Top 10 Non-Metro Cities for Real Estate Investment in India 2025

As 2025 unfolds, the Indian real estate market is witnessing a significant shift towards non-metro cities. These Tier-2 and emerging hubs are outperforming metros with higher ROI, affordability, and growth potential. This article highlights the top 10 cities that are ideal for real estate investments, offering average returns of 8-12% and property prices ranging from ₹3,000-₹8,000 per sq ft.

Real EstateNonmetro CitiesInvestmentRoiInfrastructureReal EstateSep 11, 2025

Top 10 Non-Metro Cities for Real Estate Investment in India 2025

Real Estate:By relying on 2025 reports, it points out that these cities are offering average ROIs of 8-12% and prices ranging from ₹3,000-₹8,000/sq ft, which makes them appealing to value-seeking investors. The article also outlines several aspects of investing, related to why and how to invest, with three major destinations including Chandigarh, Coimbatore, and Jaipur.

Beyond the Big Cities: Why Non-Metros Are the Smart Bet

Are you fed up with super high prices in cities like Mumbai and Bangalore? In 2025, the real estate scene of India is turning towards non-metro cities where affordability is paralleled with opportunity. As the industry is expected to generate a revenue of ₹7.5 lakh crore by the end of the year, Tier-2 cities have attracted the attention of investors due to government initiatives like Smart Cities and expressways. Such areas provide 8-12% annual returns, require less initial investment (₹3,000-₹8,000/sq ft), and are witnessing growing demand from the IT, manufacturing, and tourism sectors. Moreover, the suburban appeal is being further uplifted by hybrid working models. The top 10 non-metro jewels could be the next hottest rental, flipping, or holding spot for you, so let’s take a look at them.

1. Chandigarh: Planned Perfection

The lovechild of sustainable living with its immaculate green plans and quite a stone's throw away from Delhi is this union territory. The birth of IT parks and education hubs is imminent with New Chandigarh expansion bringing integrated townships on the scene. ROI: 9-11% via rentals. Infrastructure: Metro extensions and airport upgrades. Affordability: ₹4,500-7,000/sq ft; with 2025 appreciation up 15% on connectivity.

2. Coimbatore: Industrial Powerhouse

Coimbatore is the “Manchester of South India” and is the perfect place for the booming of textiles, the automotive industry, and IT. The construction taking place for Coimbatore Metro and the Avinashi Road flyover will facilitate the area development. ROI: 10%+ returns from commercial properties. Affordability: ₹3,500-6,500/sq ft; 20% appreciation is expected to come from industrial parks like TIDEL.

3. Indore: Clean and Connected

The commercial capital of Madhya Pradesh has been given the cleanest city title and its pharma/IT sectors are flourishing. The establishment of Indore Metro and BRTS is raising the attractiveness of the city. ROI: 8-10% from rentals. Affordability: ₹3,200-5,800/sq ft; the price of properties has risen by 18% in 2025 due to Super Corridor developments.

4. Jaipur: Pink City with Golden Opportunities

The capital of Rajasthan was merely the city of palaces and the royal family but now, with the mixture of tourism, the IT sector, and manufacturing, it has become a triad that is hard to beat (for instance, Bosch and Hero). Jaipur Metro Phase 2 and Delhi-Jaipur Expressway are the factors driving up housing demand in this city. ROI: 9% from vacation homes. Affordability: Areas such as Jagatpura offer ₹3,500-6,000/sq ft; the price of houses in RERA-approved projects is increasing by 15-20%.

5. Lucknow: Cultural Hub Turning Modern

The growth of IT and biotech in the capital of Uttar Pradesh can be easily understood by the installation of the Lucknow Metro and Outer Ring Road, which is helping people to move easily. ROI: 8-12% on apartments. Affordability: ₹3,800-6,200/sq ft; 17% of the appreciation is due to the ongoing infrastructure projects and increased demand from the IT and biotech sectors.

6. Kochi: Gateway to the Backwaters

Kochi, known for its beautiful backwaters and vibrant culture, is emerging as a major real estate hub. The city is witnessing significant growth in the IT and tourism sectors, thanks to the Cochin Special Economic Zone (CSEZ) and the expansion of the Cochin International Airport. ROI: 8-10% from commercial and residential properties. Affordability: ₹3,500-6,500/sq ft; property prices are expected to rise by 15% in 2025 due to improved connectivity and infrastructure.

7. Ahmedabad: Textile and IT Hub

Ahmedabad, the largest city in Gujarat, is a major textile and IT hub. The city is experiencing rapid urbanization, with the Ahmedabad Metro and the expansion of the Ahmedabad International Airport. ROI: 9-11% from residential and commercial properties. Affordability: ₹3,800-7,000/sq ft; property prices have increased by 18% in 2025 due to the city's strong economic growth and infrastructure development.

8. Bhubaneswar: Smart City on the Rise

Bhubaneswar, the capital of Odisha, is one of the fastest-growing cities in India. The city is a part of the Smart Cities Mission and is witnessing significant infrastructure upgrades, including the Bhubaneswar Smart City Limited (BSCL) project. ROI: 8-10% from residential and commercial properties. Affordability: ₹3,500-6,000/sq ft; property prices are expected to rise by 15% in 2025 due to the city's improved infrastructure and economic growth.

9. Surat: Diamond and Textile Capital

Surat, known as the diamond and textile capital of India, is a major industrial hub. The city is experiencing rapid growth in the real estate sector, driven by the expansion of the Surat Diamond and Textile Park (SDTP) and the Surat Smart City project. ROI: 9-11% from commercial properties. Affordability: ₹4,000-7,000/sq ft; property prices have increased by 20% in 2025 due to the city's strong industrial base and infrastructure development.

10. Vijayawada: Gateway to Andhra Pradesh

Vijayawada, the commercial capital of Andhra Pradesh, is a major real estate hub. The city is witnessing significant growth in the IT and manufacturing sectors, thanks to the establishment of the Andhra Pradesh Capital Region (APCR) and the expansion of the Vijayawada Airport. ROI: 8-10% from residential and commercial properties. Affordability: ₹3,500-6,500/sq ft; property prices are expected to rise by 15% in 2025 due to the city's improved infrastructure and economic growth.

Frequently Asked Questions

What are the top 10 non-metro cities for real estate investment in 2025?

The top 10 non-metro cities for real estate investment in 2025 are Chandigarh, Coimbatore, Indore, Jaipur, Lucknow, Kochi, Ahmedabad, Bhubaneswar, Surat, and Vijayawada.

What is the average ROI for real estate investments in these cities?

The average ROI for real estate investments in these non-metro cities ranges from 8-12%.

Why are non-metro cities outperforming metros in real estate investments?

Non-metro cities are outperforming metros due to higher ROI, affordability, and growth potential. They offer property prices ranging from ₹3,000-₹8,000 per sq ft and are witnessing growing demand from the IT, manufacturing, and tourism sectors.

What are the key factors driving real estate growth in these cities?

The key factors driving real estate growth in these cities include government initiatives like Smart Cities and expressways, the establishment of IT parks and industrial hubs, and the improvement of infrastructure such as metro systems and expressways.