Five-Year Price Surge – Top seven cities see 45% hike, some markets over 90%

Team L&M

Residential prices have been rising significantly across cities in the last few years, amid buoyant demand and increased new supply. ANAROCK Research has analysed the price trends in the top three micro-markets of the top seven cities, based on maximum new supply seen in the last five years. Among the shortlisted localities, Bengaluru’s Bagaluru recorded the highest price appreciation of 90 per cent between 2019 and H1 2024.

“With new supply of approx. 17,065 units in the period, the average residential prices at Bagaluru jumped up from INR 4,300 per sq. ft. in 2019 to approx. INR 8,151 per sq. ft. in H1 2024,” says Anuj Puri, Chairman – ANAROCK Group. “A deeper dive reveals that of the total new supply launched in this micro market since 2019, over 94 per cent was in the price bracket of INR 40 lakh to INR 1.5 Cr – the mid and premium segments. The remaining six per cent was in the luxury segment priced >INR 1.5 Cr. Tellingly, there was no new affordable supply in this locality.”

Hyderabad’s Kokapet came close behind with overall price appreciation of 89 per cent in this period. The area saw approx. 12,920 units of new supply in the period, and prices rose from INR 4,750 per sq. ft. in 2019 to INR 9,000 per sq. ft. in H1 2024. A whopping 52 per cent of the new launch share was in the ultra-luxury category priced >INR 2.5 Cr, followed by a cumulative 30% in the mid and premium segments. The remaining 19% supply was in the luxury price bracket of INR 1.5 – 2.5 Cr.

Bengaluru’s Whitefield ranks third, recording an 80 per cent rise in residential prices in the period. The area witnessed saw approx. 18,600 units launched between 2019 and H1 2024 – over 66 per cent was in the mid and premium budget category, and the remaining 34 per cent was in the luxury homes segment. Average prices here increased to INR 8,600 per sq. ft. in H1 2024 from INR 4,765 per sq. ft. in 2019.

• NCR’s Dwarka Expressway ranks fourth with a 79 per cent price appreciation. Avg. prices increased from INR 5,359 per sq. ft. in 2019 to over INR 9,600 per sq. ft. in H1 2024.
• Bengaluru’s Sarjapur Road clocks in at five with a 58 per cent price jump. Avg. prices here rose from INR 5,870 per sq. ft. in 2019 to INR 9,300 per sq. ft. in H1 2024.
• Hyderabad’s Bachupally came in sixth with avg. property prices increasing by 57 per cent in the period – from INR 3,690 per sq. ft. in 2019 to over INR 5,800 per sq. ft. in H1 2024.
• Hyderabad’s Tellapur ranks seventh with a 53 per cent jump in avg. property prices in this period – from INR 4,819 per sq. ft. in 2019 to INR 7,350 per sq. ft. in H1 2024.
• MMR’s Panvel ranks eighth with a 50 per cent price rise in the period – from INR 5,520 per sq. ft. in 2019 to INR 8,300 per sq. ft. in H1 2024.
• NCR’s New Gurugram – in the ninth spot – saw avg. property prices rise by 48 per cent – to INR 9,000per sq. ft. in H1 2024 from INR 6,100 per sq. ft. in 2019.
• MMR’s Dombivli saw a 40 per cent price rise in this period – from INR 6,625 per sq. ft. in 2019 to INR 9,300 per sq. ft. in H1 2024.

Source: ANAROCK Research

“Housing price growth accelerated after the pandemic, particularly if we consider the last two years,” says Puri. “As per our data, the top seven cities collectively saw over 44 per cent of price appreciation in the last five years. At a city level, Hyderabad recorded the highest jump of 64 per cent between 2019 and H1 2024, followed by Bengaluru with a 57 per cent increase. The lowest price growth of 25 per cent was seen in Kolkata. NCR and MMR both witnessed a 48 per cent price appreciation each in this period.”

The commonly held notion that high new supply in a market tends to curtail price growth is not entirely true; many of these active residential micro-markets have seen significant price appreciation over the last five years. For instance, Greater Noida West in NCR – which has the fifth highest supply in the region in last five years – saw a whopping 129 per cent price appreciation.

Top 10 Micro-markets for New Supply – MMR’s Dombivli Leads

The past five years have seen a massive infusion of new supply across the top seven cities – more than 16,32,650 units between 2019 and H1 2024. City-wise, MMR witnessed the highest supply with approx. 5,25,430 units in this period, followed by Pune with over 2,95,550 units. In terms of micro-markets, MMR’s Dombivli remained the most active market in this period, with the highest new supply.

• Dombivli (MMR) ranks first on the list of the most active residential micro-markets in terms of the number of new units launched in this five-year period. It saw more than 44,990 new unit launched since 2019, with average property prices hovering around INR 9,300 per sq. ft. on built-up area as of H1 2024 – a 40 per cent increase. At least 77 per cent of the new supply was in the INR 40 lakh to INR 1.5 Cr price bracket, and the remaining 23 per cent in the affordable category.
• Sarjapur Road (Bengaluru)  saw the second highest new supply of approx. 36,150 units, of which 74 per cent was in the mid and premium segments and 18 per cent in the luxury category. Just eight per cent was affordable housing.
• Panvel (MMR) saw 34,400 units added in the period, of which 64 per cent was in the INR 40 lakh to INR 1.5 Cr price bracket, 32 per cent in the affordable segment, and three per cent within the INR 1.5 Cr to INR 2.5 Cr price band.
• Thane West (MMR) ranks fourth with approx. 34,020 new units added with the average price at INR 13,500 per sq. ft. as of H1 2024 (from INR 10,317 per sq. ft. in 2019) – a 34 per cent price hike. Of the total new supply here, 77 per cent was in the mid and premium segments, 21 per cent in the >INR 1.5 Cr bracket, and just two per cent in the affordable category.
• Greater Faridabad (NCR) came in fifth with approx. 32,740 units launched in the period. At least 56 per cent was in the affordable category, 24 per cent in the luxury price bracket, and the remaining 20 per cent in the mid and premium segments. Average property rates here rose from INR 3,500 in 2019 to INR 4,700 per sq. ft. in H1 2024 – a 34 per cent jump.
• Hinjewadi (Pune) came in sixth with new supply of 25,140 units between 2019 to H1 2024; a whopping 95 per cent was in the mid and premium segments (INR 40 lakh to INR 1.5 Cr), just four per cent in the affordable segment, and one per cent in the luxury category. The area has seen prices appreciate by 39 per cent in the last five years.
• New Gurugram (NCR), clocking in seventh, saw approx. 21,125 units launched in the period – 52 per cent in the affordable category, 29 per cent in the luxury segment, and 19% in the mid and premium segments. Average prices here rose by 48 per cent in the last five years – from INR 6,100 per sq. ft. in 2019 to INR 9,000 per sq. ft. in H1 2024.
• Dwarka Expressway (NCR) ranks eighth with approx. 20,250 units launched between 2019 to H1 2024, of which over 55 per cent was in the affordable category priced <INR 40 lakh, and 33 per cent in the luxury segment.
• Tellapur (Hyderabad) ranks ninth with approx. 18,960 new units added and average prices at INR 7,350 per sq. ft. as of H1 2024, up from INR 4,819 per sq. ft. in 2019 – rising by 53 per cent . Of the total new supply, 66 per cent was in the mid and premium segments, followed by 34 per cent in >INR 1.5 Cr bracket.
• Whitefield (Bengaluru) ranks 10^th with approx. 18,600 units launched, of which 66 per cent was in the mid and premium segments and 34 per cent in the luxury category. There was no new affordable housing supply here.