69% appreciation in 6 yrs: Peripheries of Bengaluru, Noida top prime areas

Over the past six years, peripheral areas across India's top cities have outpaced prime locations in terms of housing price appreciation, according to the latest findings from  real estate consultancy firm ANAROCK Research.  The trend is particularly evident in Bengaluru’s Gunjur, which saw a staggering 69% increase in residential property prices from Rs 5,030 per sq. ft. in 2019 to Rs 8,500 per sq. ft. in the third quarter of 2024. In comparison, the prime area of Thannisandra Main Road, just a short distance away, witnessed a 62% increase in the same period. 

" In NCR’s peripheral Noida Expressway, average residential prices rose 66% in last six years – from Rs 5,075 per sq. ft. in 2019 to Rs 8,400 per sq. ft. in Q3 2024. Prime area Raj Nagar Extension saw 55% growth in this period – from INR 3,260 per sq. ft. in 2019 to Rs 5,050 per sq. ft in Q3 2024. However, this is by no means a uniform trend. For instance, the prime area of Dwarka Expressway in Delhi saw a significant 93% jump in average residential prices – from Rs 5,359 per sq. ft. in 2019 to Rs 10,350 per sq. ft. in Q3," said Santhosh Kumar, Vice Chairman - ANAROCK Group.

 

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 years. Also, improved connectivity and overall development in many peripheral areas have boosted their liveability.

 

City-Wise Price Growth: Periphery vs Prime Areas

The ANAROCK study reveals that, across several cities, peripheral areas have experienced higher price growth than their prime counterparts. Below are some highlights from the survey:

 

Bengaluru:

• Gunjur (Periphery): 69% price rise
• Thannisandra Main Road (Prime): 62% price rise
• Devanahalli (Periphery): 49% price rise
• Electronic City (Prime): 38% price rise

NCR:

 

• Noida Expressway (Periphery): 66% price rise
• Raj Nagar Extension (Prime): 55% price rise
• Dwarka Expressway (Prime): 93% price rise

MMR:

 

• Panvel (Periphery): 58% price rise
• Worli (Prime): 37% price rise
• Virar (Periphery): 58% price rise
• Lower Parel (Prime): 49% price rise

Pune:

 

• Wagholi (Periphery): 37% price rise
• Wakad (Prime): 27% price rise

Hyderabad:

 

• Kompalli (Periphery): 49% price rise
• Gachibowli (Prime): 86% price rise

Key Factors Driving the Surge in Peripheries

The shift toward peripheral areas has been largely driven by the availability of land, which has allowed developers to construct larger, more luxurious residential projects. These areas, once considered far-flung, are now seen as more accessible due to enhanced connectivity, with new expressways and metro lines improving commuting options.

 

“The COVID-19 pandemic also played a pivotal role in this trend,” said Kumar. “As more people sought larger homes with green spaces, the appeal of peripheral areas surged, with developers offering homes that cater to these demands.” 

The rise in prices for peripheral areas is not a uniform phenomenon across all cities, however. For instance, Gachibowli in Hyderabad saw a massive 86% price increase over the last six years, driven by the rising popularity of its tech and commercial hubs. In contrast, prime areas like Raj Nagar Extension in NCR saw comparatively lower growth, despite its popularity.

 

Price Growth Across Major Cities 

City-Wise Trends: Peripheries vs Prime Locations 

 

NCR: The Noida Expressway’s peripheral areas led the charge with a 66% rise in residential prices, while prime locations like Raj Nagar Extension saw 55% growth, and Dwarka Expressway recorded an impressive 93% increase.  NCR’s peripheral area Sohna saw price growth of 43% - from Rs  4,120 per sq. ft. (2019) to Rs 5,900 per sq. ft. (Q3 2024) while prime area New Gurugram saw prices appreciate by 59% in the same period.

 

Mumbai Metropolitan Region (MMR): Panvel and Virar in the periphery saw 58% growth each, while prime spots like Worli and Lower Parel recorded slower price increases of 37% and 49%, respectively.

 

Pune: Wagholi, an area on the city’s outskirts, saw a 37% price hike, while prime area Wakad only saw a 27% increase.

 

Kolkata: Madhyamgram on the periphery saw a price increase of 43%, while prime Joka saw a significant 51% increase.

 

Chennai: Prices in Navalur, a peripheral area, grew by 54%, compared to 35% in prime Anna Nagar. 

Bengaluru: Peripheral area of Devanahalli also saw prices grow 49% in the last 6 years – from Rs 4,982 per sq. ft. (2019) to Rs  7,400 per sq. ft. (Q3 2024). Prime location Electronic City saw just 38% price growth in this period – from Rs 4,658 per sq. ft. (2019) to Rs 6,450 per sq. ft. (Q3 2024).  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. Kondapur also recorded 86% price growth - from INR 4,620 per sq. ft. (2019) to INR 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.