What Are the Fastest Growing Cities in the World?
India's urban centers occupy just 3% of the country’s land but contribute an estimated 60% to its GDP. The nation is witnessing rapid urbanization, which is expected to increase India’s urbanization rate from 36.5% to 42.5% by 2034. This expansion will lead to the rise of more cities with populations exceeding 1 million, from 64 to an anticipated 70 by 2034.
Hyderabad: Hyderabad, India’s vibrant tech and business hub, is projected to become the fourth fastest-growing city in the world by GDP growth rate between 2019 and 2035, according to Knight Frank India’s latest report titled ‘Indian Real Estate: A Decade from Now’. The city is set to achieve an annual growth rate of 8.47%, contributing a massive $201.4 billion to India’s GDP by 2035.
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Also Read: Real Estate Crisis in Hyderabad: HMDA Delays Kokapet Land Auction
Top Fastest Growing Cities: A Global Comparison
Surat, Agra, and Bengaluru are expected to lead the global rankings, with Surat growing at an impressive 9.17% YoY, Agra at 8.58%, and Bengaluru at 8.50%. By 2035, Surat’s GDP will contribute $126.8 billion, Agra’s will add $15.5 billion, and Bengaluru’s contribution will amount to $283.3 billion.
The Top 10 Fastest Growing Cities by GDP Growth (2019-2035) include:
| Rank | City | Estimated YoY Growth | Projected Contribution to India’s GDP by 2035 |
|---|---|---|---|
| 1 | Surat | 9.17% | $126.8 billion |
| 2 | Agra | 8.58% | $15.5 billion |
| 3 | Bengaluru | 8.50% | $283.3 billion |
| 4 | Hyderabad | 8.47% | $201.4 billion |
| 5 | Ahmedabad | 8.34% | $51.2 billion |
| 6 | Pune | 8.21% | $74.3 billion |
| 7 | Chennai | 8.05% | $105.2 billion |
| 8 | Jaipur | 7.94% | $10.8 billion |
| 9 | Lucknow | 7.83% | $23.6 billion |
| 10 | Vijayawada | 8.16% | $21.3 billion |
India’s Urban Growth: A Powerhouse of Economic Development
India’s urban centers occupy just 3% of the country’s land but contribute an estimated 60% to its GDP. The nation is witnessing rapid urbanization, which is expected to increase India’s urbanization rate from 36.5% to 42.5% by 2034. This expansion will lead to the rise of more cities with populations exceeding 1 million, from 64 to an anticipated 70 by 2034.
India’s Real Estate Sector: A $1.5 Trillion Market by 2034
India’s real estate sector is on track to become a $1.5 trillion market by 2034, constituting 10.5% of the nation’s economic output. Knight Frank, in association with the Confederation of Indian Industry (CII), estimates that the residential sector will lead this growth with a projected value of $906 billion, followed by office spaces contributing $125 billion. The manufacturing land sector and warehousing will also experience significant growth, projected to generate $28 billion and $8.9 billion, respectively.
The urbanization trend will further drive demand for housing, commercial spaces, and infrastructure, fueling growth in the real estate and services sectors. However, this rapid expansion also poses challenges related to infrastructure, social services, and overall urban development.
Government Initiatives for Urban Development
In response to these challenges, the Indian government has launched several initiatives to ensure sustainable urban growth. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and the Smart Cities Mission (SCM) are key programs aimed at improving urban infrastructure, service delivery, and quality of life through smart solutions. These efforts are expected to play a crucial role in shaping the future of India’s cities and enhancing their economic output.
Conclusion: Hyderabad at the Forefront
Hyderabad’s projected 8.47% annual GDP growth solidifies its position as a leading economic hub. The city’s dynamic mix of technology, business, and infrastructure is driving its rapid growth, making it a key player in India’s economic future. As India’s real estate sector continues to boom, the government’s focus on urbanization and development will be critical in maintaining this momentum.
