India’s Housing Market Booms: Property Prices Nearly Double Since 2021
Between the end of 2021 and mid-2025, India’s most active housing micro markets have seen remarkable gains for homeowners and investors, according to ANAROCK Research. In some areas, property prices have almost doubled, while rents in certain pockets have risen at a pace well above inflation. The twin drivers behind this surge are strong employment-led demand and steady infrastructure upgrades, creating markets where both capital appreciation and rental growth are driven by location, connectivity, and economic momentum.
ANAROCK studied 14 of the most dynamic micro markets across Bengaluru, Hyderabad, Pune, NCR, Mumbai Metropolitan Region (MMR), Kolkata, and Chennai, analysing capital appreciation and rental trends and the reasons behind their performance.
Anuj Puri, Chairman of ANAROCK Group, said, “The recovery that began in 2021 was driven by pent-up demand, record-low interest rates, and a structural shift towards homeownership post-pandemic. In the early recovery years, annual rental growth of 12–24% was common in prime employment hubs. By H1 2025, rental growth moderated nationally to 7–9%—still above inflation, but more sustainable.”
“Capital values followed a similar path, rising rapidly between 2021–2023, then stabilising as new supply entered the market and buyers became more price conscious,” he added. “Notably, infrastructure-led markets—benefiting from new metro lines, expressways, or tech hubs—continued to defy this cooling trend.”
Bengaluru: Sarjapur Road & Thanisandra
- Sarjapur Road: Eastern IT corridor boosted by the Red Line Namma Metro (Hebbal–Sarjapur), property prices up 79%, 2BHK rents up 81% to ₹38,000/month.
- Thanisandra Main Road: North Bengaluru, capital gains 81%, rents 65%, close to Manyata Tech Park with improving connectivity.
Hyderabad: HITECH City & Gachibowli
- HITECH City: Property values up 70%, rents up 58% over 3.5 years.
- Gachibowli: Capital values up 87%, rents 66%, driven by multinational campuses, premium residential complexes, and scarcity of ready-to-move-in apartments.
Pune: Hinjewadi & Wagholi
- Hinjewadi: IT hub, property prices 40% up, rents 60% up since 2021.
- Wagholi: Well-connected via Nagar Road corridor, capital gains 40%, rents 69%, attractive for first-time investors.
NCR: Sohna Road & Noida Sector-150
- Sohna Road (Gurugram): Property prices 74% up, rents 50%, aided by corporate leasing and Delhi–Mumbai Expressway connectivity.
- Noida Sector-150: Property values surged 139%, rents 71%, boosted by greenfield townships and amenities.
Mumbai Metropolitan Region: Chembur & Mulund
- Chembur: Prices up 53%, rents 46%, improved by Eastern Freeway and Metro extensions.
- Mulund: Capital gains 50%, rents 32%, attracts families upgrading from crowded areas.
Kolkata: EM Bypass & Rajarhat
- EM Bypass: Capital values 25% up, rents 53%.
- Rajarhat: Capital appreciation 37%, rents 40%, aided by infrastructure and corporate presence.
Chennai: Perambur & Pallavaram
- Perambur: Prices 26% up, rents 39%, supported by suburban rail and metro.
- Pallavaram: Price gain 24%, rents 46%, close to airport and OMR corridor, popular with IT professionals.
Looking ahead to 2026, average housing price growth is expected at 6–7%, with rents rising 7–10%, both above inflation. Micro markets linked to major infrastructure projects—like metro lines in Bengaluru and Mumbai, expressways in NCR, and IT park expansions in Hyderabad and Pune—are likely to sustain above-average gains.
In India’s real estate market, growth follows infrastructure, and rental resilience follows jobs. For investors, spotting the next wave of connectivity and employment corridors could mean the difference between average and exceptional returns.
