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Advisor Network Economic & Finance Market Overview Real Estate State & Urban

NCR Sees Highest Land Appreciation Since 2019, 38% Rise on Yamuna Expressway

  • Avg. prices of plots on Yamuna Expressway were INR 1,600/sft in 2019 – now up to INR 2,200/sft; plot prices also rose in Greater Noida West (36%) & Neharpar in Faridabad (29%)
  • Among the major 7 cities, NCR’s top 3 localities saw maximum rise in average plot prices
  • COVID-19 strengthened demand for land for long-term investment, plotted developments also gain traction in Bengaluru, Hyderabad, Chennai, Pune, MMR & Kolkata
  • Many large developers now actively selling plotted developments, and are preferred by buyers

Gurgaon, 21 July ’22: Plotted developments have gained significant traction as an investment asset class in the post-pandemic world. Since 2020, several large and listed developers have been offering plots, leading to growth in demand and prices across major micro markets in the top cities.

ANAROCK data shows that the top 7 cities (Bengaluru, Chennai, Hyderabad, Pune, Kolkata, MMR and NCR) have witnessed new plotted developments supply since 2020 and saw decent land appreciation over the last 2.5 years.

Out of the multiple micro markets across top 7 cities, the top 3 with maximum land appreciation are all in NCR:

  • Yamuna Expressway saw the highest rise of 38% in average plot prices since after announcement of International Jewar Airport – from INR 1,600/sft in 2019 to INR 2,200/sft by H1 2022-end
  • Greater Noida (West) saw a 36% rise in avg. plot prices – from INR 3,300/sft by 2019-end to INR 4,500/sft by H1 2022-end
  • Neharpar in Faridabad saw a 29% rise in the same period – from INR 3,500/sft by 2019-end to INR 4,500/sftby in H1 2022-end

Santhosh Kumar, Vice Chairman – ANAROCK Group, says, “Plots have become a hot ticket for property investors on the post-pandemic marketplace. Undoubtedly, well-chosen land offers higher returns on investment when compared to apartments. Average plots prices across India’s major cities, and especially in NCR, rose considerably over the last two-and-half years.”

Unlike earlier, many large developers now offer this property type and have increased the overall supply of this typology. This is no longer the stronghold of smaller, unorganized players seeking to liquidate land they cannot develop. With the advantage of branding, plotted developments have become respectable, and most buyers prefer to deal with the bigger names.

Today, this option is being offered by developers like DLF Ltd., Raheja Group, Godrej Properties, Century Real Estate, Puravankara’s Provident Housing, Shriram Properties, Goel Ganga, TVH, and Alpha Corp, among others.

City-wise Trends

Average prices of plots across multiple localities in the top 7 cities have witnessed good growth since 2019:

  • In Bengaluru, the top 3 micro markets to see land appreciation since 2019 are Devanahalli (18%), Attibele(24%) and Doddaballapur Road (18%)
  • In Chennai, Poonamallee saw 22% growth in average plot prices, followed by Tambaram with 25% growth, and Navallur with 20% growth
  • In Hyderabad, avg. plot prices in Medchal, Adibatla and Ghatkesar saw 21%, 24% and 26% growth respectively
  • In Kolkata, Howrah saw a 20% rise in plot prices, Barasat-Madhyamgram saw a 18% increase, and a 24% price rise in Garia
  • In Pune, the top 3 micro markets to see plot appreciation are Hinjawadi with 24%, Chakan with 18% and Manjri with 18% price rise
  • In MMR, the top 3 markets to see plot appreciation are Shahapur with 22%, Boisar with 18% and Neral with 17% price rise

Cities

Top Micro Markets

Avg. Prices of Plots (2019) INR/sq. ft.

Avg. Prices of Plots (H1 2022) INR/sq. ft.

% Change (2019 Vs 2022)

Bengaluru

Devanahalli

2,450

2,900

18%

Attibele

1,700

2,100

24%

DoddaballapurRoad

2,000

2,350

18%

Chennai

Poonamallee

2,700

3,300

22%

Tambaram

2,650

3,300

25%

Navallur

2,500

3,000

20%

NCR

Neharpar, Faridabad

3,500

4,500

29%

Greater Noida West

3,300

4,500

36%

Yamuna Expressway

1,600

2,200

38%

Hyderabad

Medchal

2,100

2,550

21%

Adibatla

1,650

2,050

24%

Ghatkesar

1,350

1,700

26%

Kolkata

Howrah

980

1,180

20%

Barasat-Madhyamgram

1,100

1,300

18%

Garia

1,450

1,800

24%

Pune

Hinjawadi

1,700

2,100

24%

Chakan

1,020

1,200

18%

Manjri

1,700

2,000

18%

MMR

Shahapur

490

600

22%

Boisar

1100

1300

18%

Neral

600

700

17%

See Also: Housing Sales Moderate in Q2 2022, MMR and NCR Outperform Other Cities

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