCR, Mumbai, Bengaluru with 25% profit in property investment: Report

The report notes that regulatory reforms such as RERA and GST have improved transparency and reduced fraud risk, making the Indian real estate market more investor-friendly. (Representational image: Unsplash)

Kolkata has emerged as India’s most profitable city for property investment, delivering capital gains of up to 25 percent, Prop-Equity reported. The sharp rise in property prices is attributed to accelerated infrastructure development, including metro extensions, new highways, and the expansion of IT hubs, which have significantly boosted demand.

The report places Kolkata ahead of traditional investment hubs like Delhi-NCR, Mumbai, and Bengaluru. While Delhi-NCR continues to offer a stable 4 percent annual rental yield—particularly in areas like Gurgaon and Noida—Kolkata’s appreciation potential makes it the top choice for investors seeking high returns. “In Delhi-NCR, rental income from flats covers at least 4 percent of the investment,” the report stated, adding that such cities also offer higher liquidity, allowing quicker resale of properties.

The report, however, cautioned that Kolkata’s high-return profile comes with increased risk and lower liquidity. Investors may need to wait longer to realise gains, and market fluctuations can impact short-term profitability. Even in Delhi-NCR, certain pockets recorded 15–20 percent growth, but Kolkata led the rankings for overall capital appreciation.

Prop-Equity advises investors to align their choices with financial goals—opting for Delhi-NCR for regular income or Kolkata for long-term capital gains. Cities like Pune and Hyderabad were also highlighted for offering mixed returns, balancing rental yield with moderate appreciation.

The report noted that regulatory reforms such as RERA and GST have improved transparency and reduced fraud risk, making the Indian real estate market more investor-friendly. With the sector poised for growth in 2025, informed decision-making remains key, it added.

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