Residential Property Prices Soar by 45% in India's Top Cities Despite Rising Supply - Anarock Report Highlights Significant Growth

Overview of Residential Property Price Growth

A recent report by real estate consultancy Anarock reveals that residential property prices across India’s top seven cities have surged by 45% over the past five years. This substantial increase is driven by strong demand and a significant influx of new supply, with certain micro markets witnessing price hikes of up to 90%.

Top Performing Micro Markets

Key areas such as Bengaluru’s Bagaluru, Hyderabad’s Kokapet, and Bengaluru’s Whitefield have emerged as the top performers in terms of price appreciation:

• Bagaluru, Bengaluru: Residential prices soared by 89% between 2019 and H1 2024, with the average price per square foot increasing from ₹4,300 in 2019 to ₹8,151 in H1 2024. During this period, Bagaluru saw the introduction of approximately 17,065 new residential units, with 94% of this supply falling within the ₹40 lakh-₹1.5 crore price range, covering mid and premium segments. The remaining 6% catered to the luxury segment.
• Kokapet, Hyderabad: Close on Bagaluru’s heels, Kokapet experienced an 89% overall price appreciation during the same period, marking it as a highly sought-after micro market.
• Whitefield, Bengaluru: Whitefield also saw substantial growth, with an 80% rise in residential prices, making it the third most active micro market in terms of price growth.
• Dwarka Expressway, NCR: Ranking fourth, Dwarka Expressway recorded a 79% price surge, with average residential prices climbing from ₹5,359 per square foot in 2019 to over ₹9,600 per square foot in H1 2024.

City-Wise Price Appreciation

The report highlights city-specific growth trends between 2019 and H1 2024: 

• Hyderabad: Led the way with a 64% increase in residential property prices.
• Bengaluru: Followed closely with a 57% rise.
• NCR and MMR: Both regions recorded a 48% price appreciation. 
• Kolkata: Saw the lowest price growth at 25%.

Supply Dynamics Across Major Cities

The top seven cities collectively introduced over 1,632,650 new residential units between 2019 and H1 2024. The Mumbai Metropolitan Region (MMR) led in terms of new supply, contributing 525,430 units, followed by Pune with over 295,550 units. Among the micro markets, MMR’s Dombivli was the most active, recording the highest new supply.

Post-Pandemic Acceleration in Housing Prices

Anuj Puri, Chairman of Anarock Group, noted that housing price growth accelerated significantly after the pandemic, particularly in the last two years. The top seven cities witnessed over 44% price appreciation during the five-year period, underscoring the robust demand and resilient growth in India’s residential real estate market.

Conclusion

The Anarock report illustrates a clear trend of rising residential property prices across India’s major cities, fueled by both strong demand and substantial new supply. Micro markets like Bagaluru, Kokapet, and Dwarka Expressway have emerged as key hotspots, reflecting the evolving dynamics of India’s real estate sector.