What makes a city truly liveable for you, shorter commutes, better housing, or stronger job opportunities? A new report is reshaping that debate, placing Hyderabad ahead of Bengaluru in the race for India’s
most liveable metro. The shift raises a sharper question- is India’s urban power centre quietly changing?
The findings come from the ‘VRCT 2026’ City Index published by Unboxing BLR, which evaluated eight major Indian cities across multiple indicators of urban living. The report was unveiled on March 24 at the Indiaspora Global AI Summit.
Hyderabad has overtaken Bengaluru to emerge as India’s most liveable metropolitan city, according to a new report. The 159-page study ranks cities based on 15 parameters, including travel, housing, infrastructure, diversity and climate, to assess overall ease of living. Hyderabad secured the top position, pushing Bengaluru to second place, followed by Kolkata, Chennai, Delhi NCR, Pune, Greater Mumbai and Ahmedabad.
According to the report, Hyderabad’s rise is largely driven by stronger performance in housing and diversity. These factors have helped the city offer a more balanced urban experience compared to Bengaluru, which has faced challenges in areas such as infrastructure and travel time.
While both cities report similar average commute durations of around 58 to 59 minutes, Hyderabad commuters tend to cover longer distances, approximately 22 kilometres on average, compared to about 18 kilometres in Bengaluru. This difference reflects variations in urban planning and traffic flow.
Despite slipping to second place, Bengaluru continues to dominate in employment-related metrics. The report highlights the city’s strength in formal job creation, technical talent density and hiring momentum, particularly in high-skilled roles. It also remains a leading hub for startups, global capability centres (GCCs) and emerging technologies such as artificial intelligence.
However, Hyderabad is increasingly challenging Bengaluru’s position in areas such as new company formation, Grade A office space development and GCC expansion. Both cities have seen significant commercial growth, collectively adding around 66 million square feet of premium office space since 2019.
In terms of economic strength, Delhi NCR and Greater Mumbai ranked highest on the Economic Heft Index, which evaluates long-term economic impact and recent growth trends. Bengaluru, however, continues to show rapid progress driven by its innovation-led economy.
Speaking about the report, Malini Goyal, co-founder of Unboxing BLR, noted that city-level indices remain relatively uncommon in India. She said the growing availability of data has made it possible to create more detailed and practical assessments of urban life.
The report also highlights structural differences between the two leading cities. Bengaluru’s growth is largely innovation-driven, supported by a strong technology workforce and higher discretionary spending. Hyderabad, on the other hand, shows a greater focus on essential consumption such as housing and retail credit, although the gap is gradually narrowing as the city attracts more knowledge-based investments.
The latest rankings reflect a shifting urban landscape in India, where multiple cities are competing to offer a better quality of life while adapting to rapid economic and demographic changes.
