It’s not Delhi. It’s not Mumbai. Over the past four years, the Indian city with the steepest rise in home prices is Hyderabad, clocking a staggering 80% jump in average residential property rates. The southern metro city has overtaken not only the national capital Delhi and financial hub Mumbai, but also major tech centres such as Bengaluru and Noida, establishing itself as India’s top-performing property market amongst major cities, as per a LinkedIn post by Gurugram-based investment banker Sarthak Ahuja.
The city’s growth has been nothing short of remarkable, setting a new benchmark for price appreciation in the region. Ahuja has meticulously analysed data on average residential property price movements across these metro cities since 2020. Ahuja said, “And no, #1 is not Gurgaon” highlighting the unexpected nature of Hyderabad’s rise.
Ahuja’s analysis focused on citywide averages rather than individual cases where properties might have tripled in value. His approach ensures a more accurate representation of the market trends, providing valuable insights for investors and analysts alike.
Trailing behind Hyderabad in this remarkable growth are Noida, with a 70% rise, and Gurugram, where prices have increased by 60%. Meanwhile, Delhi and Bengaluru both reported a 45% gain in property prices, whereas Mumbai’s growth was a modest 40%. These figures indicate a significant shift in the property market dynamics across major Indian cities, reflecting changing investor preferences and economic conditions.
“There are outliers in every city where someone will say their property 3Xed in four years. But here, we’re discussing averages for the market,” Ahuja noted. His analysis highlighted the importance of focusing on overall market trends rather than isolated cases. This objective approach reveals a broader picture of the real estate landscape, where Hyderabad’s performance is particularly striking. Such insights are crucial for stakeholders aiming to navigate the complexities of the property market effectively.
The average appreciation for metro India stood at about 50%, which means that most cities have underperformed relative to this benchmark. “Now, all these cities have underperformed the average increment,” Ahuja said, reinforcing Hyderabad’s outlier status in the national context. This disparity highlights the unique factors driving Hyderabad’s success, setting it apart from its peers.
Ahuja attributes Hyderabad’s property market surge to several factors: astute demand bets, an aggressive push for infrastructure development, and bullish investor sentiment. These elements combined have created a conducive environment for substantial property price growth.
This trend highlights a noteworthy shift in the real estate market focus, with Hyderabad now taking the lead. For property investors and market analysts, the city’s progression presents both a model of success and a new focal point for future investments. The implications of this shift are profound, potentially reshaping investment strategies and priorities across the sector.
