Some periphery areas have seen higher real estate price appreciation over the past six years than many prime locations in the top seven cities, according to findings by a research by consulting firm Anarock.
To illustrate, Bengaluru’s peripheral area Gunjur has seen average residential price increase of 69%- it rose from ₹5,030 per sq. ft. in 2019 to ₹8,500 per sq. ft. in Q3 2024.
Prime area Thannisandra Main Road, on the other hand, has seen a 62% average price growth in this period from ₹5,175 per sq. ft. to ₹8,400 per sq. ft. in Q3 2024, the Anarock study said.
Santosh Kumar, Vice Chairman, Anarock Group said, “In NCR’s peripheral Noida Expressway, average residential prices rose 66% in last six years – from ₹5,075 per sq. ft. in 2019 to ₹8,400 per sq. ft. in Q3 2024.”
“Prime area Raj Nagar Extension saw 55% growth in this period – from ₹3,260 per sq. ft. in 2019 to ₹5,050 per sq. ft in Q3 2024. However, this is by no means a uniform trend,” he added.
For instance, the prime area of Dwarka Expressway in Delhi saw a significant 93% jump in average residential prices – from ₹5,359 per sq. ft. in 2019 to ₹10,350 per sq. ft. in Q3 2024, he further said.
Mumbai Metropolitan Region’s peripheral area Panvel saw over 58% price appreciation in the last 6 years – from ₹5,520 per sq. ft. (2019) to ₹8,700 per sq. ft. (Q3 2024).
Prime area Worli, on the other hand, saw 37% price growth in this period – from ₹38,560 per sq. ft. (2019) to nearly ₹53,000 per sq. ft. (Q3 2024).
Similarly, prime area Lower Parel saw 49% growth, while periphery Virar saw 58% growth. In Lower Parel, average prices rose from ₹34,660 per sq. ft. (2019) to ₹51,660 per sq. ft. (Q3 2024).
In Virar, prices rose from ₹4,440 per sq. ft. (2019) to ₹6,850 per sq. ft. (Q3 2024).
Pune’s prime area Wakad recorded 27% price appreciation – from ₹6,530 per sq. ft. (2019) to ₹8,300 per sq. ft. (Q3 2024); periphery Wagholi saw 37% growth between 2019 and Q3 2024. Average prices there went from ₹4,820 per sq. ft. (2019) to ₹6,600 per sq. ft. (Q3 2024).
Kolkata’s prime Joka saw prices rise 51% - from ₹3,415 per sq. ft. (2019) to ₹5,150 per sq. ft. (Q3 2024) while peripheral Madhyamgram and Behala saw prices appreciate by 43% and 35% respectively. Prime area Rajarhat saw prices grow by just 29% in the period.
Chennai’s peripheral area Navalur saw prices grow by 54% in last 6 years – from ₹3,955 per sq. ft. (2019) to ₹6,080 per sq. ft. (Q3 2024).
Meanwhile, prime areas like Anna Nagar and T. Nagar saw prices appreciate 35% and 31% respectively in this period, as per the study.
Bengaluru’s peripheral area of Devanahalli also saw prices grow 49% in the last 6 years – from ₹4,982 per sq. ft. (2019) to ₹7,400 per sq. ft. (Q3 2024). Prime location Electronic City saw just 38% price growth in this period – from ₹4,658 per sq. ft. (2019) to ₹ 6,450 per sq. ft. (Q3 2024).
In Hyderabad, prime areas Gachibowli and Kondapur continue to see higher price growth than most peripheral areas like Kompalli, LB Nagar and Tellapur. Gachibowli recorded 86% price growth in the last 6 years – from ₹4,775 per sq. ft. (2019) to ₹8,900 per sq. ft. (Q3 2024).
Kondapur also recorded 86% price growth - from ₹4,620 per sq. ft. (2019) to ₹8,600 per sq. ft. (Q3 2024). These prime areas saw higher growth because their base prices were far lower than many of their counterparts in other cities. This boosted the scope for higher appreciation there, Anarock said.
Similarly, NCR’s peripheral area Sohna saw price growth of 43% - from ₹4,120 per sq. ft. (2019) to ₹5,900 per sq. ft. (Q3 2024) while prime area New Gurugram saw prices appreciate by 59% in the same period.
“Overall, average residential prices have been rising across cities in the last six years. Many peripheral areas in the top cities outshone prime areas because their scope of price appreciation was higher than in prime areas; the latter already saw appreciable price growth in previous year,” the consulting firm said.
“Also, improved connectivity and overall development in many peripheral areas have boosted their liveability,” it added.
“The last few years have seen several luxury projects launched in these peripheries to meet demand,” Mr Kumar said.
“Inevitably, average housing prices rose there. With sufficient land available in the peripheries, developers have zeroed in on them to launching large state-of-art projects there. Improved connectivity has made it feasible for buyers to live in larger societies with generous green open spaces. This trend has become very prevalent after the COVID-19 pandemic,” he added.
Published - December 10, 2024 03:37 pm IST