Housing prices in Bengaluru and Hyderabad have surged by more than 80% in certain areas since 2020, driven largely by demand from IT/ITeS professionals, according to a recent report by Anarock. This sharp rise in property values highlights the robust real estate growth in these tech-centric cities.

Bengaluru’s Bagaluru recorded the highest price appreciation at 90% between the end of 2019 and June 2024, with Whitefield, a major tech hub, seeing an 80% increase. Sarjapur Road, another prominent area, experienced a 58% rise in residential property prices. Similarly, in Hyderabad, Kokapet saw an 89% jump in prices, while Bachupally and Tellapur recorded increases of 57% and 53%, respectively.

The demand for residential real estate in these southern cities is predominantly fueled by IT/ITeS professionals who remained relatively unaffected by the pandemic. The COVID-19 crisis prompted many millennials, who previously favored renting, to purchase homes, leading to a significant surge in demand. Developers responded to this increased demand by raising prices, even as inflationary pressures drove up construction costs.

Anuj Puri, chairman of Anarock, noted that prices had remained relatively stable in these cities prior to the pandemic due to structural reforms such as RERA, GST, and the IL&FS crisis. However, post-COVID, with demand skyrocketing, developers seized the opportunity to increase prices, particularly from 2022 onwards.

Over the last five years, the top seven cities in India collectively saw a 44% price appreciation, with Hyderabad leading the way with a 64% increase, followed by Bengaluru at 57%. In contrast, Kolkata witnessed the lowest price growth at 25%, while the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) both recorded 48% increases during this period.