Housing prices in India’s top seven metropolitan areas have witnessed a significant surge, rising by 44% over the last five years. According to the latest report from Anarock Research, Hyderabad and Bengaluru have emerged as the frontrunners in this upward trend, demonstrating the highest increases in property prices among the major cities.
The analysis, covering the period from 2019 to the first half of 2024, reveals that Hyderabad experienced the most substantial growth, with housing prices soaring by 64%. This was closely followed by Bengaluru, where prices increased by 57%. In contrast, Kolkata recorded the lowest price appreciation at 25%, while both the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) saw a rise of 48% in residential property prices.
The surge in housing prices has been particularly pronounced in the wake of the COVID-19 pandemic, with a marked acceleration observed over the last two years. This growth has been driven by robust demand and a substantial increase in new housing supply across these cities. As noted by the chairman of ANAROCK Group, the post-pandemic recovery phase has witnessed an exceptional upswing in property values, reflecting renewed confidence in the real estate market. Anarock Research has delved deeper into price trends across the top three micro-markets in each of the seven cities, focusing on areas with the highest volume of new supply in the past five years. Among these, Bagaluru in Bengaluru stands out, having recorded the most significant price increase, with an appreciation of 90% between 2019 and H1 2024. During this period, the average residential prices in Bagaluru jumped from INR 4,300 per square foot to approximately INR 8,151 per square foot.
This steep increase can be attributed to the substantial new supply of around 17,065 units in Bagaluru, predominantly catering to the mid and premium segments of the market. Over 94% of the new units launched in this locality were priced between INR 40 lakh and INR 1.5 crore, reflecting strong demand in these categories. In contrast, only 6% of the supply fell into the luxury segment, priced above INR 1.5 crore. Notably, there has been no new affordable housing supply in Bagaluru since 2019, underscoring a shift in market dynamics towards higher-end properties.
The report highlights a broader trend of rising housing prices across India’s major cities, driven by a combination of increasing demand, economic recovery, and strategic developments by real estate developers. As the market continues to evolve, stakeholders must keep a close eye on these trends to navigate the complexities of the post-pandemic real estate landscape effectively. With cities like Hyderabad and Bengaluru leading the charge in property price escalation, the real estate market in India’s top metropolitan areas is set for continued growth. However, the challenge remains to balance this growth with affordability and accessibility, ensuring that the housing market caters to a diverse range of buyers across different economic segments.
