Looking for property investment? This city offers better profit than Delhi-NCR, Mumbai, Bengaluru

New Delhi: If you are looking for investments in property, then Kolkata is the most profitable city in India, as per a report by Prop-Equity.

According to the report, Kolkata delivers capital gains of up to 25 per cent, making it the most profitable among all Indian cities when it comes to property investment. Several factors have been attributed to the sharp rise in property prices, including infrastructure development, which has witnessed metro extensions, new highways, and the expansion of IT hubs.

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The Prop-Equity report places Kolkata ahead of traditional investment hubs like Mumbai, Delhi-NCR, and Bengaluru. Delhi-NCR, especially in places like Gurgaon and Noida, still offers a stable 4 per cent annual rental yield. However, Kolkata’s appreciation potential has made it the foremost choice for investors who are looking for high returns. The report said, “In Delhi-NCR, rental income from flats covers at least 4 percent of the investment." It also said that such cities allow quicker resale of properties.

However, Kolkata's profile of being a place with high returns in property investment also has increased risk and lower liquidity. Investors looking to realise gains may have to wait longer, and the short-term profitability can be impacted by market fluctuations. While certain places in Delhi-NCR recorded 15 to 20 per cent growth, Kolkata leads by dint of its overall capital appreciation.

As per Prop-Equity, those looking for regular income can opt for Delhi-NCR, while investors seeking long-term capital gains can opt for Kolkata. The report also highlighted cities like Pune and Hyderabad for offering mixed returns. Also, it noted that regulatory reforms like RERA and GST have made the real estate market of the country more investor-friendly, and the sector is expected to grow in 2025.