Hyderabad, Bengaluru, or Pune: Which City Offers the Best Real Estate ROI in 2025?
With their impressive ROI drivers, Hyderabad, Bengaluru, and Pune are leading the Indian real estate market in 2025. Let's explore the year-on-year price growth, commercial property outlook, infrastructure development, and affordability of these cities to determine which one stands out.
Real EstateRoiHyderabadBengaluruPuneReal Estate NewsAug 02, 2025
Real estate investors looking for strong returns in India are now considering Hyderabad, Bengaluru, and Pune – three cities that are making news with their real estate booms. But is the real estate market of Hyderabad truly providing a higher ROI than its competitors? Let’s look into year-on-year price growth, commercial property outlook, infrastructure development, and affordability to understand more.
The Latest Data Present a Compelling Scenario:
Hyderabad: Between 2019 and mid-2024, the city’s residential property rates rose by a staggering 64%, while micromarkets like Kokapet saw an 89% spike in rates over the same period. Due to the continued demand for IT and ITeS, prime Hyderabad corridors like Gachibowli and HITEC City are anticipated to continue to see robust growth in 2024. The price appreciation continues to stay in the 7%-10% range per annum for the best-performing micro-markets up to 2025.
Bengaluru: India’s tech hub logged a 57% increase in citywide residential values, and areas like Bagaluru and Whitefield experienced prices rising by 80%-90% since 2019. In 2025, annual growth in East and technology-driven locations is approximately 8%. Bangalore’s steady appreciation is closely linked to the expansion of IT and thriving startups.
Pune: The realty market in the city is higher when compared to its Southern neighbours. Home prices increased by 15% during 2025 – higher than the pan-India average – led by IT routes like Hinjewadi, Baner, and Kharadi. New townships and enhanced connectivity are stimulating ROI opportunities in core and peripheral areas.
Commercial Real Estate
All three cities are high on commercial property rankings. India’s office capital is Bengaluru, whereas the main locations for IT and ITeS campuses, Grade-A offices, and co-working spaces are Hyderabad and Pune. Due to high occupancy and demand from MNC tenants, commercial rents and capital values have increased steadily in Hyderabad’s Financial District and Gachibowli.
Infrastructure Growth
Hyderabad
The H-CITI programme will see 38 large projects valued at Rs. 7,032 crores in 2025, such as flyovers, grade separators, tunnel corridors, and drainage improvements. The Strategic Road Development Programme (SRDP) continues to enhance access to tech corridors and suburbs.
Urbanization through rapid metro rail expansion, new underpasses, and large-scale urban planning is revolutionizing travel and demand for property.
IT development by international companies like Amazon, Google, and Microsoft has propelled more localized residential and commercial demand.
Bengaluru
Phases 2, 3, and 4 of the Namma Metro expansion, suburban rail, Peripheral Ring Road (PRR), and Satellite Town Ring Road will curb traffic, bring out new localities, and expand accessibility for homes and offices as well.
The civic body of the city (BBMP) will spend Rs. 12,952 crores on infrastructure in the 2025-26 budget, with a concentration on congestion relief and enhanced connectivity.
Nevertheless, traffic jams and project setbacks are still pain-points – tempering some investor hopes for rapid appreciation.
Pune
By the end of 2025, Pune Metro’s Hinjewadi–Shivajinagar line will connect residential neighborhoods and IT parks.
The 170-km Pune Ring Road and forthcoming Purandar International Airport will unlock new growth lines and facilitate long-term commercial growth.
Integrated townships are popular, with walk-to-work and lifestyle facilities much sought after by new-generation purchasers.
On Affordability:
Hyderabad’s average residential price of Rs. 7,412/sq ft, is marginally behind that of Bengaluru’s Rs. 7,881/sq ft (as of mid-2025).
Pune continues to be more affordable than the two, with something available for entry-level, mid-segment, and luxury buyers, especially in new growth corridors.
Rental yield in Hyderabad is at 4.2% for 2025, though higher in certain IT-satellite micro-markets. Bengaluru and Pune rental yields are also robust, particularly where rental demand and capital appreciation are coupled close to employment hubs.
Key Highlights
Hyderabad now boasts the highest five-year price appreciation among India’s tier-1 Real Estate markets. Its accelerated infrastructure deployment, persistently strong demand fuelled by tech-driven migration, and government incentives have forged an enviable combination of affordability and appreciation.
Bengaluru continues to be a blue-chip bet for long-term stability on the strength of its IT industry depth, huge inventory of homebuyers, and continuing infrastructure megaprojects. But price appreciation is slowing, and entry prices are higher in prime micro-markets.
Pune is the “value pick” here with reasonable, fast-appreciating, and backed by stunning infrastructure and township growth. Its robust IT and education foundation guarantees sustained rental demand and investor faith.
For optimal ROI in 2025, Hyderabad takes a fraction of an edge – especially along strategic tech hubs and newbie localities. But Pune and Bengaluru are stiff competitors based on individual investment objectives, risk profile, and desired asset class- residential as well as commercial.
Frequently Asked Questions
Which city has the highest five-year price appreciation in real estate?
Hyderabad has the highest five-year price appreciation in real estate, with a staggering 64% increase between 2019 and mid-2024.
What factors contribute to Bengaluru's steady real estate appreciation?
Bengaluru's steady real estate appreciation is closely linked to the expansion of its IT industry, strong demand from homebuyers, and ongoing infrastructure megaprojects.
Why is Pune considered the 'value pick' in the real estate market?
Pune is considered the 'value pick' in the real estate market due to its reasonable prices, fast-appreciating property values, and robust infrastructure and township growth.
What are the key infrastructure projects in Hyderabad that are boosting real estate value?
Key infrastructure projects in Hyderabad include the H-CITI programme, the Strategic Road Development Programme (SRDP), rapid metro rail expansion, and IT development by international companies like Amazon, Google, and Microsoft.
How does the commercial real estate market compare in Hyderabad, Bengaluru, and Pune?
All three cities are high on commercial property rankings. Hyderabad and Pune are particularly strong in IT and ITeS campuses, while Bengaluru is India’s office capital with high occupancy and demand from MNC tenants.
Related News Articles
The Future of Living: How Technology is Revolutionizing Real Estate and Modern Homes
Explore the cutting-edge technologies transforming the real estate industry and redefining the concept of modern homes.
New CEO Appointment: Piramal Realty Welcomes Abhijeet Maheshwari to the Helm
Piramal Realty, the real estate division of Piramal Group, has announced the appointment of Abhijeet Maheshwari as its new CEO.
India's Office Space Goes Green: 65% of Offices Now Certified
The Indian government's push for net zero emissions by 2070 is driving the adoption of green certified offices in the country, with a significant 65% of office space now holding green certifications.
Godrej Properties Sees 3% Increase in Sale Bookings to Rs 5200 Crore in Q2 FY25
Godrej Properties, a leading real estate developer in India, has reported a 3% increase in sale bookings to Rs 5200 crore in Q2 FY25, driven by strong demand for housing in Delhi-NCR and other key markets.
Signature Global Dominates Asia Property Awards with Impressive Wins
Signature Global, a leading affordable housing developer, has made a significant leap into the premium market, clinching several prestigious awards at the Asia Property Awards. Supported by key investors such as Nomura and HDFC, the company is set to rede
Why Coastal Property Investment in Andhra Pradesh is a Smart Move Today
Real estate investors often face low returns on investment when dealing with large properties. However, the coastal areas of Andhra Pradesh, especially Visakhapatnam, offer a high ROI due to booming demand and strategic development.