Chennai, formerly known as Madras, is one of India's biggest metropolitan cities with a population of more than 4 million.

The coastal city is a hub for commerce in southern India and "has a diverse economic base, strong cultural life and arts [scene], including cinema and film production," said Barnes.

It is also a magnet for ultra-high net worth individuals in the region.

Of the 12 cities on this list, Chennai offers the most affordable options for real estate investors. Two-bedroom apartments around the city can sell for as low as $40,000, while apartments in prime locations are priced around $160,000.