Housing prices in Gachibowli, Hyderabad, jumped 33% in January-October of 2023 compared with the corresponding period in 2020, according to ANAROCK Research. It was the highest surge in housing prices among the key micro markets in the top seven cities, the report claimed. In Gachibowli, the average residential price was Rs 4,790 per sq ft in January-October 2020. In the corresponding period of 2023, the price had increased to Rs 6,355 per sq ft.
Kondapur in Hyderabad recorded a 31% rise in prices in this period — from Rs 4,650 per sq ft in October-end 2020 to Rs 6,090 per sq ft in October-end 2023, according to ANAROCK.
“Hyderabad has a higher scope of price appreciation because pre-Covid-19, the city’s average prices were relatively lower than in Bengaluru’s IT/ITeS hubs. In the first 10 months of 2023, the average prices in Hyderabad’s key micro markets were almost on a par with Bengaluru’s IT-led housing hotspots,” says Prashant Thakur, Regional Director & Head-Research, ANAROCK Group.
Pointing out the reasons behind surge in prices in micro-markets in Hyderabad, Prashant Rao, Managing Director, Poulomi Estates says, “In recent years, Hyderabad has experienced remarkable strides in infrastructure development, aligning it with other major metropolitan cities in India. This transformation has attracted both domestic and multinational companies, particularly in the IT sector, leading to a surge in economic activities. This positions real estate in Hyderabad not only as a compelling investment opportunity but also as an attractive prospect for end-users seeking to be part of the city’s flourishing growth story.”
With a 29% price hike in the three years, Whitefield in Bengaluru was third on the list. The locality’s average residential housing price rose from Rs 4,900 per sq ft in October 2020 to Rs 6,325 per sq ft in October 2023, the data showed. Thanisandra Main Road and Sarjapur Road in Bengaluru saw 27% and 26% hikes, respectively, in the average residential housing price, the data showed.
Pune’s IT hubs of Wagholi and Hinjewadi saw 25% & 22% increase, respectively.Among the top 7 cities, the IT-led cities of Hyderabad, Bengaluru and Pune saw the highest surge in prices, said Thakur.
| Average residential prices across key markets (Rs/sq ft) | ||||
| City | Micro market | 10M 2020 | 10M 2023 | % change in 3 yrs |
| Bengaluru | Whitefield | 4,900 | 6,325 | 29% |
| Thanisandra Main Rd | 5,200 | 6,615 | 27% | |
| Sarjapur Road | 5,870 | 7,425 | 26% | |
| Chennai | Perambur | 6,250 | 7,180 | 15% |
| Guduvanchery | 3,950 | 4,635 | 17% | |
| Perumbakkam | 4,390 | 5,240 | 19% | |
| Hyderabad | Gachibowli | 4,790 | 6,355 | 33% |
| Kondapur | 4,650 | 6,090 | 31% | |
| Miyapur | 4,250 | 5,420 | 28% | |
| Kolkata | Rajarhat | 4,360 | 5,200 | 19% |
| Joka | 3,435 | 4,275 | 24% | |
| EM Bypass | 6,800 | 7,710 | 13% | |
| MMR | Worli | 38,560 | 43,760 | 13% |
| Lower Parel | 34,000 | 41,290 | 21% | |
| Andheri | 20,600 | 24,460 | 19% | |
| NCR | Greater Noida West | 3,450 | 4,380 | 27% |
| Dwarka Expressway | 5,359 | 6,410 | 20% | |
| New Gurugram | 6,075 | 7,110 | 17% | |
| Raj Nagar Ext. | 3,260 | 3,950 | 21% | |
| Sector-150 (Noida) | 5,100 | 6,380 | 25% | |
| Pune | Wagholi | 4,820 | 6,005 | 25% |
| Hinjewadi | 5,580 | 6,835 | 22% | |
| Wakad | 6,575 | 7,795 | 19% | |
Source: ANAROCK Research
(Note: Locations selected on the basis of real estate activity seen in terms of both sales and new launches.)
The top three localities that have witnessed the highest average price hike in the National Capital Region (NCR) in the three years (above-mentioned period) are Greater Noida West, Sector 150 (Noida), and Raj Nagar Extension (Ghaziabad). In Greater Noida West, the average residential housing prices increased by 27% in the three-year period. The average housing price hike stood at 25% and 21% in Sector 150 (Noida) and Raj Nagar Extension (Ghaziabad) in the NCR region in the same time, the data said.
The top three micro-markets in the Mumbai Metropolitan Region (MMR) that have witnessed high price rises are Lower Parel, Andheri, and Worli with 21%, 19%, and 13% increases, respectively. Chennai’s prominent localities for price rises are Perumbakkam (19%), Guduvanchery (17%), and Perambur (15%). Kolkata’s top three prominent micro-markets that recorded high price jumps in average housing prices in the mentioned three-year period are Joka, Rajarhat, and EM Bypass, with a surge of 24%, 19%, and 13%, respectively.
Commenting on the price hike, Ravi Aggarwal, Co-founder & Managing Director of Signature Global (India) Ltd, said, “Property prices have surged in the last few years, driven by various factors such as increased input and construction costs, rising land prices, and heightened demand. Moreover, there is a noticeable shift in homebuyer preferences towards larger homes with enhanced amenities, contributing to the upward trajectory of prices. Despite these increases, the industry has successfully absorbed the higher costs, and demand remains substantial.”
“The end of October, marking the end of the festive season, typically denotes the culmination of the year’s peak housing sales period. Barring discounts, 2020 was a year of price stagnation and a year most developers would prefer to forget. The scenario in 2023 is markedly different. Backed by strong demand, housing sales across the top 7 cities have created a new peak this year with sales far exceeding the previous peak of 2014. Led by both robust demand and increased input costs, there has been a significant surge in average housing prices across key micro markets in the top 7 cities,” Thakur added.
