Mumbai, 17 March 2025: Home prices in several key micro-markets across India have grown significantly between 2021 and 2024, outpacing rental growth in many areas, according to the latest ANAROCK Research data.
Among the top seven cities, Noida’s Sector-150 saw the highest jump in capital values, surging by 128%, while rental values in the area increased by 66%. Similar trends were observed in major cities like Hyderabad, Mumbai Metropolitan Region (MMR), Bengaluru, and the National Capital Region (NCR), where home prices rose faster than rental values.
Top Markets Where Home Prices Outpaced Rent Growth
- Noida (Sector-150): Capital values soared by 128%, while rental values rose by 66%.
- NCR (Sohna Road): Property prices increased by 59%, with rental growth at 47%.
- Mumbai (Chembur & Mulund): Capital values rose by 48% and 43%, respectively, while rental appreciation was lower at 42% and 29%.
- Hyderabad (HITECH City & Gachibowli): Capital values increased by 62% and 78%, compared to rental growth of 54% and 62%, respectively.
- Bengaluru (Thanisandra Main Road): Home prices climbed by 67%, while rental values grew 62%.
Where Rents Rose Faster Than Home Prices
In contrast, cities like Pune, Kolkata, and Chennai saw rental values increase more than property prices.
- Pune (Hinjewadi & Wagholi): Rental values grew 57% and 65%, while capital appreciation was 37% in both areas.
- Kolkata (EM Bypass & Rajarhat): Rents increased by 51% and 37%, while property values appreciated by 19% and 32%.
- Chennai (Pallavaram & Perambur): Rental growth outpaced capital value growth by 44% vs. 21% and 36% vs. 23%, respectively.
What This Means for Homebuyers and Investors
The report highlights that investors looking for long-term property appreciation should focus on cities where capital values are rising faster. Meanwhile, those prioritizing rental income should consider markets where rental values are growing steadily.
“More than ever, investors must align their strategy with specific locations,” says Anuj Puri, Chairman – ANAROCK Group. “Those looking for long-term capital appreciation can target markets with high appreciation, while rental-focused investors should focus on areas where rents are rising consistently.”
This trend underscores a key decision for homebuyers—whether to buy or rent—based on how property prices and rental values are evolving in their preferred locations.
| City | Micro Market | Capital Value Growth (%) | Rental Value Growth (%) |
|---|
| Noida | Sector-150 | 128% | 66% |
| Hyderabad | Gachibowli | 78% | 62% |
| Bengaluru | Thanisandra Main Rd | 67% | 62% |
| Hyderabad | HITECH City | 62% | 54% |
| Bengaluru | Sarjapur Rd | 63% | 76% |
| NCR | Sohna Road | 59% | 47% |
| MMR | Chembur | 48% | 42% |
| MMR | Mulund | 43% | 29% |
SFI Analysis
The latest ANAROCK data reveals a clear trend: in key Indian cities, home prices are rising faster than rental values, making ownership more lucrative in select markets. Noida’s Sector-150 saw a massive 128% increase in capital values, while Hyderabad, NCR, and MMR also witnessed strong property price growth. In contrast, cities like Pune, Kolkata, and Chennai experienced higher rental appreciation than capital growth. This divergence suggests that investors should focus on capital growth markets, while rental-focused buyers should target cities where rents are rising steadily. The data underscores the importance of location-specific investment strategies for homebuyers and investors alike.
Also Read: Rising property prices have boosted present homeowners’ home equity
