Top 7 Cities See 45% Hike : 5-Year Price Surge in Real Estate Says Anarock Report
Residential prices across India’s top cities have surged dramatically over the past five years, driven by strong demand and new housing supply. A recent study by ANAROCK Group Research highlights the most active micro-markets across the top seven cities, with price appreciation trends indicating significant gains, some as high as 90%.
Bengaluru and Hyderabad Lead the Surge
Among the key findings of the Anarock Group Report, Bengaluru’s Bagaluru emerged as the top-performing micro-market, with residential property prices skyrocketing by 90% between 2019 and H1 2024. Prices in the area increased from INR 4,300 per sq. ft. in 2019 to approximately INR 8,151 per sq. ft. in H1 2024. The surge can be attributed to a robust supply of 17,065 units, predominantly in the mid and premium housing segments, with over 94% of the new inventory falling within the INR 40 lakh to INR 1.5 Cr range.
Hyderabad’s Kokapet followed closely, recording an 89% jump in property prices during the same period, according to the Anarock report. Residential prices in the area rose from INR 4,750 per sq. ft. in 2019 to INR 9,000 per sq. ft. in H1 2024, fueled by a supply of 12,920 units. Kokapet saw substantial interest in ultra-luxury housing, with over 52% of the new supply priced above INR 2.5 Cr.
Bengaluru’s Whitefield ranked third with an 80% rise in property prices, reaching INR 8,600 per sq. ft. in H1 2024, up from INR 4,765 per sq. ft. in 2019. During this period, 18,600 units were launched in Whitefield, with 66% in the mid and premium segments.
NCR and MMR Also See Strong Gains
NCR’s Dwarka Expressway recorded a 79% increase in property prices, from INR 5,359 per sq. ft. in 2019 to INR 9,600 per sq. ft. in H1 2024, placing it fourth in the ranking. Meanwhile, Bengaluru’s Sarjapur Road, which experienced a 58% price jump, ranked fifth. Average prices in Sarjapur rose from INR 5,870 per sq. ft. to INR 9,300 per sq. ft. over the same period.
Other key markets include Hyderabad’s Bachupally (57% price rise), Tellapur (53% rise), MMR’s Panvel (50% rise), and NCR’s New Gurugram (48% rise). Even MMR’s Dombivli, which ranked 10th, saw a 40% price increase, from INR 6,625 per sq. ft. in 2019 to INR 9,300 per sq. ft. in H1 2024, according to the Anarock Group Report.
High Supply Markets Still Witness Price Gains
Despite common beliefs that high supply can limit price growth, many high-supply micro-markets witnessed substantial appreciation. For instance, Greater Noida West in NCR, which recorded the 5th highest supply in the region, saw a price surge of 129% over the last five years.
Regarding new housing supply, MMR’s Dombivli topped the list with approximately 44,990 units launched between 2019 and H1 2024. Bengaluru’s Sarjapur Road followed with 36,150 units, and Panvel added 34,400 units. Other key supply markets include Thane West (34,020 units), Greater Faridabad (32,740 units), and Hinjewadi (25,140 units).
Source: ANAROCK Research
The overall residential market in India’s top 7 cities saw a collective 45% rise in prices between 2019 and H1 2024, with Hyderabad leading at 64% and Bengaluru following with a 57% increase. The robust demand and substantial new supply in mid and premium segments indicate sustained growth potential in these urban hubs. However, with luxury housing also seeing notable gains, developers and buyers alike are optimistic about the future of residential real estate in India.
