The more advanced cities of western and southern India have benefited most from the opening up of the economy over the past decade, and they are expected to continue to be the most dynamic of the coming decade.
These states contain India’s wealthgenerating commercial hubs, its best quality labour pools and infrastructure, and are the most successful in attracting FDI, due to their more open business-friendly environments.
In contrast, large areas of northern and eastern India remain economically backward, including the two highly populous Ganges Basin states of Uttar Pradesh and Bihar (which alone contain one-quarter of India’s population).
Tier I CitiesThe first choice for new market entrants
Mumbai the commercial hubDelhi the political capitalBangalore the technology hub
Have been the pioneers of Indian real estate growth since the late 1990s. These three cities command by far the highest international profiles and have attracted a significant proportion of FDI; they provide the largest and most qualified labour pools, the best infrastructure and have developed the most advanced real estate formats.
Bangalore remains at the forefront of the global IT outsourcing trends. Delhi and Mumbai, as India’s two largest city economies, have developed a diverse range of real estate activities, and as well as rapidly expanding suburban office markets, have led India’s retail and residential development booms.