India Housing Market Sees Property Prices Nearly Double

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India’s housing markets have experienced a remarkable surge over the past four years, with property prices and rents climbing sharply across key urban micro markets, according to the latest data from ANAROCK Research. From the end of 2021 to mid-2025, several cities have recorded a near-doubling of property values, driven by strong employment demand, infrastructure upgrades, and limited supply in high-demand areas.

ANAROCK analyzed 14 of India’s most active housing micro markets across Bengaluru, Hyderabad, Pune, the National Capital Region (NCR), Mumbai Metropolitan Region (MMR), Kolkata, and Chennai. The study examined capital appreciation and rental value growth, identifying the factors contributing to sustained performance in these markets.

Anuj Puri, Chairman of ANAROCK Group, explained that the housing recovery that began in 2021 was fueled by pent-up demand, record-low interest rates, and a structural shift toward homeownership following the pandemic. “During the early recovery period, prime employment hubs saw annual rental increases ranging from 12 to 24 percent. By the first half of 2025, national rental growth moderated to 7–9 percent, remaining ahead of consumer inflation but at more sustainable levels,” Puri said.

Capital values followed a similar pattern, with rapid appreciation from 2021 to 2023 and steadier gains thereafter as new supply entered the market and buyers became more price-sensitive. Markets benefiting from infrastructure improvements, including new metro lines, expressways, or planned tech hubs, continued to defy the broader cooling trend.

Bengaluru: Sarjapur Road and Thanisandra

In Bengaluru, India’s technology capital, two micro markets have outperformed even the city’s robust average growth.

Sarjapur Road, part of the eastern IT corridor, has benefited from the upcoming Red Line Namma Metro connecting Hebbal to Sarjapur. Property prices reportedly increased significantly from 2021 to mid-2025, while average two-bedroom rents rose to approximately ₹38,000 per month.

Thanisandra Main Road, in the northern part of the city, saw notable capital gains and rent increases, though exact figures may vary. Its proximity to Manyata Tech Park, improved road connectivity, and limited land availability have made it particularly attractive to mid-to-upper-income IT professionals. Speculative interest in projects such as the proposed ‘Swift City’ mega-tech hub has further fueled demand.

Hyderabad: HITECH City and Gachibowli

Hyderabad’s western corridor has also seen sustained growth.

HITECH City, the city’s technology hub, reportedly saw substantial rises in property values and rents over the same period.

Gachibowli, adjacent to HITECH City, reportedly experienced higher gains in capital values and rents. The concentration of multinational company campuses, premium residential complexes, and international schools continues to attract IT professionals, keeping rental growth in double digits despite nationwide moderation.

ANAROCK’s findings indicate that employment-driven demand, limited land supply, and strategic infrastructure development remain key drivers of housing market performance. Investors and homebuyers alike are benefiting from these trends, particularly in micro markets where connectivity and economic activity are strongest.