Hyd tops major cities with 64% surge in housing prices

Hyderabad: Driven by buoyant demand and increased supply in new residential properties, Hyderabad recorded the highest price surge among major cities, with a 64 per cent increase between 2019 and the first half of 2024, according to an Anarock Research report. The property consultant analysed price trends in key micro-markets across the top seven cities, focusing on areas with the most significant new supply over the past five years.

In the micro-markets, Kokapet in Hyderabad saw the second-highest average price appreciation at 89 per cent between 2019 and the first half of 2024. The area experienced a new supply of 12,920 units during this period, with prices rising from Rs 4,750 per square foot in 2019 to Rs 9,000 per square foot in H1 2024. Notably, 52 per cent of the new launches were in the ultra-luxury segment priced above Rs 2.5 crore, while 30 per cent were in the mid and premium segments. The remaining 19 per cent of the supply fell within the luxury price bracket of Rs 1.5 - 2.5 crore, according to the report.

Hyderabad’s Bachupally ranked sixth, with average property prices rising by 57 per cent from Rs 3,690 per square foot in 2019 to over Rs 5,800 per square foot in the first half of 2024. Tellapur secured the seventh position, experiencing a 53 per cent increase in average property prices during the same period, with prices climbing from Rs 4,819 per square foot in 2019 to Rs 7,350 per square foot in H1 2024.

“Housing price growth accelerated after the pandemic, particularly if we consider the last two years,” said Anuj Puri, Chairman, Anarock Group. “As per our data, the top seven cities collectively saw over 44 per cent of price appreciation over the last five years. At a city level, Hyderabad recorded the highest jump of 64 per cent between 2019 and H1 2024, followed by Bengaluru with a 57 per cent increase,” he added.

In the top 10 micro-markets for new supply, Tellapur (Hyderabad) ranks ninth with about 18,960 new units added. Of the total new supply, 66 per cent was in the mid and premium segments, followed by 34 per cent in the Rs 1.5 crore price range. Puri further said, “The commonly held notion that high new supply in a market tends to curtail price growth is not entirely true as many of these active residential micro-markets have seen significant price appreciation over the last five years.”