Housing industries have always been on the rise, but India’s tech powerhouses,
Bengaluru and Hyderabad are ruling the real estate market, with home prices
soaring to unprecedented heights. The two southern cities are not just leading the
nation in IT innovation—they’re now at the forefront of a major property boom. The
post-pandemic era has seen a significant rise in the demand for Indian IT services
and professionals, creating demand for new homes in metropolitan areas and substantially soaring prices.
Trends from the past five years suggest that home prices in key neighbourhoods of
both cities have skyrocketed by up to 90%. The northern suburb of Bengaluru,
Bagaluru has seen a stunning 90% increase in property prices since 2019. Experts
suggest this surge is largely attributed to the upcoming airport metro line, which
would boost connectivity and appeal to those who want larger homes with a touch
of greenery away from the bustling city centre, giving Bagaluru the steepest hike in
average home prices.
Anarock Group’s Chairman Anuj Puri shared his thoughts on the situation, stating,
“With a new supply of approximately 17,065 units during this period, average
residential prices in Bagaluru jumped from Rs 4,300 per sq. ft. in 2019 to
approximately Rs 8,151 per sq. ft. in H1 2024…A deeper analysis reveals that the
total new supply launched in this micro-market since 2019, over 94% was in the
price bracket of Rs 40 lakh to Rs 1.5 crore—the mid and premium segments. The
The remaining 6% was in the luxury segment priced above Rs 1.5 crore. Notably, there
was no new affordable supply in this locality.”
Hyderabad’s Kokapet is walking the same path; a thriving commercial and
residential hub with its special economic zone—has seen its home prices surge by
89% over the same period, making it one of the most sought-after places in the city. The
area has witnessed close to 12,920 units of new supply during this period, with
prices rising from Rs 4,750 per sq. ft. in 2019 to Rs 9,000 per sq. ft. in H1 2024. 52%
The new launches were in the ultra-luxury category and priced above Rs 2.5 crore,
followed by a cumulative 30% in the mid and premium segments. The remaining
19% of the supply was in the luxury price bracket of Rs 1.5 to 2.5 crore.
Meanwhile, Bengaluru’s Whitefield isn’t far behind, with home prices climbing 80%
over the last five years.
While Bengaluru and Hyderabad are leading the surge, other regions also see
significant changes. In the Delhi-NCR area, Dwarka Expressway has experienced a
79% rise in home prices, and New Gurugram has seen a 48% increase. Panvel near
Mumbai has also seen a 50% rise, driven by metro expansions opening up
new opportunities for real estate development.
“Housing price growth accelerated after the pandemic, particularly over the last two
years,” stated Puri. “According to our data, the top seven cities collectively saw over
44% price appreciation in the last five years. At a city level, Hyderabad recorded the
highest jump of 64% between 2019 and H1 2024, followed by Bengaluru with a 57%
increase. The lowest price growth of 25% was seen in Kolkata. NCR and MMR both
witnessed a 48% price appreciation during this period.
