Agra Outperforms Metros: Best Real Estate Returns in Tier 2 Cities
Investment banker Sarthak Ahuja reveals that Tier 2 cities, especially Agra, have outperformed metros in real estate returns, with Agra seeing a 94% rise in property prices.
Real EstateAgraInvestmentProperty PricesTier 2 CitiesReal Estate NewsJun 21, 2025
But now, in a recent video, investment banker Sarthak Ahuja pointed out that it is actually Tier 2 cities that have delivered the best real estate returns in the past four years. He highlighted the data from real estate analytics firm Prop Equity, which studied 30 Tier 2 cities and compared property launch prices in 2020 to their market prices in 2024.
The findings are truly eye-opening. Several non-metro cities have seen remarkable surges in property prices. Trivandrum reported a 54% increase, followed by Mangalore at 57% and Bhubaneswar at 58%. Ahmedabad recorded a 60% rise, while Dehradun climbed even higher at 68%. The Chandigarh-Mohali region saw a 70% jump, with Indore close behind at 72%. Ludhiana stood out with an impressive 89% growth, and Goa wasn’t far behind, posting a 90% increase.
Topping the list is Agra, which recorded a staggering 94% rise in property prices, the highest among all the cities studied.
Why Agra Is a Smart Choice for Real Estate Investment?
Tourism Boosts Demand
Agra sees around 8 to 10 million visitors every year, according to a blog by Omni Infra. The Taj Mahal alone draws huge crowds, and places like Agra Fort, Fatehpur Sikri, and Mehtab Bagh add to the city’s tourist appeal. This steady flow of visitors creates strong demand for hotels, guest houses, and short-term rentals. Platforms like Airbnb are doing well here with rental returns of 8 to 10 per cent in good locations. The government is also working to boost tourism through new projects like the Taj West End and improved heritage walks. All of this makes Agra a smart and growing market for real estate investors.
New Development
The Agra Metro has already started running on its first stretch, which connects key places like the Taj Mahal, Agra Fort, and residential areas. More parts of the metro will open by the end of 2025. The city is also part of two major industrial corridors, the Delhi-Mumbai and Delhi-Kolkata routes, which are boosting employment and housing demands. Better roads like the Yamuna Expressway now link Agra to Delhi in just 2.5 hours, and the upcoming Jewar International Airport, about 90 km away, will further boost connectivity.
Affordable Prices, Rising Value
According to Omni Infra, real estate in Agra is still affordable, with prices in areas like Taj Nagri and Sikandra starting at Rs 3,500–5,000 per sq. ft. This is much lower than rates in Delhi-NCR or Mumbai. As demand for modern flats, gated societies, and plots grows, prices are rising steadily. In fact, homes near Agra Metro stations have already seen a 15–20 per cent jump in the last two years.
Growth Beyond Tourism
With close proximity to the Yamuna Expressway and the planned Agra-Lucknow Expressway Extension, Agra is becoming an important growth area. New projects like IT parks and the Agra IT City are bringing in new types of jobs. Over the next 10 years, more than 50,000 jobs are expected to be created.
Heritage Areas Offer Great Returns
Agra’s old and well-known areas near monuments are good for long-term investment. Because the Archaeological Survey of India (ASI) limits new construction near heritage sites, these places stay exclusive and in demand. Spots like Civil Lines and Sadar Bazaar, known for their old charm, have given steady price growth of 6–8 per cent every year, which is better than many big cities.
Government Support
According to Omni Agra, the Uttar Pradesh government is giving subsidies for affordable housing and tax rebates for heritage-related projects. Agra is also part of the Smart City Mission, which is improving sanitation, using more solar power, and adding digital services.
Frequently Asked Questions
What cities have seen the highest real estate returns?
Agra has seen the highest real estate returns with a 94% increase in property prices, followed by Goa with a 90% increase, and Ludhiana with an 89% increase.
Why is Agra a good choice for real estate investment?
Agra is a good choice for real estate investment due to its booming tourism industry, new developments like the Agra Metro, affordable property prices, and government support for heritage and smart city projects.
What are the key factors driving property price increases in Agra?
Key factors include the city's tourism appeal, new infrastructure projects, proximity to major industrial corridors, and affordable property prices that are rising steadily.
How is the government supporting real estate development in Agra?
The government is providing subsidies for affordable housing, tax rebates for heritage-related projects, and is part of the Smart City Mission to improve infrastructure and services.
What are the expected job growth projections for Agra?
Over the next 10 years, more than 50,000 jobs are expected to be created in Agra due to new projects like IT parks and the Agra IT City.
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