Chennai’s Pallavaram recorded rental values growth of 44%, while
capital values rose by 21%
Capital Appreciation Outpaces Rental
Growth, 128% in Key Markets
- Noida’s
Sector-150 saw capital values rise by a massive 128% growth b/w 2021 &
2024, while rental values (for standard 1,000 sq. ft. 2BHK) rose by 66%
- Among
the top 7 cities, Hyderabad, NCR & MMR saw avg. capital values rise
more than rentals b/w 2021-end to 2024-end
- In
Bengaluru, Thanisandra Main Road saw capital values rise higher (67%) than
rental values (62%); in Sarjapur Road, avg. monthly rental values rose
more (76%) than capital values (63%)
- NCR’s
Sohna Road saw capital values appreciate by 59% in this period, while
rental values rose 47%; Hyderabad’s HITECH City & Gachibowli also saw
capital values outpace rental values
- MMR’s Chembur & Mulund saw higher growth in capital values (by 48% & 43%, respectively) compared to rental value growth (42% & 29% respectively)
- However,
key micro markets in Pune, Kolkata & Chennai saw rental values
appreciate more than the capital values
Mumbai 17 March 2025: The answer to
the 'rent or buy' question keeps changing as the Indian housing market evolves.
Latest ANAROCK data finds that capital values in key micro markets of the top 7
cities have grown by a significant 128% between 2021-end and 2024-end, while
rental values in many micro markets have appreciated less than the overall capital
value growth.
“An analysis of the key micro markets in the top 7
cities shows that in major cities like Bengaluru, MMR, NCR and Hyderabad,
average capital values rose higher than rental values between 2021-end and
2024-end,” says Anuj Puri, Chairman – ANAROCK Group. “On the other
hand, localities in Pune, Kolkata and Chennai saw the reverse trend – rental
values appreciated more than the capital values.”
|
Avg. Monthly
Rentals Growth |
||||
|
Cities |
Micro Markets |
2021-end |
2024-end |
% Change |
|
Bengaluru |
Sarjapur Rd |
21,000 |
36,900 |
76% |
|
Thanisandra Main Rd |
20,500 |
33,200 |
62% |
|
|
Hyderabad |
HITECH City |
23,000 |
35,400 |
54% |
|
Gachibowli |
22,000 |
35,700 |
62% |
|
|
Pune |
Hinjewadi |
17,800 |
28,000 |
57% |
|
Wagholi |
14,200 |
23,500 |
65% |
|
|
NCR |
Sohna Road |
25,000 |
36,700 |
47% |
|
Sector-150 (Noida) |
16,000 |
26,600 |
66% |
|
|
MMR |
Chembur |
46,000 |
65,500 |
42% |
|
Mulund |
39,500 |
51,000 |
29% |
|
|
Kolkata |
EM Bypass |
19,000 |
28,600 |
51% |
|
Rajarhat |
15,000 |
20,550 |
37% |
|
|
Chennai |
Perambur |
16,200 |
22,100 |
36% |
|
Pallavaram |
14,900 |
21,500 |
44% |
|
Source: ANAROCK
Research
|
Avg. Capital Values
(INR/Sq. Ft.) |
||||
|
Cities |
Micro Markets |
2021-end |
2024-end |
% Change |
|
Bengaluru |
Sarjapur Rd |
6,050 |
9,850 |
63% |
|
Thanisandra Main Rd |
5,345 |
8,900 |
67% |
|
|
Hyderabad |
HITECH City |
5,753 |
9,300 |
62% |
|
Gachibowli |
5,010 |
8,900 |
78% |
|
|
Pune |
Hinjewadi |
5,710 |
7,800 |
37% |
|
Wagholi |
4,951 |
6,800 |
37% |
|
|
NCR |
Sohna Road |
6,600 |
10,500 |
59% |
|
Sector-150 (Noida) |
5,700 |
13,000 |
128% |
|
|
MMR |
Chembur |
18,735 |
27,800 |
48% |
|
Mulund |
16,917 |
24,200 |
43% |
|
|
Kolkata |
EM Bypass |
7,000 |
8,350 |
19% |
|
Rajarhat |
4,475 |
5,900 |
32% |
|
|
Chennai |
Perambur |
6,350 |
7,800 |
23% |
|
Pallavaram |
5,950 |
7,200 |
21% |
|
Source: ANAROCK
Research
Top markets where capital value
growth outpaced rental value growth - 2021-end to 2024-end:
- NCR’s
Sohna Road saw
capital values go up by 59% while rental values rose by 47%. Sector-150
in Noida saw capital values appreciate by a whopping 128% while
rental values rose by just 66% in the period.
- In Mumbai's
Chembur, capital value growth was 48% while rental appreciation
clocked in lower at 42%. In Mulund, rental values rose by just
29% while capital prices went up 43%.
- Hyderabad’s
HITECH City and Gachibowli also
saw similar dynamics - in HITECH City, rental value growth was 54% and
capital appreciation was 62%; in Gachibowli, rental values rose 62% and
capital values 78%.
- While Bengaluru’s
Thanisandra Main Road saw capital values appreciate more (67%)
than avg. rental values (62%) in the period, Sarjapur Road saw
average monthly rental values increase more (76%) than capital values
(63%).
On the other hand, key micro markets in Pune,
Kolkata and Chennai saw higher rental values growth than the capital value
appreciation between 2021-end to 2024-end:
- Pune’s
Hinjewadi saw
rental values appreciate by 57%, while capital values rose by just 37%.
In Wagholi, rental value growth was 65% while capital values
rose by just 37%.
- In Kolkata’s
EM Bypass, rental value appreciation was 51%, while capital values
rose by just 19% in this period. In Rajarhat, rental values
grew by 37% while capital appreciation was 32%.
- Chennai’s
Pallavaram recorded
rental values growth of 44%, while capital values rose by 21%. in Perambur,
rental values grew by 36% while capital values rose 23%.
The clear divergence between capital appreciation
and rental growth in these areas indicates that homeownership is becoming more
lucrative in key markets where property values are rising faster than rental
yields. For investors, this suggests strong long-term returns in cities like
Noida, Hyderabad, and MMR, where capital appreciation outpaces rental growth.
“More than ever, investors must align their
strategy along very location-specific lines,” says Anuj Puri. “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.”
