In a significant shift in housing trends, Mumbai Metropolitan Region’s (MMR) peripheral areas have recorded higher price appreciation than many prime city locations over the past six years, according to ANAROCK Research. Leading the charge is Panvel, which saw a 58% surge in residential prices, outpacing Worli, one of Mumbai’s most prestigious addresses, which recorded a 37% increase during the same period.
Panvel vs. Worli: A Case Study
Between 2019 and Q3 2024, Panvel’s average residential prices rose from ₹5,520 per sq. ft. to ₹8,700 per sq. ft., reflecting a 58% appreciation. Comparatively, Worli saw prices rise from ₹38,560 per sq. ft. to ₹53,000 per sq. ft., translating to a 37% growth. Lower Parel, another prime Mumbai area, recorded a 49% increase, while peripheral Virar matched Panvel’s 58% growth, with prices climbing from ₹4,440 per sq. ft. to ₹6,850 per sq. ft.
City-Wide Trends in Top 7 Cities
Across India’s top seven cities, peripheral areas have outperformed their prime counterparts in price growth over the last six years. Improved connectivity, enhanced infrastructure, and the availability of spacious housing projects in peripheral areas have fueled this trend.
- Bengaluru: Gunjur, a peripheral area, topped the charts with a 69% price jump, while Thanisandra Main Road, a prime location, saw a 62% increase.
- NCR: Noida Expressway prices grew by 66%, outpacing Raj Nagar Extension, which saw a 55% rise.
- Pune: Wagholi (peripheral) grew by 37%, compared to Wakad (prime), which recorded a 27% increase.
- Kolkata: Peripheral Madhyamgram saw 43% appreciation, while prime Joka grew by 51%.
- Chennai: Navalur (peripheral) grew by 54%, outpacing Anna Nagar (prime), which saw a 35% rise.
- Hyderabad: Gachibowli and Kondapur, both prime locations, recorded 86% price growth each, surpassing peripheral areas like Kompalli and LB Nagar.
Drivers of Peripheral Growth
Santhosh Kumar, Vice Chairman of ANAROCK Group, attributes this trend to the higher scope for appreciation in peripheral areas compared to already established prime locations. Improved infrastructure, connectivity, and the availability of luxury housing projects in these areas have also driven demand.
“With the pandemic pushing buyers towards larger homes and open spaces, developers have focused on creating state-of-the-art projects in the peripheries,” Kumar added. “These areas offer better value for money and align with post-pandemic housing preferences.”
Conclusion
As housing trends evolve, peripheral areas are emerging as strong contenders to traditional prime markets. Panvel’s rise against Worli exemplifies the shifting dynamics, reflecting the growing allure of affordability and liveability in India’s outskirts.
Also Read: Panvel Real Estate Market Sees Robust Growth
