Delhi best city to live, rent highest in Mumbai but Kolkata has more jobs

The job seekers in Delhi or Chennai, he said, have a more solvent economic background and prefer to wait for the right kind of job. But in Kolkata, people are desparate enough to accept anything and even a lower salary does not deter them.

Meanwhile, according to Cushman & Wakefield's annual report on Industrial Space Across the World, Mumbai and Delhi have witnessed the second and third fastest growth in real estate rentals across the world in 2006.

At 50.2 percent and 33.3 percent respectively, the two cities are next only to Me'ouyan Soreq in Israel, which has seen an incredible 87.5 percent increase.

Two other Indian cities, Bangalore and Hyderabad, figure in the top 12 with rental jumps of 25 percent and 23.1 percent respectively.

According to the study, in terms of industrial rentals, New Delhi has moved nine places to 14th position. Cushman & Wakefield executive MD (South Asia) Sanjay Verma has attributed this jump to the boom in the manufacturing sector.

"Manufacturing is undergoing a renaissance in India. As export volumes are rising rapidly, the sector is becoming increasingly attractive. This is backed by the availability of private capital, strong domestic demand and a large pool of skilled and unskilled labor. The central government is continuing with its legislative reforms and infrastructure improvements," he said.