India’s leading technology hubs, Bengaluru and Hyderabad, are currently witnessing an extraordinary surge in residential real estate prices, driven largely by the burgeoning demand for new homes. This growth reflects the expanding Indian IT sector and the post-pandemic shift in buyer preferences towards larger, greener living spaces situated away from congested city centres.
Recent data indicates that property prices in key locales within these two cities have escalated by as much as 90% over the past five years. In Bengaluru, the suburb of Bagaluru, conveniently located near the international airport, has experienced the most significant appreciation in property values, rising by 90% from 2019 to mid-2024. The imminent completion of the airport metro line has further enhanced connectivity, fuelling demand. Moreover, buyers increasingly desire more spacious homes with ample greenery, which has catalysed this trend in Bagaluru. During this period, the suburb witnessed the introduction of approximately 17,065 new residential units. The average price surged from ₹4,300 per square foot in 2019 to around ₹8,151 per square foot by the first half of 2024. Notably, 94% of this new supply falls within the mid and premium segments, priced between ₹40 lakh and ₹1.5 crore, while only 6% is classified as luxury homes above ₹1.5 crore. Alarmingly, there has been no increase in affordable housing in Bagaluru.
Hyderabad’s Kokapet, a key commercial and residential hub in the city’s western region, mirrors this upward trend. According to Anarock Research, average home prices in Kokapet have surged by 89% since 2019, with the area witnessing a new supply of approximately 12,920 units. Prices climbed from ₹4,750 per square foot in 2019 to ₹9,000 per square foot in the first half of 2024. In this case, the ultra-luxury category, priced above ₹2.5 crore, constituted 52% of new launches, with mid and premium segments making up 30%, and luxury homes priced between ₹1.5 and ₹2.5 crore comprising the remaining 19%. Other areas in Bengaluru, like Whitefield, have also seen substantial price increases, recording an 80% rise in home values over the last five years. Beyond these hubs, the Delhi-NCR market shows signs of life, with Dwarka Expressway in Haryana witnessing a 79% increase, while New Gurugram has experienced a 48% surge in property prices. In Maharashtra, Panvel, located near Mumbai, has witnessed a 50% increase in real estate prices over the past five years, driven in part by the expansion of metro lines to Navi Mumbai.
The overall residential market across India’s top seven cities has experienced an average price appreciation of 44% in the last five years, with Hyderabad leading at 64% growth, followed closely 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 experienced a 48% increase in residential property prices during the same period. As the real estate landscape evolves, sustainability emerges as a critical consideration. The shift towards larger, greener homes suggests a growing awareness among buyers regarding environmental impacts. Developers are increasingly expected to incorporate sustainable practices, such as energy-efficient designs and eco-friendly materials, into their projects. This focus on sustainability not only aligns with global trends but also enhances the long-term viability of developments in Bengaluru and Hyderabad, making them more attractive to environmentally conscious buyers.
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