The top seven cities in India would witness up to a 33% increase in average home prices over the next three years.

Housing Market Analysis

According to the analysis, Hyderabad has a greater potential for price appreciation because, prior to COVID-19, the city’s average prices were lower than in Bengaluru’s IT/ITeS clusters.

According to ANAROCK, a real estate advisory business, the top seven cities in India will see average residential price increases of up to 33% in three years.

According to the report, Hyderabad’s Gachibowli has the highest average price jump among key micro-markets in the top seven cities between 2020 and 10 months of 2023, at 33 percent, followed by Kondapur at 31 percent, Bengaluru’s Whitefield at 29 percent, and Hyderabad’s Miyapur at 28 percent.

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“The end of October, which marks the end of the holiday season, typically denotes the end of the year’s peak housing sales period.” Without discounts, 2020 was a year of price stagnation that most developers would rather forget. “Housing sales across the top seven cities have created a new peak this year, far exceeding the previous peak of 2014,” stated Prashant Thakur, Regional Director and head – Research, ANAROCK Group.

Up until the pandemic year of 2020, typical dwelling prices in cities have mostly stayed range-bound.

“There has been a significant increase in average housing prices across key micro-markets in the top seven cities, driven by both robust demand and increased input costs.” “Key areas in the IT-led cities Hyderabad, Bengaluru, and Pune saw the highest increase in average prices among the top seven cities,” Thakur noted.

Housing Market Analysis

“Hyderabad also has a greater potential for price appreciation because, prior to COVID, the city’s average prices were lower than in Bengaluru’s IT/ITeS hubs.” As of 10M 2023, average prices in Hyderabad’s important micro markets are nearly equal to those in Bengaluru’s IT-led housing hotspots,” Thakur stated.

Meanwhile, according to the report, the average property prices in Bengaluru increased by 27% and 26%, respectively, on Sarjapur Road and Thanisandra Main Road. The IT hotspots of Pune, Wagholi and Hinjewadi, experienced increases of 25% and 22%, respectively. According to the report, micro-markets driven primarily by IT/ITeS have experienced the highest average price appreciation.