Surging Real Estate Trends: Rental Vs Capital Values in Major Indian Cities

Housing prices and rental values across key micro-markets in India have seen significant fluctuations. Regions like Sohna Road in Delhi-NCR and Sector-150 in Noida have witnessed notable increases in both capital and rental values, as per Anarock. These trends vary across cities like Bengaluru, Pune, Kolkata, Chennai, Mumbai, and Hyderabad.

Housing prices at Sohna Road, a crucial micro-market in the Delhi-NCR real estate sector, have surged by 54% since the start of 2022, while average rental values have seen a 40% increase, according to Anarock.

Real estate consultant Anarock highlighted that rental values in key micro-markets of the top 7 cities surged by up to 72% between the end of 2021 and the first half of 2024, even as capital values saw comparatively lower growth.

“Data analysis of key micro-markets in the top 7 cities shows that in cities like Bengaluru, Pune, Kolkata, and Chennai, average residential rental values rose more than capital values between the end of 2021 and H1 2024,” said Prashant Thakur, Regional Director & Head, Research, Anarock.

However, areas in NCR, MMR, and Hyderabad exhibited the opposite trend where capital values appreciated more than rental values. In Delhi-NCR’s Sohna Road, rental values rose 40% during the reviewed period, while capital values increased by 54%. Similarly, Sector-150 in Noida saw rental value growth of 56%, with capital values appreciating by a significant 126%.

In Mumbai Metropolitan Region (MMR)'s Chembur, rental growth was 38%, while capital appreciation was 39%. In Mulund, rental values appreciated by 26%, and capital prices rose by 36%. Hyderabad’s HITECH City and Gachibowli also saw capital appreciation outpacing rental values, with HITECH City recording rental growth of 46% and capital appreciation at 59%, and Gachibowli seeing rental values rise by 50% and capital values by 70%.

Key markets where rental value growth outpaced capital value appreciation include Bengaluru’s Sarjapur Road where average monthly rental values increased by 67%, while capital values rose by 54%. At Thannisandra Main Road, average rental values grew by 56% and capital values appreciated by 52%.

Pune’s Hinjewadi saw rental values increase by 52%, while capital values rose by just 31%. In Wagholi, rental value growth was 60%, while capital values increased by only 30%. Kolkata’s EM Bypass saw rental value appreciation of 46%, while capital value growth was just 15%. In Rajarhat, rental value rise was 30% against capital appreciation of 23%. Chennai’s Pallavaram recorded rental value growth of 40%, while capital values rose by 18%. In Perambur, rental value growth was 33%, while capital appreciation was 18%.