The answer to the ‘rent or buy’ question keeps changing as the Indian housing market evolves. Latest ANAROCK data finds that capital values in key micro markets of the top 7 cities have grown by a significant 128% between 2021-end and 2024-end, while rental values in many micro markets have appreciated less than the overall capital value growth.

“An analysis of the key micro markets in the top 7 cities shows that in major cities like Bengaluru, MMR, NCR and Hyderabad, average capital values rose higher than rental values between 2021-end and 2024-end,” says Anuj Puri, Chairman – ANAROCK Group. “On the other hand, localities in Pune, Kolkata and Chennai saw the reverse trend – rental values appreciated more than the capital values.”

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Top markets where capital value growth outpaced rental value growth – 2021-end to 2024-end:

* NCR’s Sohna Road saw capital values go up by 59% while rental values rose by 47%. Sector-150 in Noida saw capital values appreciate by a whopping 128% while rental values rose by just 66% in the period.

* In Mumbai’s Chembur, capital value growth was 48% while rental appreciation clocked in lower at 42%. In Mulund, rental values rose by just 29% while capital prices went up 43%.

* Hyderabad’s HITECH City and Gachibowli also saw similar dynamics – in HITECH City, rental value growth was 54% and capital appreciation was 62%; in Gachibowli, rental values rose 62% and capital values 78%.

* While Bengaluru’s Thanisandra Main Road saw capital values appreciate more (67%) than avg. rental values (62%) in the period, Sarjapur Road saw average monthly rental values increase more (76%) than capital values (63%).

On the other hand, key micro markets in Pune, Kolkata and Chennai saw higher rental values growth than the capital value appreciation between 2021-end to 2024-end:

* Pune’s Hinjewadi saw rental values appreciate by 57%, while capital values rose by just 37%. In Wagholi, rental value growth was 65% while capital values rose by just 37%.

* In Kolkata’s EM Bypass, rental value appreciation was 51%, while capital values rose by just 19% in this period. In Rajarhat, rental values grew by 37% while capital appreciation was 32%.

* Chennai’s Pallavaram recorded rental values growth of 44%, while capital values rose by 21%. in Perambur, rental values grew by 36% while capital values rose 23%.

The clear divergence between capital appreciation and rental growth in these areas indicates that homeownership is becoming more lucrative in key markets where property values are rising faster than rental yields. For investors, this suggests strong long-term returns in cities like Noida, Hyderabad, and MMR, where capital appreciation outpaces rental growth.

“More than ever, investors must align their strategy along very location-specific lines,” says Anuj Puri. “Those looking for long-term capital appreciation can target markets with high appreciation, while rental-focused investors should zero in on localities where rents are rising steadily. For homebuyers, it is extremely important to weigh property price trends against rental growth to understand if buying or renting makes more financial sense in each location.”

Commenting on the ANAROCK report, Sandeep Chhillar, Founder and Chairman, Landmark Group, said, “The Indian real estate market continues to favor homeownership over renting, with property ownership proving to be a stronger wealth-building tool. Over time, real estate assets appreciate, creating long-term financial security, whereas renting only offers temporary convenience. Hence, we see a shift in buyer sentiment, where both end-users and investors are prioritizing asset creation over leasing. The stability, control, and future returns associated with owning property make it a preferred choice in today’s dynamic market, reinforcing the long-held belief that real estate remains one of the safest investment avenues.”

Viineet Chellani, Founder and CEO, Asset Deals, said, “The latest ANAROCK report highlights that capital appreciation is outpacing rental income across key housing markets, including NCR. In regions like Gurugram and Noida, rising property values are driven by strong infrastructure growth, increased demand for premium housing, and steady investor confidence. While rental yields remain stable, buyers are prioritizing long-term value, especially in high-growth areas. With ongoing urban expansion and policy support, we anticipate this trend to continue, making real estate a strong investment choice.”

Sharing his perspective on the Sohna Road, Saurab Saharan, Group Managing Director, HCBS Developments, said, “As an emerging micro-market in Gurugram, such as Dwarka Expressway, Sohna Road has transformed into a thriving real estate hub, making property ownership an attractive proposition for buyers and investors. While renting may offer short-term flexibility, the real value lies in long-term ownership, where appreciation and security go hand in hand. With rapid infrastructure development and commercial growth in the region, we believe the demand for real estate will continue to rise, ensuring not only a stable future but also a valuable asset in a prime location.”

Vansh Kataria, Co-founder and Managing Director, Tirasya Estates, said that owning a property has always been synonymous with financial stability, and today’s real estate market further reinforces this belief.

“Renting may serve immediate needs, but homeownership provides a sense of permanence, asset appreciation, and long-term gains. With evolving urban landscapes and increasing demand for quality housing, owning a property offers both lifestyle benefits and future financial security, making it a prudent choice for anyone looking to build lasting wealth. Thus, we encourage buyers to look at real estate as an investment that goes beyond short-term convenience,” he added.