Property prices in this area of ​​Bengaluru increased by 90% in 5 years; How much have housing prices risen in your city?

Residential property prices have soared in major Indian cities over the past five years, driven by robust demand and a surge in new supply, according to a recent report by ANAROCK Research. Among the localities shortlisted by the real estate consultant, Bengaluru’s Bagaluru area emerged as the favourite, witnessing a staggering 94% rise in residential prices between 2019 and the first half of 2024. Average property prices in this area jumped from Rs 4,300 per sq ft in 2019 to around Rs 8,151 per sq ft in H1 2024. During this period, around 17,065 new units were launched in Bagaluru, predominantly in the mid and premium segments – Rs 40 lakh to 1, 5 crores. Notably, there were no new affordable supplies in this locality, says Anuj Puri, president of Anarock Group.

“Bagaluru’s transformation reflects a growing preference for premium living amid increasing urbanization and economic growth. With demand outstripping supply, it is clear why developers are focusing on higher-end offerings,” adds Puri .

Hyderabad’s Kokapet followed closely with a price appreciation of 89% over the five-year period. The average residential price in this micro-market increased from Rs 4,750 per sq ft in 2019 to Rs 9,000 per sq ft in H1 2024, driven by approximately 12,920 new units. Interestingly, more than half (52%) of the new offering fell in the ultra-luxury category, priced above Rs 2.5 million, indicating a trend towards luxury living.

With an 80% increase in average residential property prices, Bengaluru’s Whitefield ranked third. The median property price increased from Rs 4,765 per sq ft in 2019 to Rs 8,600 per sq ft in H1 2024 in the micro market. A total of 18,600 units were launched in this area, of which 66% were categorized into the medium and premium segments.

According to the report, Dwarka Expressway of NCR (National Capital Region) ranked fourth. There was a 79% increase in residential property prices. Median house prices in this area increased from Rs 5,359 per square foot in 2019 to over Rs 9,600 per square foot in H12024.

Property price rise in India in the last five years

Source: ANAROCK Research

Bengaluru’s Sarjapur Road came fifth with a price increase of 58%. Average prices here increased from Rs 5,870 per sq ft in 2019 to Rs 9,300 per sq ft in H1 2024.

Hyderabad’s Bachupally ranked sixth with average property prices increasing by 57% in the period – from Rs 3,690 per sq ft in 2019 to over Rs 5,800 per sq ft in H1 2024. Hyderabad’s Tellapur ranked seventh, with average property prices increasing by 53%. from Rs 4,819 per sq ft in 2019 to Rs 7,350 per sq ft in H1 2024.

It is closely followed by MMR’s Panvel, which secured the eighth position, witnessing a 50% rise in property prices during the same period. Prices here rose from Rs 5,520 per sq ft in 2019 to Rs 8,300 per sq ft in H1 2024.

NCR’s New Gurugram, which is ranked ninth, recorded a 48% rise in average property prices, which rose from Rs 6,100 per sq ft in 2019 to Rs 9,000 per sq ft in H1 2024.

Lastly, MMR’s Dombivli saw a 40% rise in average prices, with house prices rising from Rs 6,625 per sq ft in 2019 to Rs 9,300 per sq ft in H1 2024.

Puri explains: “The general belief that greater supply restricts price growth is not always applicable. Many active residential micromarkets have bucked this trend. For example, Greater Noida West, despite significant new supply, saw a notable price appreciation of 129%.”

As cities continue to evolve and attract a wide range of buyers, including professionals and investors, demand for housing remains strong. With increasing urbanization and the continued launch of new projects, the trajectory of real estate prices appears poised for sustained growth, creating opportunities and challenges for both potential buyers and developers.

In conclusion, as the real estate market adapts to post-pandemic realities, the balance between supply and demand will be crucial in shaping the future residential real estate landscape in major cities in India.