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India's Housing Market Booms: Property Prices Nearly Double Since 2021
India's Housing Market Booms: Property Prices Nearly Double Since 2021

News18

time3 days ago

  • Business
  • News18

India's Housing Market Booms: Property Prices Nearly Double Since 2021

Between 2021 and mid-2025, India's housing micro markets saw gains due to employment demand and infrastructure upgrades, says ANAROCK Research. News18 Between the end of 2021 and mid-2025, India's most dynamic housing micro markets have delivered remarkable gains for both homeowners and investors, finds latest ANAROCK Research data. In some areas, property prices have nearly doubled; in others, rents have climbed at a pace that outstripped inflation by a wide margin. The twin forces driving this surge – strong employment-driven demand and steady infrastructure upgrades — have given rise to markets where both capital appreciation and rental values growth are driven by location dynamics, connectivity, and economic momentum. For a broad overview, ANAROCK has studied capital appreciation and rental value growth trends across 14 of the most active (in terms of supply and sales) micro markets in Bengaluru, Hyderabad, Pune, NCR, Mumbai Metropolitan Region (MMR), Kolkata, and Chennai – and unpacked the reasons behind their performance. Anuj Puri, Chairman – ANAROCK Group, says, 'The recovery that began in 2021 was driven by pent-up demand, record-low interest rates, and a structural shift toward homeownership after the pandemic. In the early recovery years, annual rental increases of 12–24% were common in prime employment hubs. By H1 2025, rental growth had moderated nationally to 7–9% — still ahead of consumer inflation, but a lot more sustainable." 'Capital values followed a similar trajectory of rapid appreciation between 2021-2023, followed by steadier gains as new supply hit the market and buyers became more price sensitive," says Puri. 'Notably, infrastructure-led markets (those benefiting from new metro lines, expressways, or new planned tech hubs) continued to defy this cooling trend." Bengaluru: Sarjapur Road and Thanisandra In India's tech capital, two pockets have outperformed even the city's robust average growth. – Sarjapur Road has long been part of Bengaluru's eastern IT corridor, but the promise of the Red Line Namma Metro—connecting Hebbal to Sarjapur—has fuelled a fresh wave of interest. Between 2021 and Q2 2025, property prices here jumped 79%, while average 2BHK rents climbed 81% to ₹38,000 a month. – Thanisandra Main Road, in the north, has mirrored this trajectory with capital gains of 81% and rents up 65%. Its proximity to Manyata Tech Park and improving road connectivity have made it a magnet for mid-to-upper-income IT professionals. Both areas also benefit from constrained land availability, which has kept the market tight, and speculative buzz around projects like the proposed 'Swift City' mega-tech hub in Sarjapur. Hyderabad's western corridor has cemented its place as one of India's most resilient real estate sub-markets. – HITECH City, the city's tech heart, recorded a 70% rise in property values and a 58% jump in rents over the past three and a half years. – Gachibowli, just next door, surged even more—capital values up 87%, rents up 66%. Its appeal lies in a concentration of multinational campuses, international schools, and premium residential complexes. Even as national rental inflation has eased, these two pockets continue to post double-digit annual increases thanks to unrelenting demand from a growing IT workforce and the scarcity of ready-to-move-in apartments. Pune: Hinjewadi and Wagholi Pune's performance underscores a familiar pattern: a mature IT hub supported by a fast-growing affordable fringe. – Hinjewadi, home to the city's largest IT park, saw prices rise 40% and rents climb 60% since 2021. While rental growth has slowed since late 2024, demand remains stable thanks to a steady influx of young professionals. – Wagholi, further out but well-connected to the city via the Nagar Road corridor, matched Hinjewadi's capital gains but outperformed on rentals with a 69% increase. Its relatively lower buy-in cost has made it a preferred choice for first-time investors seeking yield. NCR: Sohna Road and Noida Sector-150 The National Capital Region's story has two distinct threads – established corporate corridors and new-age investor magnets. – Sohna Road in Gurugram blends both worlds: strong corporate leasing nearby and improving connectivity via the Delhi–Mumbai Expressway linkages. Prices are up 74% since 2021, while rents have climbed 50%. – Sector-150 in Noida is the standout nationally. Its property values have soared 139% in just over three and half years – the fastest among all micro markets in this study – fuelled by new township projects, greenfield planning, and investor enthusiasm. Rents here have also surged 71%, reflecting demand from both working professionals and end-users drawn by its planned open spaces and sports facilities. Mumbai Metropolitan Region: Chembur and Mulund In land-starved Mumbai, price growth in suburbs with improved transport access has been striking. – Chembur, once a relatively under-the-radar suburb, has been transformed by the Eastern Freeway and Metro Line extensions. Prices are up 53%, and rents have grown 46%. – Mulund, a gateway between Mumbai and Thane, has seen similar capital gains (50%) but slower rental growth (32%), partly due to higher starting rental levels. Large-format apartments and better suburban amenities have attracted families upgrading from more crowded city neighbourhoods. Kolkata: EM Bypass and Rajarhat Kolkata's growth story has been steadier – but still rewarding for long-term investors. – EM Bypass benefits from proximity to the central business district and major arterial roads, pushing capital values up 25% and rents up 53%. – Rajarhat, a planned township to the east, has seen stronger capital appreciation at 37%, driven by new infrastructure and corporate presence, alongside 40% rental growth. While not as spectacular as NCR or Bengaluru, Kolkata's trajectory underscores the value of planned growth and connectivity. Chennai: Perambur and Pallavam Chennai's two highlighted markets—Perambur in the north and Pallavaram in the south—both owe their performance to excellent transit links. – Perambur has seen prices rise 26% and rents 39% since 2021, supported by suburban rail and metro access. – Pallavaram, near the airport and GST Road, posted a 24% price gain and 46% rent increase, appealing to both airline staff and IT professionals working in the nearby OMR corridor. 'Looking ahead to 2026, we expect average housing price growth to range between around 6–7%, with rents likely to rise 7–10% – both outpacing inflation," says Anuj Puri. 'Micro markets tied to major infrastructure completions (such as metro lines in Bengaluru and Mumbai, expressways in NCR, and IT park expansions in Hyderabad and Pune) are best placed to sustain above-average gains." top videos View all In India's real estate market, growth follows infrastructure, and rental resilience follows jobs. For investors, identifying the next wave of connectivity and employment corridors could be the difference between average returns and exceptional ones. About the Author Business Desk A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover More Click here to add News18 as your preferred news source on Google, Stay updated with all the latest business news, including market trends, stock updates, tax, IPO, banking finance, real estate, savings and investments. Get in-depth analysis, expert opinions, and real-time updates. Also Download the News18 App to stay updated. view comments Location : New Delhi, India, India First Published: August 16, 2025, 14:00 IST News business » real-estate India's Housing Market Booms: Property Prices Nearly Double Since 2021 Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

This Sector In Noida Sees 139% Surge In Home Prices, Highest In India Since 2021
This Sector In Noida Sees 139% Surge In Home Prices, Highest In India Since 2021

News18

time5 days ago

  • Business
  • News18

This Sector In Noida Sees 139% Surge In Home Prices, Highest In India Since 2021

A sector in Noida has emerged as the centre of India's biggest housing market boom in the post-pandemic real estate scene, with an average capital value of Rs 13,600 per sq ft. A Noida sector is in the spotlight for being the centre of the biggest housing market boom in post-pandemic India. Since 2021, Noida's Sector 150 has seen an incredible jump in capital value, with home prices enjoying a surge of 139 per cent. Sector 150 of the posh city in Uttar Pradesh is a hub of premium townships, where the average capital value has reached Rs 13,600 per sq ft and there has been a 71 per cent spike in average monthly rents to Rs 27,300, according to the research by property consultant ANAROCK. It is rated as the steepest property gains among 14 micro markets tracked across seven major cities in India. The rapid rise is understandably fuelled by many large-scale integrated projects and strong investor appetite in Noida. The high-end property rates of the place highlight how selected pockets inside the NCR region are helping India grow into a real estate powerhouse. 'Across the 14 high-performing micro markets analysed by ANAROCK, capital values rose between 24 per cent and 139 per cent, while rentals surged 32 per cent–81 per cent, between 2021 and Q2 of 2025 — far outpacing both wage growth and inflation," stated a report by Moneycontrol. After Noida's Sector 150, Bengaluru has emerged as the second biggest real estate winner. Property rates for the city's Sarjapur Road alone have climbed up to 79 per cent, with an additional jump of 81 per cent in rents. According to the data, Thanisandra Main Road has witnessed an even bigger jump of 81 per cent in property gains and 65 per cent in rental income. Analysts have attributed this incredible jump to the mix of post-pandemic demand resurgence, infrastructure upgrades and also a steady inflow of investors betting on sustained appreciation. Also reiterated here is the historic trend of connectivity and jobs driving both prices and rent growth and real estate consistently outperforming other markets, with these premium cities boasting of new metro lines, expressways and airport proximity. 'Capital values followed a trajectory of rapid appreciation between 2021 and 2023, followed by steadier gains as new supply hit the market and buyers became more price-sensitive. Notably, infrastructure-led markets (those benefiting from new metro lines, expressways, or new planned tech hubs) continued to defy this cooling trend," said Anuj Puri, Chairman, ANAROCK Group, underlining the post-pandemic recovery that gained steam in 2021 through pent-up demand, record-low interest rates and structural shift towards homeownership. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.

Real estate winners: How infrastructure and jobs drove India's top-performing micro markets
Real estate winners: How infrastructure and jobs drove India's top-performing micro markets

Time of India

time5 days ago

  • Business
  • Time of India

Real estate winners: How infrastructure and jobs drove India's top-performing micro markets

Between the end of 2021 and mid-2025, India's most dynamic housing micro markets have delivered stellar returns for both homeowners and investors , according to new ANAROCK Research. In some areas, property prices have nearly doubled, while in others, rental growth has far outpaced inflation. This surge has been driven by two key forces — robust employment-led demand and sustained infrastructure upgrades . by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo Together, these factors have created high-performing pockets where location dynamics, connectivity, and economic momentum fuel both capital appreciation and rental resilience. ANAROCK tracked 14 of the country's most active residential micro markets across Bengaluru, Hyderabad, Pune, NCR, MMR, Kolkata, and Chennai. The data reveals striking trends: Noida's Sector-150 leads the nation with a 139% price surge, supported by greenfield planning, township projects, and strong investor demand. Bengaluru's Sarjapur Road and Thanisandra Main Road posted 79–81% price gains, boosted by metro expansion and proximity to tech hubs. Hyderabad's Gachibowli saw an 87% jump in capital values, with strong rental growth sustained by a deep IT employment base. Nationally, the post-pandemic recovery from 2021 to 2023 was marked by rapid rental increases of 12–24% annually in prime job hubs. By H1 2025, rental growth had moderated to a more sustainable 7–9%, still above inflation. Live Events Infrastructure-led markets — from metro-linked suburbs to expressway corridors — continued to outperform, even as overall momentum eased. Outlook 2026: Growth follows infrastructure Looking ahead, ANAROCK projects average housing prices to grow 6–7% annually through 2026, with rents expected to rise 7–10%. Both are likely to outpace inflation. According to Anuj Puri, Chairman, ANAROCK Group, 'Micro markets tied to major infrastructure completions — such as metro lines in Bengaluru and Mumbai, expressways in NCR, and IT park expansions in Hyderabad and Pune — are best placed to sustain above-average gains.' In the early recovery years, annual rental increases of 12–24% were common in prime employment hubs. By H1 2025, rental growth had moderated nationally to 7–9% — still ahead of consumer inflation, but far more sustainable. In India's real estate cycle, infrastructure is the catalyst for price growth, while employment hubs anchor rental demand. For investors, spotting the next wave of connectivity and job corridors will be key to moving from average returns to exceptional ones. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

Will US tariffs cast a shadow over Trump's luxury-branded residences and affordable housing?
Will US tariffs cast a shadow over Trump's luxury-branded residences and affordable housing?

Hindustan Times

time11-08-2025

  • Business
  • Hindustan Times

Will US tariffs cast a shadow over Trump's luxury-branded residences and affordable housing?

Geopolitical tensions could weaken the appeal of one of the most recognisable names in ultra-luxury branded residences, Trump, say real estate experts. While the brand has long been associated with exclusivity, luxury benchmarks, and global prestige, current political and diplomatic headwinds may challenge its positioning. Some experts, however, argue that its role is largely limited to setting luxury benchmarks, with minimal impact on the actual project. Geopolitical tensions may dent the appeal of Trump-branded luxury residences in India, despite the brand's long association with exclusivity and global prestige. (Representational Photo)(Unsplash ) At the other end of the market, proposed US tariffs on Indian exports could dampen affordable housing sales. According to real estate consultancy Anarock, the tariffs may hurt small businesses and reduce the incomes of their employees, a key buyer segment for homes priced up to ₹45 lakh. 'Homebuying is known to be a sentimental decision. The geopolitical situation in India has had an impact on the brand Trump, and it would undoubtedly hurt the sales,' said a senior executive at Knight Frank India, noting that brand perception plays a critical role at the top end of the housing market. While the Trump name has long been associated with exclusivity, luxury benchmarks, and global cachet, the ongoing political and diplomatic headwinds could challenge its positioning, he said. Others believe that the brand's role is largely limited to setting luxury benchmarks, with minimal influence on the actual project. 'High Net Worth Individuals (HNIs) and Ultra High Net Worth Individuals (UHNIs) tend to look beyond the name on the door,' said Anuj Puri, chairman of ANAROCK Group. 'The brand has little to do with the actual project other than setting luxury benchmarks, a fact which actually works in their favour. These buyers focus on the overall value proposition: location, amenities, quality of construction, and exclusivity. Moreover, supply in these towers is extremely restricted, ensuring continued demand from a niche audience.' Also Read: RBI holds repo rate at 5.5% amid Trump tariff pressures; Home loan demand may rise during festive season Limited supply, exclusive access Experts say that Trump-branded residences in India are sold in very limited numbers and are marketed to a select pool of UHNIs. This makes gauging demand through traditional metrics such as open market inquiries or secondary transactions almost impossible. They say that the clientele for such homes considers multiple factors beyond branding, from long-term capital appreciation potential to the lifestyle offered. As such, even if the Trump brand loses some of its lustre, there will still be takers, they say. There are currently four Trump Tower properties in Mumbai, Pune, Gurugram, and Kolkata. With more launches expected in the coming months, India will have the highest number of Trump Towers, surpassing the United States. Will political optics influence luxury home buying decisions? Luxury property buyers in India are no strangers to global brands, from Armani to Versace to Trump. However, the influence of international politics on purchase decisions remains debatable. For the ultra-wealthy, experts say, the real driver remains financial stability and portfolio diversification, not political headlines. 'They would potentially be affected only if their personal finances are impacted by the economic fallout of geopolitical tensions,' Puri explained. 'Such individuals are generally able to make decisions without being dictated to by such considerations. All that said, we will have to wait and see how much, if any, of the brand's sheen erodes, thus bringing down the overall value proposition." India's luxury housing market has been expanding steadily, driven by a rising class of globally exposed entrepreneurs, executives, and investors. Branded residences, often developed in collaboration with luxury fashion houses, design studios, or celebrity personalities, have become a distinct segment, offering not just homes, but status. Also Read: The Trump Organization has partnered with leading Indian developers, earning nearly ₹175 cr from seven projects: Report Sales of affordable homes may be hit with likely impact of US tariff on MSMEs employees: Anarock According to realty consultant Anarock, affordable home sales are likely to be hit by the proposed US tariffs on Indian exports. This will hurt small businesses and the incomes of their staff, who are major buyers of housing properties costing up to ₹45 lakh. Micro, Small, and Medium Enterprises (MSMEs) account for a significant chunk of goods exports to the US, and a higher tariff will make their products less competitive. This will result in reduced business orders and, in turn, adversely impact the staff employed by these enterprises. ANAROCK data shows that in H1 2025, affordable housing accounted for just 18% of total sales, about 34,565 units out of 1.90 lakh sold across the top seven cities. This marks a sharp decline from 2019, when the segment held over 38% of the market. The segment, defined as homes priced at ₹45 lakh or less, is heavily dependent on demand from MSME and SME workforces, which could be severely affected by the U.S. tariffs. Prashant Thakur, executive director, Research and Advisory, ANAROCK Group, said the tariffs could significantly reduce future income for this large workforce, curbing demand further and potentially leading to higher loan defaults in the segment. "This category of homes priced ₹45 lakh or less was already gravely hit by the COVID-19 pandemic and is still struggling to find any semblance of firm ground. Trump's mercenary tariffs will snuff out even the dimmest ray of hope for this segment,' he said. Experts say that because of the disruption in this large workforce's future income thanks to the tariffs, affordable housing demand may very possibly derail and further impact sales in this highly income-sensitive segment. "Because of the disruption in this large workforce's future income thanks to the tariffs, affordable housing demand may very possibly derail and further impact sales in this highly income-sensitive segment," Thakur said. Further, he added that this would curtail launches of affordable homes by developers. 'Concurrently, such a drop in demand will curtail launches by developers, who will have to contend with tighter working capital due to lower sales. As it is, they have been grappling with serious input cost inflation since the pandemic," Thakur added.

RBIs status quo on rate and low inflation will boost housing demand in festive season: Experts
RBIs status quo on rate and low inflation will boost housing demand in festive season: Experts

Times of Oman

time07-08-2025

  • Business
  • Times of Oman

RBIs status quo on rate and low inflation will boost housing demand in festive season: Experts

New Delhi: The Reserve Bank of India's decision to keep the repo rate unchanged at 5.5 percent will keep interest rates stable and sustain the momentum in the housing market, which will gain further as the festival season approaches noted experts. Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE noted, "For the real estate sector specifically, this signals stability and offers long-term predictability to developers and homebuyers. The upcoming festive season and range-bound inflation are expected to boost the market momentum further." However, Samantak Das, Chief Economist and Head of Research and REIS, India at JLL, said the decision is a classic "wait-and-watch" move. "This move sends a message of stability and confidence in the economy's current trajectory, suggesting that it's resilient enough to handle external pressures without immediate intervention," he said. Stable rates, he added, would support organic growth without over-reliance on monetary easing. However, Anuj Puri, Chairman of ANAROCK Group, raised concerns about the sector's recent performance. "Indian real estate is weathering unrelenting turbulence as Trump's new 25 per cent tariffs and a 20 per cent plunge in housing sales across top metros have dampened sentiment," he said. According to ANAROCK data, only 96,285 homes were sold in Q2 2025, compared to 120,335 a year earlier. Puri noted that a rate cut would have helped boost the struggling affordable housing segment. While the experts from stock markets sees the move as a strategic flexibility. Arsh Mogre, Economist at PL Capital, said "Any fresh easing will now hinge not just on data but on the balance of risks between global trade retrenchment, domestic demand softening, and the rupee's trajectory. In this context, today's decision preserves both credibility and flexibility while acknowledging that we are in an uncertain world," he said.

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