Suburban Real Estate Demand Rises Amid Price Hikes in Major Cities

New Delhi, October 16, 2024: Magicbricks’ latest Housing Sentiment Index indicates a growing shift toward suburban and peripheral areas as property prices in major cities continue to rise. In Delhi, where the average residential rate has reached INR 18,012 psf, increased search activity is evident in Dwarka and Rohini, with prices climbing from INR 8,800 psf to INR 11,500 psf and INR 11,300 psf to INR 12,100 psf, respectively, over the past year.

Despite the rising demand and consequent price increase, suburban prices remain competitive compared to city averages, making them attractive investment destinations.

Similar trends are observed in Thane/ Navi Mumbai, where areas like Vartak Nagar and Dombivali have gained traction among homebuyers. In Vartak Nagar, property prices surged from INR 15,000 psf to INR 17,500 psf over the past year, exceeding the average rate of INR 13,165 psf in Thane. Dombivali saw an increase from INR 6,800 psf to INR 7,300 psf, while Taloja emerged as an affordable alternative with an average rate of INR 6,500 psf. However, they continue to present lucrative investment options as residential prices in Thane increased 14% in one year, to touch INR 13,165 psf.

In Chennai, the trend persists, with rising interest in Old Mahabalipuram Road (OMR) and Ambattur. Property prices on OMR rose from INR 5,800 psf to INR 6,400 psf, and Ambattur experienced a growth from INR 6,400 psf to INR 6,800 psf over the same period.

Hyderabad is also witnessing significant interest in suburban areas such as Medchal Highway and Miyapur, where the average residential rate is INR 6,500 psf, compared to the city average of INR 8,188 psf. The rising demand in these areas highlights a growing trend of buyers seeking affordability and investment potential in suburban markets.

The preference for peripheral markets is driven by increased infrastructure development, improved connectivity, and a desire for more spacious living options outside of densely populated city centers.

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