Real estate winners: How infrastructure and jobs drove India’s top-performing micro markets

Between the end of 2021 and mid-2025, India’s most dynamic housing micro markets have delivered stellar returns for both homeowners and investors, according to new ANAROCK Research.

In some areas, property prices have nearly doubled, while in others, rental growth has far outpaced inflation. This surge has been driven by two key forces — robust employment-led demand and sustained infrastructure upgrades.

Together, these factors have created high-performing pockets where location dynamics, connectivity, and economic momentum fuel both capital appreciation and rental resilience.

ANAROCK tracked 14 of the country’s most active residential micro markets across Bengaluru, Hyderabad, Pune, NCR, MMR, Kolkata, and Chennai. The data reveals striking trends:

• Noida’s Sector-150 leads the nation with a 139% price surge, supported by greenfield planning, township projects, and strong investor demand.
  
• Bengaluru’s Sarjapur Road and Thanisandra Main Road posted 79–81% price gains, boosted by metro expansion and proximity to tech hubs.
  
• Hyderabad’s Gachibowli saw an 87% jump in capital values, with strong rental growth sustained by a deep IT employment base.
  

Nationally, the post-pandemic recovery from 2021 to 2023 was marked by rapid rental increases of 12–24% annually in prime job hubs. By H1 2025, rental growth had moderated to a more sustainable 7–9%, still above inflation.

Infrastructure-led markets — from metro-linked suburbs to expressway corridors — continued to outperform, even as overall momentum eased.

Outlook 2026: Growth follows infrastructure

Looking ahead, ANAROCK projects average housing prices to grow 6–7% annually through 2026, with rents expected to rise 7–10%. Both are likely to outpace inflation. According to Anuj Puri, Chairman, ANAROCK Group, “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.”

In the early recovery years, annual rental increases of 12–24% were common in prime employment hubs. By H1 2025, rental growth had moderated nationally to 7–9% — still ahead of consumer inflation, but far more sustainable.

In India’s real estate cycle, infrastructure is the catalyst for price growth, while employment hubs anchor rental demand. For investors, spotting the next wave of connectivity and job corridors will be key to moving from average returns to exceptional ones.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)