How Are India's Housing Micro Markets Yielding Returns from 2021 to Mid-2025?

New Delhi, Aug 13 (NationPress) The most vibrant housing micro-markets in India have generated significant returns for both investors and homeowners from late 2021 through mid-2025, according to a report released on Wednesday. In several regions, property values have nearly doubled; in others, rental prices have surged beyond inflation rates, as highlighted by ANAROCK Research.

In Bengaluru, two specific areas—Sarjapur Road and Thanisandra Main Road—have outpaced the city’s overall growth rate.

The anticipated Red Line of the Namma Metro, which links Hebbal to Sarjapur, has ignited renewed interest in Sarjapur Road.

From 2021 to Q2 2025, property prices in this area soared by 79 percent, while the average rent for a 2BHK unit rose by 81 percent to reach Rs 38,000 a month, the report detailed.

Meanwhile, Thanisandra Main Road in the north has exhibited similar growth, with property values increasing by 81 percent and rents climbing by 65 percent.

"The rebound that started in 2021 was fueled by pent-up demand, historic low interest rates, and a shift towards homeownership following the pandemic. During the initial recovery phase, annual rental increases ranging from 12-24 percent were commonplace in prime job hubs," stated Anuj Puri, Chairman of ANAROCK Group.

By the first half of 2025, rental growth had stabilized nationally at 7-9 percent—still above consumer inflation but significantly more sustainable, he noted.

In Hyderabad, HITECH City, recognized as the tech hub, has seen a 70 percent increase in property values and a 58 percent rise in rents over the last three and a half years.

Gachibowli, adjacent to HITECH City, experienced even greater gains—property values surged by 87 percent and rents increased by 66 percent, as the report pointed out. Hinjewadi in Pune, which hosts the city’s largest IT park, observed a 40 percent rise in prices and a 60 percent climb in rents since 2021.

The report identifies two distinct trends in the National Capital Region—established corporate corridors and emerging investor hotspots.

Sohna Road in Gurugram exemplifies this duality, benefiting from strong corporate leasing and enhanced connectivity through the Delhi–Mumbai Expressway. Property prices have risen by 74 percent since 2021, while rents have climbed by 50 percent, the report indicated.

Sector-150 in Noida stands out nationally, with property values skyrocketing by 139 percent in just over three and a half years.

In land-constrained Mumbai, the price growth in suburbs with better transportation access has been remarkable.

Chembur, once an underrated suburb in Mumbai, has been revitalized by the Eastern Freeway and Metro Line extensions, leading to a 53 percent increase in property prices and a 46 percent rise in rents.

Mulund, serving as a bridge between Mumbai and Thane, has experienced similar capital gains of 50 percent but more moderate rental growth of 32 percent, partly due to higher initial rental levels, the report stated.