In a notable development, certain peripheral regions in India have experienced greater price increases over the past six years compared to many prime locations within the top seven cities, according to recent research by ANAROCK.
For example, the peripheral area of Gunjur in Bengaluru witnessed an impressive 69% rise in average residential prices, escalating from INR 5,030 per sq. ft. in 2019 to INR 8,500 per sq. ft. by the third quarter of 2024. In contrast, the prime area of Thannisandra Main Road recorded a 62% increase during the same timeframe, with prices climbing from INR 5,175 per sq. ft. to INR 8,400 per sq. ft. in Q3 2024.
Commenting on the same, Santhosh Kumar, Vice Chairman of ANAROCK Group, said that in the peripheral region of Noida Expressway in the National Capital Region, average residential prices surged by 66% over the last six years, rising from INR 5,075 per sq. ft. in 2019 to INR 8,400 per sq. ft. in Q3 2024. Meanwhile, the prime area of Raj Nagar Extension experienced a 55% increase, with prices moving from INR 3,260 per sq. ft. in 2019 to INR 5,050 per sq. ft. in Q3 2024. However, this trend is not consistent across all areas. For instance, the prime location of Dwarka Expressway in Delhi saw a remarkable 93% increase in average residential prices, from INR 5,359 per sq. ft. in 2019 to INR 10,350 per sq. ft. in Q3 2024.
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Overall, average residential prices have been on the rise across various cities over the past six years. Many peripheral areas in these top cities have outperformed prime locations due to their greater potential for price appreciation, as prime areas had already experienced significant growth in previous years. Additionally, enhanced connectivity and overall development in numerous peripheral regions have contributed to their improved livability.
Kumar further said that the past few years have witnessed the launch of several luxury projects in these peripheral areas to cater to growing demand. Consequently, average housing prices in these regions have increased. With ample land available, developers have focused on launching large, state-of-the-art projects. Enhanced connectivity has made it feasible for buyers to reside in expansive communities featuring ample green spaces, a trend that has gained prominence following the COVID-19 pandemic.
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