Kanpur, Lucknow And Other Tier 2 Cities Outpace Delhi In Property Value Growth

India’s smaller cities are taking centre stage in the real estate market, with new data from Magicbricks showing that Tier 2 cities are outperforming major metros in capital appreciation. Buoyed by infrastructure upgrades, better affordability, and shifting buyer preferences, these emerging markets are now delivering higher returns than traditionally dominant Tier 1 cities.

Kanpur and Lucknow have emerged as standout performers in North India, posting year-on-year appreciation of 24.53 per cent and 22.61 per cent respectively, both ahead of Delhi’s 15.7 per cent. Despite significantly lower average prices, Rs 6,986 per sq. ft. in Kanpur and Rs 6,394 in Lucknow, the returns signal robust investor interest. Dehradun and Jaipur also offered strong prospects with rates hovering around Rs 5,653 per sq. ft.

“These cities are no longer just affordable alternatives, they're now on the radar for serious investment,” said Prasun Kumar, Chief Marketing Officer at Magicbricks. “With rapid infrastructure expansion and growing demand from younger buyers, Tier 2 markets are becoming core growth zones.”

Western India shows a similar pattern. Goa, traditionally known for holiday homes, saw a remarkable 66.37 per cent annual spike in prices, one of the sharpest gains in the country. Average rates reached Rs 13,290 per sq. ft., compared to Mumbai’s Rs 28,921. This growth is being driven by a rising appetite for second homes, high rental yields, and increased tourism-linked investments.

Meanwhile, the eastern region isn’t far behind. Patna recorded a 15.12 per cent jump in capital values, pushing the average appreciation across Tier 2 cities in Eastern India to 14.63 per cent.

In the South, Kochi outshone Chennai with a 16.55 per cent rise in property values, compared to Chennai’s 11.9 per cent. Analysts say the city’s improving infrastructure and lower entry cost continue to attract new buyers.

Overall, Tier 2 cities posted an average capital appreciation of 17.6 per cent, compared to 15.7 per cent in Delhi and 20.3 per cent in Mumbai, reinforcing a clear trend. India’s real estate growth is no longer confined to big metros.