Bengaluru and Hyderabad Lead India's Real Estate Boom with Unprecedented Home Price Surge
The country's two major IT hubs, Bengaluru and Hyderabad, are experiencing an unprecedented surge in home prices, driven by growing demand for Indian IT services and professionals.
Real EstateBengaluruHyderabadHome PricesIndian It ServicesReal Estate MumbaiAug 30, 2024
Data shows that, over the last five years, home prices in key locations of Bengaluru and Hyderabad have surged by as much as 90%. For instance, Bagaluru—a suburb in the northern tip of Bengaluru near the international airport—has seen home prices rise by 90% between 2019 and mid-2024.According to experts, improved connectivity in the region, with the airport metro line nearing completion, has contributed to the surge in demand for the locality. Additionally, many new homebuyers now seek larger homes with ample greenery away from the city center, further driving demand.
Bagaluru has recorded the steepest hike in average home prices. “With new supply of approximately 17,065 units during this period, average residential prices in Bagaluru jumped from Rs 4,300 per sq. ft. in 2019 to approximately Rs 8,151 per sq. ft. in H1 2024,” says Anuj Puri, Chairman of Anarock Group.In Hyderabad’s Kokapet, the situation is similar. The commercial and residential hub in the west of Hyderabad, which includes a special economic zone, is currently one of the most sought-after locations in the state.
Average home prices have jumped 89% since 2019, according to data from Anarock Research. The area saw close to 12,920 units of new supply during this period, with prices rising from Rs 4,750 per sq. ft. in 2019 to Rs 9,000 per sq. ft. in H1 2024.Whitefield in Bengaluru follows closely, having recorded an 80% rise in home prices over the last five years.
While most regions reporting steep rises in home prices are located in Bengaluru and Hyderabad, the Delhi-NCR market has also made its presence felt with two locations in HaryanaPanvel near Mumbai has also been witnessing significant activity lately. Home prices in the region have surged by 50% over the past five years as metro lines extend to Navi Mumbai, opening up new micro-markets for real estate developers.Housing price growth accelerated after the pandemic, particularly over the last two years,” says Puri. “According to our data, the top seven cities collectively saw over 44% price appreciation in the last five years.
Frequently Asked Questions
What is driving the surge in home prices in Bengaluru and Hyderabad?
The growing demand for Indian IT services and professionals, especially after the COVID-19 pandemic, has significantly increased the demand for new homes in these two metros, pushing prices up substantially.
Which location has seen the steepest hike in average home prices?
Bagaluru, a suburb in the northern tip of Bengaluru near the international airport, has seen home prices rise by 90% between 2019 and mid-2024.
What is the current situation in Hyderabad's Kokapet?
The commercial and residential hub in the west of Hyderabad, which includes a special economic zone, is currently one of the most sought-after locations in the state, with average home prices jumping 89% since 2019.
How has the Delhi-NCR market performed in terms of home price growth?
The Delhi-NCR market has also made its presence felt with two locations in Haryana, with the Dwarka Expressway region ranking fourth in terms of price growth, and New Gurugram seeing a 48% increase in home prices.
What is the outlook for the Indian real estate market?
According to Anarock Group, the top seven cities collectively saw over 44% price appreciation in the last five years, with Hyderabad recording the highest jump of 64% between 2019 and H1 2024.
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