In recent years, residential property prices in India have shown notable growth across numerous cities. This trend has been propelled by increased demand and the introduction of new housing projects. Research from various sources, including ANAROCK, sheds light on key micro-markets within the country's top cities that have experienced significant price increases.

Bengaluru's Bagaluru tops the list, with an impressive 90% price appreciation from 2019 to the first half of 2024. Here, the average residential price jumped from INR 4,300 per square foot in 2019 to approximately INR 8,151 per square foot. This surge can be attributed to the launch of about 17,065 new residential units during this period, with the primary focus on the mid and premium segments, which made up over 94% of the total new supply. Unfortunately, the area saw no new affordable housing offerings, indicating a growing gap in the market for lower-income buyers.

Hyderabad's Kokapet follows closely, recording an 89% increase in residential prices, rising from INR 4,750 per square foot in 2019 to INR 9,000 per square foot by mid-2024. Similar to Bagaluru, Kokapet has also seen a considerable number of new units introduced-around 12,920. A key finding is that 52% of these new homes fall into the ultra-luxury category, reflecting a shift in buyer preferences towards higher-end properties.

In addition to Bagaluru and Kokapet, Bengaluru's Whitefield also experienced significant growth, with residential prices climbing 80% during the same period. The neighborhood saw around 18,600 new units introduced, highlighting the ongoing demand for housing in well-established tech hubs. The area's price per square foot reached INR 8,600, underscoring the strong interest from buyers in these sought-after locations.

The analysis reveals a common trend: demand for mid and luxury segment homes is outpacing affordable housing supply. The National Capital Region's Dwarka Expressway, for instance, observed a remarkable 79% price increase, from INR 5,359 to over INR 9,600 per square foot, as over 20,250 new units were launched.

Interestingly, the data challenges the perception that high supply leads to stagnant prices. Markets with robust new launches, like Greater Noida West, experienced staggering price hikes, with appreciation rates peaking at 129%. This underscores that a vibrant market does not necessarily mean lower prices, as demand can outweigh supply in many instances.

The overall picture shows an increase in average prices across India's main urban centers, with Hyderabad leading the way with a 64% increase, followed closely by Bengaluru at 57%. Kolkata, on the other hand, had the lowest growth rate at 25%, indicating regional disparities in the real estate market.

The past five years have seen over 1.6 million new residential units launched across the top seven cities. The Mumbai Metropolitan Region (MMR) topped the supply charts, while cities like Pune also contributed significantly to the total supply, with Dombivli emerging as a hotspot for new developments. Notably, Dombivli recorded the highest new supply among micro-markets, yet average prices grew only by 40%, revealing the diversity in price trends based on local demand and supply conditions.

This evolving landscape presents challenges and opportunities for both buyers and investors. While investments in high-demand areas like Bagaluru and Kokapet may provide considerable returns, the lack of affordable housing options calls for a balanced approach to urban development. Policymakers and developers need to consider the growing disparity in housing availability and work towards creating inclusive communities that cater to a broader range of income levels.

In conclusion, the current state of the Indian residential market reflects both strong demand and varied growth patterns across cities. As urban areas continue to expand, monitoring these trends will remain essential for stakeholders in the real estate sector. With a shift towards higher-end housing, it remains crucial to address the evolving needs of all segments of homebuyers to ensure sustainable and equitable growth in the real estate market.