Home Prices See Sharp Appreciation

Riding high on buoyant demand and increased new supply, residential prices in key 7 markets in India have risen by up to 90 percent in some micro markets over the last 5 years.

These are the findings of a new research study by the Anarock group, based on the analysis of the price trends in the top 3 micro-markets.

Among the shortlisted localities, Bengaluru’s Bengaluru recorded the highest price appreciation of 90 percent between 2019 and H1 2024.According to Anuj Puri, Chairman, Anarock, with a new supply of approx. 17,065 units in the period, the average residential prices at Bengaluru jumped up from INR 4,300 per sq. ft. in 2019 to approx. INR 8,151 per sq. ft. in H1 2024.Further, out of the total new supply launched in this micro market since 2019, over 94 percent was in the price bracket of INR 40 lakh to INR 1.5 Cr – the mid and premium segments. The remaining 6 percent was in the luxury segment priced above INR 1.5 Cr. Notably, there was no new affordable supply in this locality.

Hyderabad’s Kokapet came close behind with an overall price appreciation of 89 percent in this period. The area saw approx. 12,920 units of new supply in the period, and prices rose from INR 4,750 per sq. ft. in 2019 to INR 9,000 per sq. ft. in H1 2024. A whopping 52 percent of the new launch share was in the ultra-luxury category priced above INR 2.5 Cr, followed by a cumulative 30 percent in the mid and premium segments. The remaining 19 percent supply was in the luxury price bracket of INR 1.5 – 2.5 Cr.

Bengaluru’s Whitefield ranks third, recording an 80 percent rise in residential prices in the period. The area witnessed approx. 18,600 units launched between 2019 and H1 2024 – over 66 percent were in the mid and premium budget category, and the remaining 34 percent were in the luxury homes segment. Average prices here increased to INR 8,600 per sq. ft. in H1 2024 from INR 4,765 per sq. ft. in 2019.

• NCR’s Dwarka Expressway ranks fourth with a 79 percent price appreciation. Average prices increased from INR 5,359 per sq. ft. in 2019 to over INR 9,600 per sq. ft. in H1 2024.

• Bengaluru’s Sarjapur Road takes the fifth position with a 58 percent price jump. Average. prices here rose from INR 5,870 per sq. ft. in 2019 to INR 9,300 per sq. ft. in H1 2024.

• Hyderabad’s Bachupally came in sixth with average property prices increasing by 57 percent in the period – from INR 3,690 per sq. ft. in 2019 to over INR 5,800 per sq. ft. in H1 2024.

• Hyderabad’s Tellapur ranks seventh with a 53 percent jump in avg. property prices in this period – from INR 4,819 per sq. ft. in 2019 to INR 7,350 per sq. ft. in H1 2024.

• MMR’s Panvel ranks eighth with a 50 percent price rise in the period – from INR 5,520 per sq. ft. in 2019 to INR 8,300 per sq. ft. in H1 2024.

• NCR’s New Gurugram has the ninth spot with average property prices rising by 48 percent – to INR 9,000 per sq. ft. in H1 2024 from INR 6,100 per sq. ft. in 2019.

• MMR’s Dombivli saw a 40 percent price rise in this period – from INR 6,625 per sq. ft. in 2019 to INR 9,300 per sq. ft. in H1 2024.

Source: ANAROCK Research

“Housing price growth accelerated after the pandemic, particularly if we consider the last two years.  As per our data, the top 7 cities collectively saw over 44 percent of price appreciation in the last five years”, says Puri. At a city level, Hyderabad recorded the highest jump of 64 percent between 2019 and H1 2024, followed by Bengaluru with a 57 percent increase. The lowest price growth of 25 percent was seen in Kolkata. NCR and MMR both witnessed a 48 percent price appreciation each in this period.

The commonly held notion that high new supply in a market tends to curtail price growth did not entirely come true as many of these active residential micro-markets have seen significant price appreciation over the last five years. For instance, Greater Noida West in NCR – which has the fifth highest supply in the region in the last five years – saw a whopping 129 percent price appreciation.

Top 10 Micro-Markets for New Supply 

The past five years have seen a massive infusion of new supply across the top 7 cities, amounting to more than 16,32,650 units between 2019 and H1 2024. City-wise,  MMR witnessed the highest supply approx. 5,25,430 units in this period, followed by Pune with over 295550 units. In terms of micro-markets, MMR’s Dombivli remained the most active market in this period, with the highest new supply.

• Dombivli (MMR) ranks first on the list of the most active residential micro-markets in terms of the number of new units launched in these 5 years. It saw more than 44,990 new units launched since 2019, with average property prices hovering around INR 9,300 per sq. ft. on a built-up area as of H1 2024 – a 40 percent increase. At least 77 percent of the new supply was in the INR 40 lakh to INR 1.5 Cr price bracket, and the remaining 23 percent was in the affordable category.

• Sarjapur Road (Bengaluru)  saw the second highest new supply of approx. 36,150 units, of which 74 percent were in the mid and premium segments and 18 percent in the luxury category. Just 8 percent was affordable housing.

• Panvel (MMR)   saw 34440 units added in the period, of which 64 percent were in the INR 40 lakh to INR 1.5 Cr price bracket, 32 percent in the affordable segment, and 3 percent within the INR 1.5 Cr to INR 2.5 Cr price band.

• Thane West (MMR) ranks fourth with approx. 34,020 new units added with the average price at INR 13,500 per sq. ft. as of H1 2024 (from INR 10,317 per sq. ft. in 2019) – a 34 percent price hike. Of the total new supply here, 77 percent was in the mid and premium segments, 21 percent in the above INR 1.5 Cr bracket, and just 2 percent in the affordable category.

• Greater Faridabad (NCR) came in fifth with approx. 32,740 units were launched in the period. At least 56 percent were in the affordable category, 24 percent in the luxury price bracket, and the remaining 20 percent in the mid and premium segments. Average property rates here rose from INR 3,500 in 2019 to INR 4,700 per sq. ft. in H1 2024 – a 34 percent jump.

• Hinjewadi (Pune) came in sixth with a new supply of 25,140 units between 2019 to H1 2024; a whopping 95 percent was in the mid and premium segments (INR 40 lakh to INR 1.5 Cr), just 4 percent in the affordable segment, and 1 percent in the luxury category. The area has seen prices appreciate by 39 percent in the last five years.

• New Gurugram (NCR), occupied seventh position with nearly  21,125 units launched in the period – 52 percent in the affordable category, 29 percent in the luxury segment, and 19 percent in the mid and premium segments. Average prices here rose by 48 percent in the last five years – from INR 6,100 per sq. ft. in 2019 to INR 9,000 per sq. ft. in H1 2024.

• Dwarka Expressway (NCR) ranks eighth with approx. 20,250 units launched between 2019 to H1 2024, of which over 55 percent were in the affordable category priced above INR 40 lakh, and 33 percent in the luxury segment.

• Tellapur (Hyderabad) ranks ninth with approx. 18,960 new units added and average prices at INR 7,350 per sq. ft. as of H1 2024, up from INR 4,819 per sq. ft. in 2019 – rising by 53 percent . Of the total new supply, 66 percent was in the mid and premium segments, followed by 34 percent in the above INR 1.5 Cr bracket.

• Whitefield (Bengaluru) ranks tenth with approx. 18,600 units launched, of which 66 percent were in the mid and premium segments and 34 percent in the luxury category. There was no new affordable housing supply here.

Source: ANAROCK Research