FROM BENGALURU TO KOCHI: WHAT'S DEFINING SOUTH'S PROPERTY BOOM

South India states of Karnataka, Andhra Pradesh, Telangana, Tamil Nadu, Kerala are often called the "Engine Room" of Indian economy and rightly so. Together these five states contribute over 31 percent of India's GDP and are home to some of the biggest international companies. Another testimony to the attractiveness, is the 47% sales surge in housing market of Hyderabad, Bengaluru, and Chennai in Q3, even as overall demand across eight major cities dipped due to weak performance.

THE SOUTHERN EDGE
South India scores due to its strategic location. The coastal cities such as Chennai, Kochi, and Mangalore being port hubs have a world-class logistics infrastructure. Complementing the ports are international airports in Bengaluru, Chennai, Hyderabad, Kochi, and Thiruvananthapuram, connecting the region to major global hubs. Furthermore,the Golden Quadrilateral highway network and Dedicated Freight Corridors (DFCs) enhance the connectivity with other parts of the country.

• Economic Prowess: Thriving IT-ITeS, BFSI, GCCs and pharmaceutical & automobile sectors are attracting investments and generating robust employment opportunitiesthat drives these state's economy and rising income ofthe population

•Investment-friendly Policies: Initiatives like Singlewindow clearance, Stamp duty exemptions and power subsidies for manufacturing projects, Tax rebates and capital subsidies for investments in renewable energy and R&D attract investors. Tamil Nadu's Guidance Bureau and Telangana's T-Hub and TS-iPASS are the latest examples.

•Start-Up Hubs: Cities like Chennai, Hyderabad and Coimbatore are becoming start-up hubs, given the IT enabled environment and sector-specific support policies and funding favoring MSMEs.

•Supportive Real-estate Regulations: Amendments to Kerala Municipality Building Rules (KMBR), Telangana's TS-bPASS and Karnataka's Bhoomi Project for land record digitalization are some of the examples of state-led initiatives to boost real estate in this region.

When it comes to the real estate market in South India cities, it is expanding more quickly than ever. Apart from Bangalore, Hyderabad and Chennai, cities like Hosur, Kochi & Coimbatore, have emerged as the top destinations for homebuyers, investors and domestic and global conglomerates.While, cities like Ooty, Mysuru and Puducherry have become second home destinations for HNIs.

We are decentralizing our technology economy by developing Tier2 cities as the next generation innovation clusters. This is not merely an economic strategy; it is a commitment to equitable growth". Karnataka Chief Minister Siddaramaiah


SOUTH INDIA CITIES: A REAL ESTATE GOLDMINE
In 1990's Bengaluru gained prominence with the IT influx followed by the rise of Hyderabad post-2014 due to businessfriendly policies. And now other South Indian cities are becoming the property goldmine. Today, Bengaluru, Hyderabad, and Chennai have become major real estate hubs primarily due to their robust IT and tech-driven economies, rapid infrastructure development, and large skilled talent pools. These factors drive demand for both commercial and residential properties. Coimbatore, Mysore, and Hosur are the new real estate growth centres due to tech, auto (EVs in Hosur), and traditional sectors (textiles in Coimbatore), coupled with lower real estate costs, developing infrastructure and proximity to IT cities of South. A major shift recently has been towards Ooty, Mysuru, and Puducherry, seeing much demand from NRIs and investors, tapping the high appreciation potential in vacation homes and upcoming IT parks and SEZs as well as the airport infrastructure expansion. As each city charts its own trajectory, here are the defining drivers of the real estate of these prominent cities of South India and the trends and opportunities each city offers to the property buyers.

We have readied a land bank of 50,000 acres in Andhra Pradesh for setting up industries and projects. Our long-term vision targets Rs 50 lakh crore investments and a tech-driven Quantum City. Andhra Pradesh Chief Minister N. Chandrababu Naidu

In 1990's Bengaluru gained prominence with the IT influx followed by the rise of Hyderabad post-2014 due to business-friendly policies. And now other South Indian cities are becoming the property Goldmine.


CITIES FOR RENTAL INCOME
Bengaluru, known as the "Silicon Valley of India, hosts over 40% of India's GCCs and is one of India's most dependable income-generating cities. The city not only offers attractive employment opportunities with tech giants, but city's cosmopolitan culture too attracts the steady inflow of whitecollar professionals, while strong mid and-premium housing supply ensures an attractive rental yield for homebuyers. Areas like Whitefield, HSR Layout, Bellandur, and Hebbal, located near IT parks, in particular have delivered healthy yields. In last few years, property prices have risen sharply, yet, Bengaluru continues to offer long-term returns for investors, making it a top choice for rental-driven portfolios. Bengaluru's rental yields range from as high as 7-8% in some areas to a steady from 3.5% to 4.5% in general. Chennai is the second-largest exporter of IT and IT-enabled Services in India and its economic growth drivers revolve around IT, automotive, healthcare, and manufacturing sectors. Unlike more volatile markets, real estate here is defined by stability and end-user demand.

The city promises predictable rental income and capital appreciation. Areas like OMR, Porur, Velachery, Sholinganallur, and Adyar figure prominently as high rental yield markets. Tech parks (TIDEL Park, SIPCOT IT Park) and auto manufacturing hubs drive significant job opportunities and demand for residential and commercial spaces while, being the "Health Capital of India," Chennai's top-tier hospitals attract a high percentage of both domestic and international medical tourists, creating a steady demand for rental properties. Chennai's rental yields range from as high as 6-7% in some areas to a steady from 3% to 4% in general. Hyderabad in the last decade has emerged as a investorfriendly market driven by the IT and pharmaceutical sectors, ensuring constant influx of professionals. Areas like Gachibowli, HITEC City, and Kondapur have high rental demand from IT professionals, leading to attractive rental yields. Emerging areas like Kokapet, Patancheru, and Tellapur are seeing rapid infrastructure development, promising long-term property value appreciation.

And Specialized industrial areas such as Genome Valley (biotech), Patancheru (pharma), and Adibatla (aerospace) have generated significant commercial and residential property demand in the surrounding areas. In all,job opportunities, low living costs, and planned urban development in Hyderabad has createda strong blend of strong rental prospects and sustained capital appreciation potential for income-focused buyers. Hyderabad's rental yields range from 8-10% for commercial properties to a steady 4% to 5% housing rental in general.

The government would develop the proposed "Future City" as a role model for the country by generating employment and livelihood opportunities while ensuring the provision of civic amenities. Telangana Chief Minister A Revanth Reddy


CITIES FOR CAPITAL INVESTMENT
Coimbatore often referred to as the "Manchester of South India" due to its extensive textile industry has quietly become a high-potential market for long-term capital investors. Its strong industrial base and growing IT sector is currently building a resilient foundation for real estate growth. Its connectivity to major cities via an international airport, railway network, and national highways makes it an attractive economic activities hub, witnessing a steady inflow of working population as well. Areas like Saravanampatti and Avinashi Road are high in demand due to the growing IT sector and infrastructure development. Additionally, several Special Economic Zones (SEZs) are creating a strong market for commercial and residential investment, making Coimbatore as favorite city for investors seeking a safe, growing market with clear upward momentum.

Coimbatore showed strong capital appreciation in 2025, leading Tier 2 cities with a 52% surge in property sales value in Q1 2025. Hosura major industrial hub, especially for automobiles, and electric vehicle (EV) has emerged asa strategic capitalinvestment destination. It is considered one of the best places to invest in Tamil Nadu being a key part of the Bengaluru-Chennai Industrial Corridor (BCIC) and due to ongoing infrastructure upgrades like proposed metro connectivity toward Bengaluru. Hosur is also one of the fastest-growing cities in the world by population, which fuels demand for housing and significant appreciation potential.

Investors are focusing on emerging corridors like Kelamangalam Road, Bagalur, and Athimugam, where earlystage development offers strong upside. As spillover demand from Bengaluru intensifies, Hosur presents acompelling opportunity for investors seeking high future appreciation at comparatively low entry costs. Hosur projected yearly price increases ranges 15-20%. Kochi is the financial, commercial, and industrial capital of Kerala. Driven by its port-led economy, IT growth, and smart city development, it has steadily evolved into one of South India's most promising capital-investment destinations. Areas like Kakkanad (the IT hub), Marine Drive (luxury properties), and Aluva (emerging potential with Metro connectivity) are considered top investment spots.

Government is actively involved in preparing the third master plan for Chennai, focusing on economic progress, and technological initiatives. Similar plans were being readied for developing cities and villages across Tamil Nadu. Tamil Nadu Chief Minister M K Stalin


For investors, Cochin Special Economic Zone (CSEZ) provides incentives like tax breaks and streamlined compliances. Additionally, Kerala's natural beauty makes Kochi an attractive destination for investments inhospitality ventures. Property prices are still relatively affordable, creating room for long-term value. Average Annual Appreciation in Kochi is 8-12% across the city's key residential areas.

CITIES FOR SECOND HOMES
Mysuru is emerging as an attractive alternative to Bengaluru for homebuyers and investors alike. What's more, its nice environment and rich cultural heritage have made the city a hotspot for second homes for Bengaluru residents because of its closeness to Bengaluru. In fact, it is becoming a preferred second-home market for people from across the country thanks to Mysuru's clean environment and heritage appeal. The city blends modern conveniences with a relaxed lifestyle, attracting professionals and families seeking quieter weekend or retirement living. Villa projects, plotted developments and eco-communities are the sought after properties, particularly along the ring road and towards Chamundi Hills. Increase in tourism and cultural events have further led to the rise in number homestays in the city. despite the increase in population and vehicle density, Mysuru offersa balanced proposition-affordable entry prices, stable appreciation, and most practical second-home destination of India.

Kerala is stepping into a new era of urban living and technological innovation. The largescale expansion of Infoparks Kerala will position Kochi as a true leader in India's IT landscape. Kerala's Chief Minister, Pinarayi Vijayan

Making a bullish case for long-term real estate demand in South India are the recent government initiatives to create multiple economic zones and focus on inclusive growth.



Puducherry, French colonial charm and serene coastal lifestyle stand out as the prime reasons for the city becoming vibrant second-home market of the country edging out the once popular destination - Goa. Buyers are attracted to its mix of beachside living, wellness retreats, and creative community lifestyle. The most popular property configuration are villas, restored heritage homes, and boutique plots and Auroville, White Town, and Serenity Beach are the much in demand areas. The city's tourism-driven economy also provides excellent potential for hospitality segment and shortterm rentals. Property values in key areas of Puducherry are consistently rising, seeing an appreciation of almost 20%. Ooty including nearby area Coonoor is a year-round tourist destination and a sought-after luxury getaway. It's growing in popularity among HNIs and second-home buyers, thanks to its controlled developmentand preserved natural charm. Its cool climate, pristine landscapes, and old-world charm are the biggest draws for the buyers investing either in boutique villa communities, or seeking short-term holiday rentals. Hospitality properties in Coonoor, Lovedale, and Ketti Valley are popular for investment, among metro-city professionals, retirees, and NRIs. While, Ooty offers an ideal second-home opportunity with passive rental potential, the limited supply due to topography and regulations drives the long-term price stability of property values.

UNLOCKING A NEW ERA
Overall, the South Indian real estate market is set for significant growth and transformation through 2030, offering substantial opportunities for both homebuyers and investors. The South India states - anchored by improvements in infrastructure and connectivity-are likely to maintain strong traction, especially in office-space absorption and mid-to-upper residential segments. Making a bullish case for long-term real estate demand in tier II &lll cities of South India are the recent state governments initiatives to create multiple economic zones and focus on inclusive growth. For a buyers and investors, residential and commercial real estate will continue to bring good returns as the strong demand from sectors like IT/ITeS, life sciences and manufacturing is here to stay and is expected to grow further in coming years.