Hyderabad: The real estate market in Hyderabad has witnessed a surge in property prices outpacing rental growth.
According to a report by the real estate services company ANAROCK, capital values in key micro markets of the top seven cities, including Hyderabad, have grown by a significant 128 percent between the end of 2021 and the end of 2024, while rental values in many micro markets have appreciated less than the overall capital value growth.
Real estate in Hyderabad sees 78 pc rise in property prices
As per the report, in Gachibowli, prices increased from Rs 5,010 per sq. ft. at the end of 2021 to Rs 8,900 per sq. ft. at the end of 2024, reflecting a 78 percent hike.
In the same period, monthly rentals grew by 62 percent, rising from Rs 22,000 to Rs 35,700.
Similarly, in Hitec City, prices increased from Rs 5,753 per sq. ft. at the end of 2021 to Rs 9,300 per sq. ft. at the end of 2024, marking a 62 percent hike.
Between 2021 and 2024, the area also saw an increase in monthly rental values from Rs 23,000 to Rs 35,400, reflecting a rental growth of 54 percent.
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Analysis of key micro markets in the top 7 cities
Apart from real estate in Hyderabad, other markets also witnessed similar trends.
Anuj Puri, chairman of ANAROCK Group, stated, “An analysis of the key micro markets in the top seven cities shows that in major cities like Bengaluru, MMR, NCR, and Hyderabad, average capital values rose higher than rental values between the end of 2021 and the end of 2024. On the other hand, localities in Pune, Kolkata, and Chennai saw the reverse trend—rental values appreciated more than capital values.”
Below are the property prices and rentals in various cities including Hyderabad.
| Micro Markets (City) | Monthly rent (2021-end) | Monthly rent (2024-end) | Change in monthly rent (percentage) | Property price per sq.ft. (2021-end) | Property price per sq.ft. (2024-end) | Change in property prices(percentage) |
| Sarjapur Rd (Bengaluru) | 21,000 | 36,900 | 76 | 6,050 | 9,850 | 63 |
| Thanisandra Main Rd (Bengaluru) | 20,500 | 33,200 | 62 | 5,345 | 8,900 | 67 |
| HITECH City (Hyderabad) | 23,000 | 35,400 | 54 | 5,753 | 9,300 | 62 |
| Gachibowli (Hyderabad) | 22,000 | 35,700 | 62 | 5,010 | 8,900 | 78 |
| Hinjewadi (Pune) | 17,800 | 28,000 | 57 | 5,710 | 7,800 | 37 |
| Wagholi (Pune) | 14,200 | 23,500 | 65 | 4,951 | 6,800 | 37 |
| Sohna Road (NCR) | 25,000 | 36,700 | 47 | 6,600 | 10,500 | 59 |
| Sector-150(Noida) (NCR) | 16,000 | 26,600 | 66 | 5,700 | 13,000 | 128 |
| Chembur (MMR) | 46,000 | 65,500 | 42 | 18,735 | 27,800 | 48 |
| Mulund (MMR) | 39,500 | 51,000 | 29 | 16,917 | 24,200 | 43 |
| EM Bypass (Kolkata) | 19,000 | 28,600 | 51 | 7,000 | 8,350 | 19 |
| Rajarhat (Kolkata) | 15,000 | 20,550 | 37 | 4,475 | 5,900 | 32 |
| Perambur (Chennai) | 16,200 | 22,100 | 36 | 6,350 | 7,800 | 23 |
| Pallavaram (Chennai) | 14,900 | 21,500 | 44 | 5,950 | 7,200 | 21 |
“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,” Anuj Puri added.
