33 percent average residential prices hike in 3 years in seven Indian cities

ANAROCK, a real estate consultancy firm, predicts that the average residential prices in the top seven cities of India will experience a surge of up to 33 percent within the next three years.

According to the report, Hyderabad’s Gachibowli experienced the most significant average price increase among the top seven cities’ key micro markets, reaching 33 percent between 2020 and the first 10 months of 2023. Following closely behind is Kondapur, with a rise of 31 percent, while Bengaluru’s Whitefield witnessed a 29 percent increase during this period. Additionally, Hyderabad’s Miyapur observed a notable hike of 28 percent.

The report indicates that during this three-year period, there was a significant surge in average prices in key areas of the Mumbai Metropolitan Region (MMR) and Delhi NCR. In Greater Noida West, which is part of the NCR, average prices have risen by 27 percent. Similarly, in MMR, the area of Lower Parel has experienced an appreciation of 21 percent in average prices.

According to Prashant Thakur, Regional Director and head of Research at ANAROCK Group, the end of October usually signifies the end of the festive season and the culmination of the year’s peak housing sales period. However, 2020 was a year of price stagnation and disappointment for most developers, with the exception of discounts. In contrast, 2023 presents a different scenario, with strong demand driving housing sales to a new peak across the top seven cities, surpassing the previous peak of 2014.

Prior to the pandemic year of 2020, residential prices in cities had mostly remained stable within a certain range. However, due to strong demand and rising input costs, there has been a notable increase in average housing prices in major micro markets across the top 7 cities. Thakur noted that the IT-driven cities of Hyderabad, Bengaluru, and Pune experienced the greatest surge in average prices among the top seven cities.

Furthermore, Thakur emphasized that Hyderabad presents a greater potential for price appreciation compared to Bengaluru’s IT/ITeS hubs due to the fact that prior to the COVID-19 pandemic, the average prices in Hyderabad were comparatively lower. As of October 2023, the average prices in Hyderabad’s prominent micro markets are nearly equivalent to Bengaluru’s thriving IT-driven residential areas.

In the meantime, the report reveals that Thanisandra main road and Sarjapur Road in Bengaluru experienced a 27 percent and 26 percent surge in average property prices, respectively. 

Similarly, Pune’s IT hubs Wagholi and Hinjewadi witnessed a 25 percent and 22 percent rise, respectively. The report highlights that micro-markets primarily driven by the IT/ITeS sector have observed the most significant average price appreciation.