Which URL is SEO friendly among these ?

URL selection

[gmanendra]

I'm planning to start a realestate site in India. Which will include all city's Like Mumbai, Delhi, Hyderabad etc. I'm planning to launch this in WordPress plat forum as I'm good in this compared to other platforms. I’m planning to install WP in sub directories like
1. www.example com/hyderabad
2. www.example com/Delhi
3. www.example com/Mumbai

If I do like this then the URL of the post/property will look like

1. www.example com/hyderabad/2hbk-flat-near-gatewayofindia
2. www.example com/mumbai/3hbk-individualhouse

Is this good for SEO point of view to drive organic traffic or it is better to install in sub domain like

1. www.hyderabad.example com/2hbk-flat-near-airport

Among these can you please tell me which method is SEO friendly to drive the organic traffic and easy to maintain.

[edited by: brotherhood_of_LAN at 3:22 am (utc) on Aug 5, 2013]
[edit reason] exemplified domain as per site terms [/edit]

[brotherhood of LAN]

Welcome gmanendra,

All your examples are fine, pretty much any URL is SEO friendly when it's descriptive and avoids using session related variables.

Avoiding subdomains would be easier to maintain.

[phranque]

the main advantage to subdomains is locating and identifying servers for geotargeting optimization.
if your site is non-international there is less to gain from this although there may be some latency-related advantages to regionally located servers in a large country.