A notable trend has emerged, indicating a movement towards suburban and peripheral regions as property values in major urban centers escalate. In Delhi, where the average residential price has soared to Rs 18,012 per square foot, there is a marked increase in search activity in areas such as Dwarka and Rohini. Over the past year, prices in Dwarka have risen from Rs 8,800 per square foot to Rs 11,500 per square foot, while in Rohini, they have increased from Rs 11,300 per square foot to Rs 12,100 per square foot, as reported by the latest Housing Sentiment Index from Magicbricks.
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 Rs 15,000 psf to Rs 17,500 psf over the past year, exceeding the average rate of Rs 13,165 psf in Thane.
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Dombivali saw an increase from Rs 6,800 psf to Rs 7,300 psf, while Taloja emerged as an affordable alternative with an average rate of Rs 6,500 psf. However, they continue to present lucrative investment options as residential prices in Thane increased 14% in one year, to touch Rs 13,165 psf.
In Chennai, the trend persists, with rising interest in Old Mahabalipuram Road (OMR) and Ambattur. Property prices on OMR rose from Rs 5,800 psf to Rs 6,400 psf, and Ambattur experienced a growth from Rs 6,400 psf to Rs 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 Rs 6,500 psf, compared to the city average of Rs 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.
Commenting on the findings, Keshav Mangla, General Manager Business Development, Forteasia Realty Pvt Ltd, said the trend of shifting to the suburbs’ property market in India indicates a different expression of the homebuyer’s culture of ‘value-seeking’.
“In Delhi, for instance, the average residential cost heads north to Rs 18,012 per square foot, and regions like Dwarka and Rohini are witnessing such demand. These suburbs are a discomfort zone from having priced at from Rs 8,800 to Rs 11,500 and from Rs 11,300 to Rs 12,100, respectively, over the last one year. The transition to peripheral regions is driven not solely by cost savings; equally significant is the perspective of buyers who consider long-term implications. Investing in properties near these areas proves advantageous, as the substantial price disparity between these locations and central Delhi offers compelling justification. Furthermore, ongoing infrastructure development is effectively bridging the gap between the city center and suburban areas,” he added.
Gunjan Goel, Director at Goel Ganga Development, said, “The Mumbai Metropolitan Region showcases the growth of suburban real estate in India. Thane and Navi Mumbai have emerged as new focus areas with Vartak Nagar and Dombivali attracting potential buyers. A huge increase in rates from Rs 15000 to Rs 17500 for Vartak Nagar, when Thane’s own average stands at Rs 13165, shows how fast the area is developing. Dombivali’s augmentation from Rs 6800 to Rs 7300 motivates the customers as it offers good potential at a reasonable rate. Taloja is available at a price of Rs 6500 which will be within the reach of the first time home buyers. This suburban shift has the characteristic of being driven by what are termed as reasonable prices, better facilities and improvement in chances of profits which is evidenced by Thane’s 14% appreciation in the housing market over the one year period only.”
Real estate development in Hyderabad is also increasingly shifting towards the suburbs, particularly along Medchal Highway and Miyapur, which have gained significant popularity.
“These suburban areas are currently valued at an average rate of Rs 6,500 per square foot, presenting an attractive alternative compared to the city’s average of Rs 8,188 per square foot. This price disparity is prompting both end-users and investors to migrate towards these peripheral markets. The trend is further enhanced by the ongoing development of IT corridors in Hyderabad and various planned connectivity initiatives. Buyers are drawn to the prospect of larger homes and the potential for property appreciation as these regions evolve. This movement towards the suburbs not only addresses the affordability concerns of home buyers but also fosters a decentralized growth pattern for the city, leading to the emergence of new economic hubs outside the traditional city center,” said Aman Gupta, Director of the RPS Group.
LC Mittal, Director, Motia Group, said there exists a notable suburban inclination within the Chennai real estate market, particularly evident in areas such as OMR and Ambattur, which have shown significant activity.
“The price per square foot in OMR has risen from Rs 5,800 to Rs 6,400, while Ambattur has seen an increase from Rs 6,400 to Rs 6,800, indicating a growing appeal for these outlying regions. This trend can largely be attributed to the flourishing IT corridor along OMR and the industrial expansion in Ambattur. Homebuyers are drawn to the opportunity of acquiring larger residences at more affordable prices compared to central Chennai. Additionally, this suburban migration reflects a shift in lifestyle preferences among homeowners, who seek to balance urban amenities with reduced congestion in their living environments, a trend that has been accelerated by the adoption of work-from-home practices in the aftermath of the pandemic,” he added.