Housing prices across India’s major metropolitan areas have experienced a remarkable surge, increasing by 44% over the past five years. A recent report from Anarock Research reveals that Hyderabad and Bengaluru are at the forefront of this trend, showcasing the highest property price increases among the country’s leading cities.
From 2019 to the first half of 2024, Hyderabad led the way with an impressive 64% increase in housing prices, closely followed by Bengaluru at 57%. In contrast, Kolkata registered the lowest growth at 25%, while both the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) experienced a more modest rise of 48%. This disparity in price appreciation underscores the unique dynamics influencing each city’s real estate landscape. The acceleration in housing prices has been particularly notable in the aftermath of the COVID-19 pandemic, with the past two years witnessing a significant upswing. This growth can be attributed to robust demand and an increase in new housing supply across these urban centres. As highlighted by the chairman of ANAROCK Group, the post-pandemic recovery phase has injected renewed confidence into the real estate market, resulting in a surge in property values.
Anarock’s report further examines price trends in the top three micro-markets of each city, focusing on areas with substantial new housing supply. Bagaluru in Bengaluru stands out as a prime example, boasting an astounding 90% price appreciation from 2019 to the first half of 2024. During this period, average residential prices in Bagaluru soared from ₹4,300 per square foot to approximately ₹8,151 per square foot. This substantial increase is largely due to the introduction of around 17,065 new units in Bagaluru, predominantly targeting the mid and premium market segments. Notably, over 94% of these newly launched units were priced between ₹40 lakh and ₹1.5 crore, reflecting the strong demand for housing in these price brackets. In stark contrast, only 6% of the supply consisted of luxury units priced above ₹1.5 crore, and there has been a notable absence of affordable housing developments in Bagaluru since 2019, signalling a shift towards higher-end properties.
The broader trend of rising housing prices across India’s top cities is driven by a mix of increasing demand, economic recovery, and strategic initiatives from real estate developers. As the market evolves, stakeholders must remain vigilant to effectively navigate the complexities of the post-pandemic real estate landscape. With Hyderabad and Bengaluru leading the charge, the trajectory of property prices in India’s metropolitan areas is set for continued growth. However, this growth comes with challenges. There is an urgent need to balance escalating property prices with affordability and accessibility to ensure that the housing market meets the diverse needs of buyers across various economic segments. The focus on higher-end properties, while beneficial for some, raises concerns about inclusivity in urban housing, emphasising the importance of sustainable development that caters to all demographics.
