Hyderabad’s real estate market has witnessed impressive growth between 2021 and 2024, with Hitec City and Gachibowli emerging as the top-performing locations. According to ANAROCK data, rental prices in Hitec City jumped by 54%, while capital appreciation increased by 62%. Similarly, Gachibowli experienced a 62% rise in rental values, and capital values saw a significant 78% growth.
📈 Capital Growth Surpassing Rental Appreciation in Key Cities
A nationwide study by ANAROCK reveals that capital values in major micro-markets across India’s top seven cities have increased by 128% between 2021 and 2024. However, rental values in many regions have not kept pace with this capital growth.
“During this period, capital values grew faster than rental values in major cities such as Bengaluru, Mumbai Metropolitan Region (MMR), National Capital Region (NCR), and Hyderabad,” said Anuj Puri, Chairman of ANAROCK Group. However, the opposite trend was observed in cities like Pune, Kolkata, and Chennai, where rental values appreciated more than capital values.
🏙️ Top Performing Real Estate Markets in India
Across India, several markets have shown strong performance:
- Sohna Road, NCR: Capital values grew by 59%, while rental values increased by 47%.
- Chembur, Mumbai: Capital values rose by 48%, with rental growth slightly lower at 42%.
These trends suggest that in cities where capital appreciation exceeds rental growth, buying a property becomes a more appealing investment choice. For investors, locations such as Noida, Hyderabad, and MMR offer promising long-term returns due to rising property prices.
💡 Investment Decision: Rent or Buy?
According to Anuj Puri, investors seeking long-term capital gains should focus on markets with strong appreciation potential. On the other hand, those looking for steady rental income should consider areas where rental demand is consistently growing.
As India’s real estate landscape evolves, buying and renting both remain viable options. However, the decision depends on the investor’s financial goals and the prevailing market conditions. While some regions offer higher capital appreciation, others provide a stable source of rental income, making both options attractive.
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