By News18,Satyaki Baidya

Copyright news18

Investing in property can be a significant financial decision, and choosing the right city is crucial to avoid potential losses. A recent report by Prop-Equity provides clarity for property investors, outlining the Indian cities that are wise investments.
Whether seeking a stable 4% return from rent with minimal risk or a substantial 25% profit from property appreciation, the report offers valuable insights.
Which City Promises Stable Returns?
For those looking for stable returns, Delhi-NCR emerges as a prime option. The report indicates that buying and renting property in this region can yield a 4% annual rental yield. Areas like Gurgaon and Noida are particularly noteworthy, as the rental income from flats covers at least 4% of the investment.
This option is especially suitable for retired individuals or families aiming to preserve their capital long-term. Additionally, property values in such cities gradually increase, providing an added bonus.
These Cities Promise 25% Profit
On the other hand, investors seeking significant profits should consider emerging cities like Kolkata. The Prop-Equity report highlights that property prices in Kolkata have risen sharply in recent years, offering returns of up to 25%.
This surge is attributed to accelerated infrastructure development, including metro projects, new highways, and IT hubs, driving demand. However, this high-return option comes with higher risk and market fluctuations, requiring patience. Even in Delhi-NCR, certain areas recorded 15–20% short-term growth, but the report placed Kolkata at the top for delivering the highest returns.
The report also compares cities based on liquidity. Cities with stable returns, like Delhi-NCR, have higher liquidity, meaning properties sell quickly. Conversely, cities offering high profits may require a longer wait to realise gains.
Prop-Equity advises investors to focus on their goals, opting for Delhi-NCR for regular income or Kolkata for capital gains. Additionally, cities like Pune and Hyderabad present opportunities for mixed returns.
Overall, the Indian real estate market is poised for growth in 2025, but making informed choices is essential. Regulatory changes like GST and RERA have increased transparency, reducing the risk of fraud.