Housing micro markets delivering gains for homeowners, investors: Anarock

Delhi NCR's Noida Sector 150 micro market led the pack with a 139 per cent growth in capital values at Rs 13,600 per square feet in Q2 2025 compared to Rs 5,700 per square feet at the end of 2021

India’s housing micro markets have delivered remarkable gains post-pandemic, with prominent cities seeing an increase in both rental and capital appreciation between the end of 2021 and mid-2025, according to a report by real estate consultancy firm Anarock. 

 

Capital appreciation in some parts was as high as 139 per cent, with Noida Sector 150 leading the race.

 

“While property prices have nearly doubled in some areas, in other areas rents have climbed at a pace that outstripped inflation by a wide margin,” the report said.

 

This shift has been recorded on the back of strong employment-driven demand and steady infrastructure upgrades.

 

Delhi NCR’s Noida Sector 150 micro market led with a 139 per cent growth in capital values at ₹13,600 per square feet in the second quarter of 2025 compared to ₹5,700 per square feet at the end of 2021. Rental values for the market too grew by 71 per cent during the period.

 

Following it was Gurugram’s Sohna Road, which saw its capital values rise by 74 per cent, along with a 50 per cent increase in rental values.

 

The report said that these locations benefit from planned urban development, which provides green spaces, and large-scale amenities, attracting both investors and end-users.

 

Hyderabad Information Technology and Engineering Consultancy City (HITEC City) and Gachibowli saw a similar trend, seeing a strong rental as well as capital value growth. 

In the Mumbai Metropolitan Region (MMR), capital values in Chembur and Mulund grew by 53 per cent and 50 per cent respectively, while rental appreciation was lower at 46 per cent and 32 per cent.

 

Commenting on the reason, Anuj Puri, chairman at Anarock group, said that capital values have followed a trajectory of rapid appreciation between 2021 to 2023, followed by steadier gains as new supply hit the market and buyers became more price sensitive.

 

“In the early recovery years, annual rental increases of 12 to 24 per cent were common in prime employment hubs. By H12025, rental growth has moderated nationally to 7 to 9 per cent, which is still ahead of consumer inflation, but a lot more sustainable,” he added.

 

Rental income trumps capital appreciation  

 

While average capital values rose faster than rental values in NCR, MMR, and Hyderabad, the reverse trend was observed in Pune, Kolkata, and Chennai.

 

In Pune’s Hinjewadi, rental values appreciated by 60 per cent, compared to a 40 per cent rise in capital values.

 

Similarly, capital appreciation in Kolkata’s Eastern Metropolitan Bypass was just 25 per cent between the end of 2021 and mid-2025, lower than the 53 per cent rental value growth over the same period.

 

In Kolkata’s satellite city Rajarhat, rental values grew by 40 per cent, outpacing capital appreciation of 37 per cent over the period.

 

Puri added that the trend is expected to sustain with average housing price growth for 2026 to range between 6 to 7 per cent and rents likely to rise 7 to 10 per cent, both outpacing inflation.

 

“Micro markets tied to major infrastructure completions (such as metro lines in Bengaluru and Mumbai, expressways in NCR, and IT park expansions in Hyderabad and Pune) are best placed to sustain above-average gains,” he added.