A view of apartment complexes in Bengaluru.
Credit: DH PHOTO/BH Shivakumar
Bengaluru: Even as average residential prices rise across cities, many peripheral areas of India’s top seven cities have seen higher price growth over the past six years than prime locations, according to an analysis by ANAROCK Group on Tuesday.
Bengaluru’s Gunjur, near Sarjapura, topped the list with average residential prices jumping 69 per cent from Rs 5,030 per square foot (sf) in 2019 to Rs 8,500 per sf in the latest July to September quarter (Q3 2024).
On the other hand, prime area Thannisandra Main Road saw a 62 per cent average price growth in this period from Rs 5,175 per sf to Rs 8,400 per sf in Q3 2024.
Another suburb, Devanahalli saw prices grow 49 per cent from Rs 4,982 per sf in 2019 to Rs 7,400 per sf in Q3 2024. Prime location Electronic City saw just 38 per cent price growth in this period, from Rs 4,658 per sf to Rs 6,450 per sf.
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, as per ANAROCK.
For example, Panvel in Navi Mumbai saw over a 58 per cent price appreciation from Rs 5,520 per sf in 2019 to Rs 8,700 per sf in Q3 2024. Prime area Worli only saw 37 per cent price growth in this period, from Rs 38,560 per sf in 2019 to nearly Rs 53,000 per sf in Q3 2024.
“The last few years have seen several luxury projects launched in peripheries to meet demand. Inevitably, average housing prices rose there. With sufficient land available in the peripheries, developers have zeroed in on them to launch large state-of-art projects there,” said Santhosh Kumar, Vice Chairman, ANAROCK Group.
Apart from this, improved connectivity and overall development in many peripheral areas have boosted their liveability.