Capital Growth in India Exceeds Rental Increase Over 3 Years, Noida’s Sector 150 Tops the List: Report
Click to start listening
Synopsis
A recent report highlights that capital values in major Indian cities surged by 128% from 2021 to 2024, significantly outpacing rental growth. Noida's Sector 150 led this trend, showcasing a remarkable increase in property values.
Key Takeaways
- Capital values in key markets increased by up to 128%.
- Noida’s Sector 150 experienced the highest appreciation.
- Rental values grew at a slower pace, with an average of 66%.
- Major cities showcased patterns of stronger capital growth than rentals.
- Investors should evaluate both capital and rental trends.
Mumbai, March 17 (NationPress) The capital values in prominent micro-markets across the top seven cities have skyrocketed by as much as 128 percent from the end of 2021 to 2024, while rental values have experienced a much slower increase, according to a recent report released on Monday.
As per the latest findings from Anarock, Noida’s Sector 150 has seen the most significant capital appreciation, with property values soaring by an astonishing 128 percent during this time span, among the seven cities, which include Bengaluru, Hyderabad, Pune, NCR, Mumbai metropolitan region, Kolkata, and Chennai.
In contrast, rental values for a standard 1,000 square feet (sq ft) 2BHK in the region have only risen by 66 percent.
Similar patterns have been observed in major cities such as Hyderabad, the Mumbai Metropolitan Region (MMR), and the National Capital Region (NCR), where property prices have shown stronger growth compared to rental values.
For example, in Mumbai’s Chembur, capital values surged by 48 percent, while rental appreciation was slightly lower at 42 percent.
In Mulund, rental values increased by only 29 percent, while capital prices rose by 43 percent, according to the report.
In Hyderabad’s HITECH City and Gachibowli, capital values climbed by 62 percent and 78 percent, respectively, whereas rental growth reached 54 percent and 62 percent.
The real estate market in Bengaluru displayed mixed trends. Thanisandra Main Road saw a 67 percent increase in capital values, with rental growth trailing at 62 percent.
However, on Sarjapur Road, rental values grew more rapidly at 76 percent, in contrast to a 63 percent increase in capital values.
“Investors aiming for long-term capital appreciation should focus on markets exhibiting high growth, while those prioritizing rental income should consider areas with steady rent increases,” stated Anuj Puri, chairman of the Anarock Group.
He emphasized that for homebuyers, it is crucial to compare property price trends with rental growth to determine whether buying or renting is more financially viable in each location.
Interestingly, some micro-markets in Pune, Kolkata, and Chennai displayed the opposite trend, where rental values exceeded capital appreciation, as noted in the report.
Pune’s Hinjewadi experienced a 57 percent increase in rental rates, while capital values moved up by only 37 percent.
In Kolkata’s EM Bypass, rental values appreciated by 51 percent, while capital values saw a modest 19 percent rise.
Chennai’s Pallavaram followed a similar trend, with rental values climbing by 44 percent compared to a 21 percent increase in property prices.
