India’s two primary technology hubs, Bengaluru and Hyderabad, are currently experiencing a remarkable surge in real estate prices. This growth is driven by a substantial increase in demand for new homes, fuelled by the expanding Indian IT sector and the post-pandemic preference for larger, greener living spaces away from city centres.
Data reveals that home prices in key locations within Bengaluru and Hyderabad have soared by as much as 90% over the past five years. In Bengaluru, the suburb of Bagaluru, located near the international airport, has witnessed the most significant increase in property prices, rising by 90% from 2019 to mid-2024. Improved connectivity, particularly with the upcoming completion of the airport metro line, has significantly boosted demand in this area. Moreover, a growing number of homebuyers now seek more spacious homes with ample greenery, further accelerating demand in Bagaluru.
During this period, Bagaluru recorded a supply of approximately 17,065 new residential units. The average price of homes in the area increased from Rs 4,300 per sq. ft. in 2019 to around Rs 8,151 per sq. ft. by the first half of 2024. A closer examination shows that 94% of the new supply in this micro-market falls within the mid and premium segments, priced between Rs 40 lakh and Rs 1.5 crore, with the remaining 6% classified as luxury homes priced above Rs 1.5 crore. Notably, there has been no addition to the affordable housing segment in Bagaluru. Hyderabad’s Kokapet, a prominent commercial and residential hub located in the western part of the city, mirrors this trend. According to Anarock Research, average home prices in Kokapet have surged by 89% since 2019.
During this period, the area saw a new supply of approximately 12,920 units, with prices climbing from Rs 4,750 per sq. ft. in 2019 to Rs 9,000 per sq. ft. in the first half of 2024. The ultra-luxury category, priced above Rs 2.5 crore, accounted for 52% of the new launches, while 30% were in the mid and premium segments. The luxury segment, priced between Rs 1.5 and Rs 2.5 crore, made up the remaining 19%. Meanwhile, Whitefield in Bengaluru has also recorded a substantial 80% rise in home prices over the last five years. Beyond Bengaluru and Hyderabad, the Delhi-NCR market is showing signs of momentum, with Dwarka Expressway in Haryana witnessing a 79% increase in prices, ranking fourth in the list of regions with the steepest price hikes. New Gurugram has also experienced a notable 48% price surge.
In Maharashtra, Panvel, near Mumbai, has been witnessing significant real estate activity. Property prices in Panvel have escalated by 50% over the last five years, partly driven by the expansion of metro lines to Navi Mumbai, which has opened up new micro-markets for developers. The overall residential market across India’s top seven cities has seen an average price appreciation of 44% in the past five years, with Hyderabad leading at 64%, followed by Bengaluru at 57%. In contrast, Kolkata recorded the lowest growth rate at 25%, while the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) both observed a 48% increase in residential property prices during this period.
