Peripheral areas in top Indian cities outshine prime locations in housing price growth

Mumbai (The Uttam Hindu): Some outlying, peripheral areas in top seven cities in India have witnessed better housing higher price growth over the past six years than many prime locations, a report said on Tuesday.

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, according to latest Anarock research.

“In Delhi-NCR’s peripheral Noida Expressway, average residential prices rose 66 per cent in last six years – from Rs 5,075 per square feet in 2019 to Rs 8,400 per sq. ft. in Q3 2024,” said Santhosh Kumar, Vice Chairman, Anarock Group.

Prime area Raj Nagar Extension saw 55 per cent growth in this period – from Rs 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 per cent jump in average residential prices,” Kumar added.

Bengaluru’s peripheral area Gunjur saw average residential price take a significant 69 per cent while prime area Thannisandra Main Road, on the other hand, saw a 62 per cent average price growth in this period.

The last few years have seen several luxury projects launched in these peripheries to meet demand.

“Inevitably, average housing prices rose there. With sufficient land available in the peripheries, developers have zeroed in on them to launching large state-of-art projects there,” said Kumar.

Improved connectivity has made it feasible for buyers to live in larger societies with generous green open spaces. This trend has become very prevalent after the COVID-19 pandemic.

Mumbai Metropolitan Region's (MMR) peripheral area Panvel saw over 58 per cent price appreciation in the last 6 years. Prime area Worli, on the other hand, saw 37 per cent price growth in this period.