Mumbai, March 17 The capital values in key micro-markets across the top seven cities surged by as much as 128 per cent between the end of 2021 and 2024, while rental values have grown at a comparatively slower pace, a new report said on Monday.
According to the latest data from Anarock, Noida’s Sector 150 recorded the highest capital appreciation, with property values increasing by a massive 128 per cent in this period, among seven cities -- Bengaluru, Hyderabad, Pune, NCR, Mumbai metropolitan region, Kolkata and Chennai.
However, rental values for a standard 1,000 square feet (sq ft) 2BHK in the area grew by only 66 per cent.
Similar trends were observed in major cities like Hyderabad, Mumbai Metropolitan Region (MMR), and the National Capital Region (NCR), where property prices saw stronger growth than rental values.
For instance, in Mumbai’s Chembur, capital values increased by 48 per cent, while rental appreciation was slightly lower at 42 per cent.
In Mulund, rental values grew by just 29 per cent, whereas capital prices rose by 43 per cent, the report said.
Hyderabad’s HITECH City and Gachibowli followed the same pattern, with capital values rising 62 per cent and 78 per cent, respectively, while rental growth was recorded at 54 per cent and 62 per cent.
Bengaluru’s real estate market showed mixed trends. Thanisandra Main Road witnessed a 67 per cent rise in capital values, while rental growth lagged slightly at 62 per cent.
However, in Sarjapur Road, rental values grew faster at 76 per cent, compared to a 63 per cent increase in capital values.
“Those looking for long-term capital appreciation can target markets with high appreciation, while rental-focused investors should zero in on localities where rents are rising steadily,” says Anuj Puri, chairman, Anarock Group.
He added that for homebuyers, it is extremely important to weigh property price trends against rental growth to understand if buying or renting makes more financial sense in each location.
Interestingly, a few micro-markets in Pune, Kolkata, and Chennai saw the opposite trend, where rental values grew more than capital appreciation, the report added.
Pune’s Hinjewadi recorded a 57 per cent increase in rental rates, whereas capital values rose by just 37 per cent.
In Kolkata’s EM
Chennai’s Pallavaram followed a similar pattern, with rental values growing by 44 per cent against a 21 per cent rise in property prices.
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