A new report has revealed that property prices in key micro-markets across India’s top seven cities have surged significantly between 2021 and 2024, outpacing rental growth. According to the latest data from Anarock, capital values in these areas increased by as much as 128%, while rental values grew at a comparatively slower rate.
Noida’s Sector 150 Leads in Capital Appreciation
The report highlights Noida’s Sector 150 as the top-performing micro-market, with property prices soaring 128% over the three-year period. However, rental values for a standard 1,000 sq ft 2BHK in the area increased by only 66%.
Similar trends were observed in other major cities such as Mumbai, Hyderabad, and Bengaluru, where capital appreciation exceeded rental growth:
- Mumbai’s Chembur saw property prices rise by 48%, while rental values increased by 42%.
- Mulund recorded a 43% growth in capital values, with rental appreciation at 29%.
- Hyderabad’s HITECH City and Gachibowli witnessed capital value growth of 62% and 78%, respectively, whereas rental growth stood at 54% and 62%.
- Bengaluru’s Thanisandra Main Road saw a 67% increase in property prices, with rental values growing by 62%.
Some Markets See Higher Rental Growth
While capital appreciation dominated most cities, a few locations, such as Pune, Kolkata, and Chennai, showed stronger rental growth compared to property price increases:
- Pune’s Hinjewadi experienced a 57% rise in rental values, while property prices increased by 37%.
- Kolkata’s EM Bypass saw a 51% jump in rental rates, with capital appreciation at 19%.
- Chennai’s Pallavaram recorded 44% rental growth, compared to a 21% increase in property values.
Expert Insights for Investors
According to Anuj Puri, Chairman of Anarock Group, investors looking for long-term capital appreciation should focus on locations with strong property price growth. On the other hand, those interested in rental income should target areas where rental values are rising steadily.
The report underscores the importance of understanding property price trends vs. rental growth when making real estate investment decisions. It also suggests that potential homebuyers carefully evaluate whether buying or renting makes more financial sense in a given market.
