India’s Booming Tech Hub Property Prices

In recent years, India’s tech hubs such as Bangalore’s Whitefield and Hyderabad’s HiTech city, including areas like Gachibowli and Kondapur, have witnessed a significant surge in property prices, marking a notable uptick of around 30% over the last three years. These regions have emerged as top performers in terms of residential market price appreciation, especially in comparison to October 2020 figures.

Tech Hub Property Price Surge

According to data from real estate consultancy firm Anarock Research, Gachibowli in Hyderabad experienced an average residential price increase from ₹4,790 per square foot in October 2020 to around ₹6,355 per square foot by October 2023, representing a substantial 32% hike. Similarly, Kondapur recorded a 31% average price surge during this period, while Bengaluru’s Whitefield saw a commendable 29% jump in property prices.

Factors Driving Price Appreciation

Prashant Thakur, the regional director & head of research at Anarock Group, attributes Hyderabad’s higher potential for price appreciation to its relatively lower average prices compared to Bengaluru’s IT/ITeS hubs before the Covid-19 pandemic. The convergence of strong demand, favorable market conditions, and increased buyer interest has propelled the surge in property prices across these tech-centric regions.

Nationwide Price Trends

The trend of escalating property prices extends beyond tech hubs. Pune’s Wagholi area and Delhi’s Greater Noida West also observed significant spikes in property values. Moreover, several areas in the Mumbai Metropolitan Region (MMR) and the National Capital Region (NCR) saw price hikes ranging from 13% to 27%.

Resilience in Demand and Market Outlook

Contrary to the stagnant prices seen in 2020 due to subdued demand and excess inventory, the current scenario reflects robust demand fueled by the pandemic-induced shift in housing preferences. The festive season witnessed a remarkable surge in property registrations, especially in Mumbai, where registrations soared by 30%.

Experts remain optimistic about the industry’s resilience, citing increased input costs, rising land prices, and evolving buyer preferences as factors contributing to the upward trajectory in property prices. Developers are confident that the market will absorb these price hikes, given the sustained demand for larger homes with enhanced amenities.

The real estate sector’s performance underscores a transformative phase marked by strong demand, significant sales volumes, and an optimistic outlook for the future.