Between the end of 2021 and the end of 2024, rental values in Hyderabad’s Hitec City grew by 54%, while capital appreciation surged 62%. In Gachibowli, rental values increased 62%, with capital values rising even higher at 78%.
The decision to rent or buy a home continues to evolve as the Indian housing market shifts.
According to the latest ANAROCK data, capital values in key micro-markets across the top seven cities have grown significantly — 128% between 2021-end and 2024-end — while rental appreciation in many areas has lagged behind overall capital value growth.
“An analysis of key micro-markets in the top seven cities shows that in major hubs like Bengaluru, MMR, NCR, and Hyderabad, average capital values have increased at a faster rate than rental values over the past three years,” says Anuj Puri, Chairman – ANAROCK Group. “However, in Pune, Kolkata, and Chennai, rental values have appreciated more than capital values.”
For instance, in NCR’s Sohna Road, capital values have risen 59%, while rental values increased 47%. In Mumbai’s Chembur, capital appreciation stood at 48%, whereas rental growth was slightly lower at 42%.
This divergence between capital appreciation and rental growth highlights that homeownership is becoming more attractive in markets where property values are rising faster than rental yields.
For investors, cities like Noida, Hyderabad, and MMR present strong long-term returns, as capital values continue to outpace rental growth.
“Those seeking long-term capital appreciation should focus on high-growth markets, while rental-focused investors should target areas where rents are steadily increasing,” Puri advises.