Hyderabad’s real estate market has seen a sharp rise in property prices outpacing rental growth. According to a report by ANAROCK, capital values in Hyderabad and other top seven cities have increased by 128% between the end of 2021 and the end of 2024, while rental values have grown at a slower pace. This trend highlights a growing gap between capital and rental appreciation, especially in key micro-markets such as Gachibowli and Hitec City.
In Gachibowli, property prices rose from ₹5,010 per sq. ft. at the end of 2021 to ₹8,900 per sq. ft. at the end of 2024, reflecting a 78% increase. However, monthly rentals increased by 62% during the same period, rising from ₹22,000 to ₹35,700. Similarly, in Hitec City, capital values surged from ₹5,753 per sq. ft. in 2021 to ₹9,300 per sq. ft. in 2024, showing a 62% increase, while rental values grew from ₹23,000 to ₹35,400, marking a 54% rise.
Anuj Puri, Chairman of ANAROCK Group, noted that similar trends were observed in major cities like Bengaluru, MMR, and NCR, where capital value growth outpaced rental increases. In contrast, cities such as Pune, Kolkata, and Chennai saw rental values rising faster than capital values. This divergence suggests that buyers looking for long-term capital appreciation should focus on markets with strong capital growth, while rental-focused investors should target areas with consistent rental increases.
For homebuyers, understanding the balance between property price trends and rental growth is crucial for making informed decisions. The report underlines the importance of evaluating both capital and rental growth trends to maximize returns and avoid potential mismatches in market expectations. The data highlights the evolving nature of the real estate market in Hyderabad and across India, providing valuable insights for investors and homebuyers alike.
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