Residential real estate prices have surged dramatically over the past five years, with the top seven cities witnessing a collective increase of 45%, and some markets seeing hikes exceeding 90%. According to a new analysis by ANAROCK Research, Bengaluru and Hyderabad have been at the forefront of this price surge.
Bagaluru in Bengaluru tops the list with an astonishing 90% increase in average residential prices, climbing from INR 4,300 per square foot in 2019 to approximately INR 8,151 per square foot in the first half of 2024. This rapid price growth is attributed to a significant influx of new supply, with around 17,065 units introduced in the area during this period. Notably, over 94% of these new units were in the mid and premium segments, with no new affordable housing added.
Hyderabad’s Kokapet follows closely, with a 89% rise in property prices. The area saw its prices soar from INR 4,750 per square foot in 2019 to INR 9,000 per square foot in early 2024. Approximately 12,920 new units were launched, with more than half of the new supply falling into the ultra-luxury category.
Whitefield, another prominent locality in Bengaluru, recorded an 80% price appreciation, with average prices increasing from INR 4,765 per square foot to INR 8,600 per square foot. The area saw about 18,600 new units introduced, with the majority in the mid and premium categories.
The Dwarka Expressway in the National Capital Region (NCR) ranks fourth, with a 79% increase in average prices. The locality’s prices jumped from INR 5,359 per square foot in 2019 to over INR 9,600 per square foot in the first half of 2024.
Sarjapur Road in Bengaluru, and Bachupally and Tellapur in Hyderabad also feature prominently in the rankings, with price increases of 58%, 57%, and 53% respectively. Other notable mentions include Panvel in the Mumbai Metropolitan Region (MMR) and New Gurugram in NCR, which experienced price rises of 50% and 48%, respectively.
In terms of new housing supply, MMR’s Dombivli was the most active market, with approximately 44,990 new units launched over the past five years. Sarjapur Road in Bengaluru and Panvel in MMR followed, with 36,150 and 34,400 new units respectively.
Anuj Puri, Chairman of ANAROCK Group, commented on the trends, stating, “The acceleration in housing prices, particularly over the past two years, highlights a robust demand coupled with significant new supply. While the commonly held belief that high new supply limits price growth is not always true, our data shows substantial appreciation in many active residential micro-markets.”
Puri also noted that, despite high new supply in some areas, residential prices have continued to rise significantly. For example, Greater Noida West in NCR, with the fifth-highest supply in the region, saw a remarkable 129% increase in prices.
As the real estate market continues to evolve, these trends indicate a dynamic landscape where demand, supply, and pricing are closely intertwined. The data underscores the importance of monitoring micro-market activity for understanding broader market movements.
Also Read: Residential Sales in Top Seven Cities Projected to Grow in FY2025
