It is no secret that real estate prices in India have been on an upward trajectory over the last few years. However, did you know that if you presently own property in specific regions in India, you might end up with more returns on your property at other places?
This is because, at present, properties in some pockets of the country are witnessing substantial price growth, as compared to others. On the other hand, the rental yields in some areas have appreciated very sharply.
The latest data by ANAROCK property consultants notes that properties in Delhi NCR’s Noida, particularly Sector 150, saw their capital value rise by a towering 128% between 2021 and 2024. In contrast, the monthly rental yields for a standard 1,000 square feet (2 BHK) in Noida Sector 150 grew only by 66%.
As of 2021 end, the per square feet price in Noida Sector 150 stood at Rs 5,700, which ballooned to Rs 13,000 by the end of 2024.
Similarly, the capital, or total value, of real estate in Hyderabad’s Gachibowli appreciated by 78% between 2021 and 2024. From a per square feet price of Rs 5,010 in 2021, property prices in Gachibowli jumped to Rs 8,900/sq feet by the end of last year.
According to Vishal Jumani, Joint Managing Director, Supreme Universal, Hyderabad, with its thriving IT sector and business-friendly policies, has witnessed about a 10-12% annual increase in property prices.Which other parts of the country have been seeing rapid growth in property prices? Where are monthly rental yields growing more swiftly, as opposed to the property’s intrinsic value? We break it down for you.
Which markets make it more attractive to invest in property for sale?
In some markets of Delhi NCR, like Sohna Road, the capital value, or the price that a property would sell for in the current market, far exceeds the rental value they would yield. The capital value of properties on Sohna Road appreciated by 59%, as compared to their rental value, which only grew by 47% between 2021 and 2024.
As of 2021, real estate prices in Sohna Road stood at Rs 6,600/sq feet, which burgeoned to Rs 10,500/sq feet by the end of 2024.
According to Kirthi Chilukuri, Founder & Managing Director, Stonecraft Group, emerging areas such as Noida and Sohna Road in Delhi NCR also exhibit strong potential, driven by excellent connectivity, infrastructural upgrades, and increasing interest from both end-users and investors. “These locations are becoming hotbeds for appreciation due to planned developments, strategic positioning, and a strong influx of demand. Real estate in these areas is not just an asset but a gateway to future value creation,” he adds.
Another area in Hyderabad, HITECH City, saw property value jump by 62% between 2021 and 2024. During the same period, rental yields here only increased by 54%.
Chembur & Mulund in MMR (Mumbai Metropolitan Region) also saw higher growth in property’s capital values. In Chembur, property values rose by 48%, as opposed to 42% growth in rental yields. Similarly, in Mulund, where property value rose by 42% during the three-year period between 2021-2024, monthly rental yields inched up only 29%.
Bengaluru’s Thanisandra Main Rd area also saw a steep rise in property value at 67%, as compared to a 62% rise in monthly rental yields. This means that if you would have purchased a property here in 2021 at Rs 6,050/sq feet, its present value would be around Rs 9,850/sq feet by 2024-end.
The lowest rise in property value happened in Kolkata’s EM Bypass, where prices grew just 19% (from Rs 7,000/sq feet in 2021 to Rs 8350/sq feet in 2024) in 3 years.
| Avg. Capital Values (Rs/Sq. Ft.) vs Avg. Monthly Rentals Growth (Between 2021-end and 2024-end) | |||
| Cities | Micro Markets | % Change (Capital Value) | % Change (Monthly rental growth) |
| Bengaluru | Sarjapur Rd | 63% | 76% |
| Thanisandra Main Rd | 67% | 62% | |
| Hyderabad | HITECH City | 62% | 54% |
| Gachibowli | 78% | 62% | |
| Pune | Hinjewadi | 37% | 57% |
| Wagholi | 37% | 65% | |
| NCR | Sohna Road | 59% | 47% |
| Sector-150 (Noida) | 128% | 66% | |
| MMR | Chembur | 48% | 42% |
| Mulund | 43% | 29% | |
| Kolkata | EM Bypass | 19% | 51% |
| Rajarhat | 32% | 37% | |
| Chennai | Perambur | 23% | 36% |
| Pallavaram | 21% | 44% | |
Source: ANAROCK Research
Rent in all cases assumed for 1,000 square feet (2 BHK)
Which markets make it more attractive to invest in property for rent?
Pune scores big in terms of properties where monthly rental yields have appreciated far more than their capital value. In Pune’s Hinjewadi, while real estate value only grew 37% between 2021 and 2024, monthly rental yields inched by as much as 57%. Likewise, Wagholi in Pune saw rental yields grow by 65% between 2021 and 2024, as opposed to just a 37% rise in the intrinsic value of property located in the area.
As Jumani notes, “Pune, a key manufacturing and IT hub, has recorded a 9% rise in residential property prices, with Hinjewadi and Baner witnessing the highest demand due to their proximity to IT hubs and strong social infrastructure. Baner, known for its upscale projects and access to the Mumbai-Pune Expressway, has seen property prices appreciate by 9% annually. Ongoing infrastructure projects like the Pune Metro are set to further boost property values, with Hinjewadi historically experiencing an average property appreciation of 8% per annum.
In Hinjewadi, monthly rentals rose from Rs 17,800 at the end of 2021, to Rs 28,000 by the end of last 2024.
Along with impressive capital value growth, Bengaluru’s Sarjapur also registered solid monthly rental growth. From Rs 21,000 as rent for a 2 BHK at the end of 2021, rents in Sarjapur jumped 76% to Rs 36,900 by the end of 2024.
Mumbai’s Mulund saw the lowest monthly rental growth at 29%, between 2021 and 2024. From monthly rentals of Rs 39,500 in 2021, the rent rose just 29% to Rs 51,000 by 2024-end.
