Hyderabad sees capital value rise more than rentals between 2021 and 2024

The answer to the 'rent or buy' question keeps changing as the Indian housing market evolves

Hyderabad: Between 2021-end and 2024-end, the rental value growth in Hitec City grew by 54 per cent and capital appreciation was 62 per cent while in Gachibowli, the rental values rose 62 per cent and capital values 78 per cent.

The answer to the ‘rent or buy’ question keeps changing as the Indian housing market evolves. Latest ANAROCK data finds that capital values in key micro markets of the top 7 cities have grown by a significant 128 per cent between 2021-end and 2024-end, while rental values in many micro markets have appreciated less than the overall capital value growth.

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“An analysis of the key micro markets in the top 7 cities shows that in major cities like Bengaluru, MMR, NCR and Hyderabad, average capital values rose higher than rental values between 2021-end and 2024-end,” says Anuj Puri, Chairman – ANAROCK Group. “On the other hand, localities in Pune, Kolkata and Chennai saw the reverse trend – rental values appreciated more than the capital values.”

Top Markets:

NCR’s Sohna Road saw capital values go up by 59% while rental values rose by 47% and in Mumbai’s Chembur, capital value growth was 48% while rental appreciation clocked in lower at 42%.

The clear divergence between capital appreciation and rental growth in these areas indicates that homeownership is becoming more lucrative in key markets where property values are rising faster than rental yields. For investors, this suggests strong long-term returns in cities like Noida, Hyderabad, and MMR, where capital appreciation outpaces rental growth.

Says Anuj Puri, “Those looking for long-term capital appreciation can target markets with high appreciation, while rental-focused investors should zero in on localities where rents are rising steadily.”