Capital Values In Top 7 Indian Cities Surge 128% Between 2021 And 2024: Report; Check Citi-Wise Data

In major cities such as Bengaluru, MMR, NCR, and Hyderabad, capital values experienced a higher growth rate than rental values during this period

In NCR, Sohna Road experienced a 59 per cent increase in capital values, while rental values grew by 47 per cent

Source : ABPLIVE AI

The capital values of properties in key micro-markets across India's top seven cities—Mumbai Metropolitan Region (MMR), Delhi NCR, Bengaluru, Pune, Kolkata, Hyderabad, and Chennai—have seen a substantial increase of 128 per cent from the end of 2021 to the end of 2024, according to data analysed by property consulting firm Anarock.

In major cities such as Bengaluru, MMR, NCR, and Hyderabad, capital values experienced a higher growth rate than rental values during this period. In contrast, certain localities in Pune, Kolkata, and Chennai witnessed a different trend, where rental values grew at a faster pace than capital values.

Delhi NCR

In NCR, Sohna Road experienced a 59 per cent increase in capital values, while rental values grew by 47 per cent. Meanwhile, Sector-150 in Noida saw a significant rise in capital values, which surged by 128 per cent, while rental values grew at a comparatively slower pace of 66 per cent during the same period, as per the report.

Abhishek Trehan, Executive Director, Trehan Iris, said, “The Noida real estate market has witnessed remarkable growth in recent years, with capital values soaring by an impressive 126 per cent since 2021. Moreover, the rental values grown by 56 per cent highlights the increasing demand for homeownership in the region. Noida’s rapid infrastructure development, improved connectivity, and the influx of corporate hubs have fueled this surge, making it one of the most sought-after investment destinations.”

Between the end of 2021 and the end of 2024, Hyderabad, NCR, and MMR experienced a higher growth in capital values compared to rental values. In Bengaluru, for example, Thanisandra Main Road saw capital values rise by 67 per cent, while rental values increased by 62 per cent. On the other hand, Sarjapur Road saw rental values appreciate more significantly at 76 per cent, compared to a 63 per cent rise in capital values. 

Similarly, in Hyderabad’s HITECH City and Gachibowli, capital values surpassed rental value growth. In MMR, areas like Chembur and Mulund also saw capital values grow faster—48 per cent and 43 per cent, respectively—compared to rental values, which grew by 42 per cent and 29 per cent. In contrast, key micro-markets in Pune, Kolkata, and Chennai experienced rental values growing at a faster pace than capital values during the same period.

In Mumbai's Chembur, capital values grew by 48 per cent, while rental values increased at a slower rate of 42 per cent. In Mulund, rental values saw a 29 per cent rise, while capital prices grew by 43 per cent. Similarly, Hyderabad's HITECH City and Gachibowli exhibited comparable trends—HITECH City experienced a 54 per cent increase in rental values, while capital values rose by 62 per cent, and in Gachibowli, rental values grew by 62 per cent, with capital values rising by 78 per cent.

Micro-Markets

However, in key micro-markets in Pune, Kolkata, and Chennai, rental values outpaced capital appreciation from the end of 2021 to the end of 2024. In Pune’s Hinjewadi, rental values rose by 57 per cent, while capital values increased by just 37 per cent. In Wagholi, rental growth reached 65 per cent, while capital values only grew by 37 per cent. In Kolkata’s EM Bypass, rental values surged by 51 per cent, compared to a 19 per cent rise in capital values, while in Rajarhat, rental values grew by 37 per cent and capital appreciation stood at 32 per cent. In Chennai, Pallavaram saw rental values grow by 44 per cent, while capital values rose by 21 per cent, and in Perambur, rental values increased by 36 per cent, with capital values rising by 23 per cent.

The clear divergence between capital value growth and rental appreciation in these areas suggests that homeownership is becoming increasingly attractive in markets where property values are rising faster than rental yields. This trend points to strong long-term returns for investors in cities like Noida, Hyderabad, and MMR, where capital appreciation is outpacing rental growth.

“More than ever, investors must align their strategy along very location-specific lines. 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. 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," said Anuj Puri, chairman of Anarock.