Tech cities like Bangalore and Hyderabad, are seeing massive market growth in 2024 in the real estate landscape of India.
Home prices have risen sharply due to the increased demand, which has mostly come from individuals working in information technology and new enterprises.
The real estate growth percentage of localities in Bangalore and Hyderabad shows that there is a strong need for homes close to IT parks, well-developed facilities, and a growing number of expatriates interested in investing in these cities.
A Report on Bangalore and Hyderabad Real Estate Surge by Anarock:
It has been reported by Anarock that the demand for housing in Bengaluru and Hyderabad has surged by more than 80 percent in certain areas since the year 2020.
To a large extent, this is because the key drivers of this demand are the information technology and information technology-related services employees that reside in these cities.
Between the end of 2019 and June of this year, home prices in Bengaluru’s Bagalur rose by 90%. In Whitefield, a popular place for techies, prices rose by about 80%.
The price gain for these two localities in Bengaluru was seen during the same period, according to a new analysis published by Anarock. And, Costs on Sarjapur Road increased by 58% over the past year.
According to the research, the prices of real estate in Kokapet, which is located close to the airport in Hyderabad, increased by 89%, while the prices in Bachupally increased by 57%, and Tellapur increased by 53%.
Demand for residential real estate in the southern cities of Bengaluru and Hyderabad is primarily fuelled by IT/ITeS professionals who were unaffected by the pandemic.
Anaorck says that demand went through the roof when many millennials (who had previously chosen to rent over buy) shifted from renting to buying as a sound investment.
Anuj Puri of Anarock on Bangalore and Hyderabad Real Estate Surge:
Anuj Puri of Anarock has stated, “The initial phase of the pandemic saw a significant number of individuals stepping forward to purchase their own homes, as a result of the numerous offers and discounts that developers have extended.
As the tendency continued, demand remained unchanged, and purchasers were unaffected by the inflationary tendencies of input costs, even as prices continued to rise. In addition, this resulted in an additional increase in pricing by developers as a consequence of the high demand.
Before the pandemic of 2020, many cities experienced a prolonged period of range-bound home prices as a consequence of the influence of structural reforms such as the Real Estate Regulatory Act (RERA), the DeMo, the Goods and Services Tax (GST), and others.
The developers perceived the current situation (post-Covid) as an advantageous opportunity to raise prices, as demand soared. The price increase is predominantly observed from 2022 onward.
Demand has stayed very high in all of these places for the past two years, so developers have also tried to raise their prices, which was long overdue, stated Anuj Puri of Anarock.
This is how the prices looked:
Based on the figures, prices have gone up over 44% in the last five years in the top seven cities.
When looking at cities, Hyderabad saw the biggest increase, at 64% between 2019 and H1 2024. Bengaluru came in second, with a 57% rise.
Kolkata had the least amount of price rise, at 25%. Anarock data showed that both NCR and MMR saw their prices rise by 48% during this time.
In Bagaluru, home prices went from ₹4,300 per square foot in 2019 to ₹8,151 per square foot in H1 2024, a huge jump of almost 90%.
Following Baguluru, Kokapet in Hyderabad saw an 89% price rise. The price per square foot in 2019 came out to be ₹4,750. Whereas, In the first half of 2024, the price was valued at ₹ 9,000 per square foot.
Bengaluru’s Whitefield, where housing prices rose 80%, occupied the third position. Prices went up from ₹4,765 per square foot in 2019 to ₹8,600 per square foot in the first half of 2024.
Bangalore and Hyderabad real estate boom: Going Forward
At this point, everything points to the housing market in these areas, especially in Bangalore and Hyderabad being strong in 2024, along with the other top cities.
The year could see another high point in sales and new homes being built. The Anarock study showed that developers are also still optimistic about the demand for homes in the coming quarters, especially in the premium and luxury segments.
In the first half of 2024, numerous listed developers have engaged in a land acquisition binge throughout Bangalore and Hyderabad. The other top cities showed the same trend.
Summing up, Anarock data indicates that the main listed developers have a robust pipeline of new launches in FY 2025, spanning nearly 176 million square feet.
Bengaluru alone is expected to have the highest amount of planned space, at approximately 51 million square feet.
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