Hyderabad, Bengaluru home prices surge 33% in 3 years; similar trends in other key cities

In a recent report by Anarock Research, the residential real estate market in key Indian cities, including Hyderabad, Bengaluru, Kolkata, Delhi-NCR, and Pune, has witnessed a remarkable surge in home prices, attributed to a surge in demand for residential properties and escalating costs of essential construction materials. Over the past three years, home prices have increased by up to 33% in some of the prime micro-markets in India.

Hyderabad leads the pack, with the average prices in its top three micro-markets – Gachibowli, Kondapur, and Miyapur – experiencing a significant rise of 33%, 31%, and 28%, respectively. Bengaluru's top three localities – Whitefield, Thanisandra Main Road, and Sarjapur Road – witnessed average price appreciation of 29%, 27%, and 26% during the same period. In Pune, notable localities like Wagholi (25%), Hinjewadi (22%), and Wakad (19%), situated in the city's IT hub, recorded substantial surges.

Within Delhi's National Capital Region (NCR), Greater Noida West, Sector 150 (Noida), and Raj Nagar Extension (Ghaziabad) reported a rapid increase in average prices, witnessing growth rates of 27%, 25%, and 21%, respectively, over the past three years.

Prashant Thakur, Regional Director & Head of Research at ANAROCK Group, notes that the housing sales in the top seven cities have reached new peaks this year, surpassing the previous peak in 2014. He attributes this surge to strong demand and increased input costs, highlighting a shift from the stagnant prices observed until the pandemic year of 2020.

Ravi Aggarwal, Co-founder & Managing Director of Signature Global (India) Ltd., explains that the surge in property prices is driven by factors such as heightened input and construction costs, rising land prices, and increased demand for larger homes with enhanced amenities. Despite these increases, the industry has effectively absorbed higher costs, and demand continues to remain robust."