A recent report by ANAROCK Property Consultants reveals a striking trend: peripheral areas in India’s top cities have often outperformed prime locations in residential price growth over the past six years. While prime locations saw steady appreciation, outlying areas benefited from untapped potential, improved connectivity, and large-scale development. Key markets such as Bengaluru, NCR, and MMR highlight the widening price appreciation gap, with peripheral areas demonstrating remarkable growth. However, this trend is not universal, as some prime areas in cities like Hyderabad still maintain dominance due to their lower base prices and strategic importance.

Bengaluru: Gunjur Leads Peripheral Growth

1. Peripheral Area Outshines Prime Location
Bengaluru’s Gunjur saw a massive 69% price growth, with prices increasing from Rs 5,030 per sq. ft. in 2019 to Rs 8,500 per sq. ft. in Q3 2024. This outpaced the 62% growth of the prime Thannisandra Main Road, where prices rose from Rs 5,175 per sq. ft. to Rs 8,400 per sq. ft.

2. Devanahalli vs. Electronic City
Another peripheral area, Devanahalli, experienced 49% growth, reaching Rs 7,400 per sq. ft. in 2024 from Rs 4,982 in 2019. In contrast, Electronic City, a prime location, saw just 38% appreciation, with prices rising from Rs 4,658 to Rs 6,450 per sq. ft.

NCR: Noida Expressway and Dwarka Expressway Soar

1. Noida Expressway Shines
In NCR, the Noida Expressway recorded 66% price growth, from Rs 5,075 per sq. ft. in 2019 to Rs 8,400 in 2024. Meanwhile, Raj Nagar Extension, another prime location, saw a modest 55% growth, increasing from Rs 3,260 to Rs 5,050 per sq. ft.

2. Dwarka Expressway Outperforms
The standout performer in NCR was the Dwarka Expressway, which achieved a staggering 93% appreciation, with prices climbing from Rs 5,359 per sq. ft. in 2019 to Rs 10,350 in 2024.

MMR: Panvel Gains Momentum

1. Peripheral vs. Prime Areas
In the Mumbai Metropolitan Region (MMR), peripheral Panvel saw prices rise 58%, from Rs 5,520 per sq. ft. in 2019 to Rs 8,700 in 2024. Prime locations like Worli and Lower Parel registered 37% and 49% growth, respectively, during the same period.

2. Virar Emerges
Another peripheral area, Virar, matched Panvel’s growth at 58%, with prices increasing from Rs 4,440 per sq. ft. to Rs 6,850 over six years.

Pune: Peripheral Wagholi Surpasses Wakad

1. Wakad Sees Modest Growth
Pune’s prime area Wakad recorded 27% appreciation, with prices rising from Rs 6,530 per sq. ft. in 2019 to Rs 8,300 in 2024.

2. Wagholi Outpaces
Peripheral Wagholi saw stronger growth at 37%, with prices increasing from Rs 4,820 to Rs 6,600 per sq. ft. over the same period.

Kolkata: Joka Leads Prime Areas

1. Joka Sets the Benchmark
In Kolkata, prime Joka recorded an impressive 51% growth, with prices rising from Rs 3,415 per sq. ft. in 2019 to Rs 5,150 in 2024.

2. Madhyamgram and Behala Follow
Peripheral areas like Madhyamgram and Behala posted price appreciations of 43% and 35%, respectively. Prime Rajarhat, however, lagged with a 29% increase.

Chennai: Navalur Outpaces Prime Areas

1. Navalur Leads Growth
Chennai’s peripheral Navalur saw prices rise 54%, from Rs 3,955 per sq. ft. in 2019 to Rs 6,080 in 2024.

2. Anna Nagar and T Nagar Trail
Prime areas like Anna Nagar and T Nagar registered lower growth rates of 35% and 31%, respectively, during the same period.

Hyderabad: Prime Areas Dominate

1. Gachibowli and Kondapur Shine
Hyderabad’s prime areas like Gachibowli and Kondapur outperformed with 86% price growth, driven by lower base prices. Gachibowli rose from Rs 4,775 per sq. ft. in 2019 to Rs 8,900 in 2024, while Kondapur climbed from Rs 4,620 to Rs 8,600 per sq. ft.

2. Peripheral Areas Lag
Peripheral areas like Kompalli, LB Nagar, and Tellapur trailed behind, reflecting lower demand compared to prime zones.

Conclusion: What’s Driving the Growth?

1. Peripheral Areas Gain from Connectivity and Development
Improved infrastructure, large-scale projects, and increased land availability have boosted the appeal of peripheral areas, especially post-pandemic. Developers have launched luxury projects, enhancing liveability and attracting buyers.

2. Prime Areas Show Stable Appreciation
While peripheral areas exhibit higher growth percentages, prime locations remain valuable due to their established infrastructure and enduring demand.