Rising Residential Corridors of 2023

The top 7 real estate markets of MMR, Bangalore, Delhi-NCR, Chennai, Hyderabad, Pune, Kolkata, have seen 15-30 percent increase in average residential prices in rising corridors in 3 years, with Gachibowli in Hyderabad emerging as the hottest residential corridor with 33 percent increase in prices.

Buoyed by strong housing demand, the average residential prices in key micro markets across the top 7 cities saw a significant surge in the last three years between October-end 2020 and the corresponding period in 2023. Latest ANAROCK Research data indicates that among the key micro markets across top 7 cities, Hyderabad’s Gachibowli recorded the highest 33% jump in average residential prices between 10M 2020 and 10M 2023, followed by Kondapur with a 31% rise.

In Gachibowli, the average residential prices as of October 2023-end stood at approx. INR 6,355 per sq. ft. In the corresponding period of 2020, average prices in this locality were INR 4,790 per sq. ft. Hyderabad’s Kondapur recorded a 31% average price rise in this period – from INR 4,650 per sq. ft. in October-end 2020 to INR 6,090 per sq. ft. in October-end 2023.Bengaluru’s Whitefield occupies third position with a 29% jump in this three-year period – from INR 4,900 per sq. ft. as on 10M 2020 to INR 6,325 per sq. ft. by 10M 2023.

Key areas in MMR and NCR also saw average prices surge between 13-27% in this three-year span. In NCR’s Greater Noida West, average prices have increased by 27% in the period. In MMR, Lower Parel saw average prices appreciate by 21%.

According to Prashant Thakur, Regional Director & Head – Research, ANAROCK Group, by the end of October (which marks the culmination of the year’s peak housing sales period), housing sales in top 7 cities created a new peak this year with sales far exceeding the previous peak of 2014. Led by both robust demand and increased input costs, there has been a significant surge in average housing prices across key micro markets. Among the top 7 cities, key areas in the IT-led cities of Hyderabad, Bengaluru and Pune saw the highest surge in average prices, Hyderabad, according to Thakur  also has a higher scope of price appreciation because in pre-Covid-19, the city’s average prices were relatively lower than in Bengaluru’s IT/ITeS hubs. As of 10M 2023, the average prices in Hyderabad’s key micro markets are almost at par with Bengaluru’s IT-led housing hotspots.” 

City-wise Trends

Source: ANAROCK Research

• Hyderabad’s top 3 micro-markets seeing high average price rises in the last 3 years are Gachibowli, Kondapur and Miyapur with 33%, 31% and 28% hikes, respectively.
• Bengaluru’s top 3 localities – Whitefield, Thanisandra Main Road and Sarjapur Road – saw average prices appreciate by 29%, 27% and 26%, respectively in the period.
• Pune’s prominent localities for average price increases are Wagholi (25%), Hinjewadi (22%) and Wakad (19%) – all three in the city’s IT influence zone.
• MMR’s top 3 micro-markets witnessing high price rises are Lower Parel, Andheri and Worli with 21%, 19% and 13% increases, respectively.
• NCR’s top 3 localities for average price increases are Greater Noida West, Sector 150 (Noida) and Raj Nagar Extension (Ghaziabad) with 27%, 25% and 21% hikes, respectively.
• Chennai’s prominent localities for price rises are Perumbakkam (19%), Guduvanchery (17%) and Perambur (15%).
• Kolkata’s top 3 prominent micro-markets which recorded high price rises are Joka, Rajarhat and EM Bypass, with a surge of 24%, 19% and 13%, respectively.