Bhubaneswar Surges Ahead: India's New Real Estate Gem
Bhubaneswar: Once considered primarily as a temple city, Bhubaneswar is now making headlines as India's most promising real estate destination. According to recent market data, the Odisha capital has outpaced traditional heavyweights like Mumbai and Delhi in delivering long-term returns on property investments.
National Housing Bank's RESIDEX, India's first official housing price index (HPI), found that Bhubaneswar's residential market recorded an annual capital appreciation of 6% to 10%, coupled with rental yields averaging 2% to 3%. The performance places the city ahead of several tier-I metros, where appreciation slowed to 3% to 5% in recent years.
An assessment between September 2015 and September 2025 revealed that Bhubaneswar recorded the highest returns of 148.3% in the 10-year period, followed by Ahmedabad at 147.3%, Gandhinagar at 145.6%, Gurgaon at 131.2%, and Greater Noida at 125.2%, while Bengaluru remained below the 100% mark. Mumbai recorded 35-45% returns while Delhi recorded flat 10-15% returns in the 10-year period, primarily due to multiple years of stagnation and regulatory hiccups.
The five-year assessment period placed Bhubaneswar in third place with returns of 57.7%. In this period, Gurgaon and Greater Noida topped the table with 94.1% and 76.1%, respectively. A similar assessment in the three-year window finds Bhubaneswar to be a consistent performer.
According to real estate experts, smart city initiatives drove the realty growth with large-scale infrastructure upgrades, including city expansion and connectivity, which boosted investor confidence, while the growing IT parks and universities are fuelling demand for both housing and rentals. “Bhubaneswar is indeed an emerging tier-II city in the country. Real estate development in recent times is significant,” said Sangram Nayak, a city-based real estate developer. “Huge investment is being pumped in, which is evident from the rapid development of high-rises. Smart city and IT development are key factors of the growth.”
Real estate analyst Sameer Jena said that affordability is another reason people are eyeing properties in cities like Bhubaneswar. “Compared to sky-high prices in Mumbai or Delhi, Bhubaneswar offers accessible entry points for middle-class buyers and also first-time investors,” he said. Experts believe Bhubaneswar's steady growth reflects a broader trend of tier-II cities becoming investment destinations.
The announcement of the Capital Economic Regions (CER) in the Union Budget is likely to further enhance the image of Bhubaneswar as a favorite for real estate investment. Urban planners, however, cautioned that rising property prices could strain affordability for residents. “Balanced development will be key to ensure Bhubaneswar's growth benefits all sections of society. The current situation will only be beneficial for higher income groups,” urban planner Dipu Nanda said.
