Top Housing Markets Delivered Up To 125% Appreciation, Higher Rental Yields, Says Anarock Report

The Indian residential real estate market is increasingly emerging as a double-return investment opportunity, with investors benefitting not only from strong capital appreciation, but also from rental yields.

According to the latest analysis by Anarock Research, the country’s top housing market has witnessed a unique trend where property prices and rental yields have grown simultaneously between 2019 and the second quarter of 2026. Traditionally, rising property prices tend to put pressure on rental yields because rents sometimes fail to keep pace with the capital values. However, the latest data collected from 11 major residential markets suggest that this relationship is changing, which is driven by strong economic growth, infrastructure expansion and sustained demand for housing.

Noida and Gurugram Lead This Trend

Noida and Gurugram have emerged as the strongest performers in terms of capital appreciation. Average residential prices have increased by 125 per cent since 2019. Back then, the rates stood at Rs 4,795 per square foot; now the prices stand at Rs 10,780 per square foot in Q2 of 2026. At the same time, rental yield improved from 3.20 per cent to 3.90 per cent, which reflects a 70 basis points (bps) increase.

Gurugram followed Noida’s lead closely with average capital values climbing to 117 per cent from Rs 6,150 per square foot to Rs 13,350 per square foot during the same time frame. Rental yields in the city have also improved from 3.50 per cent to 4.30 per cent, registering a gain of 80 bps.

Bengaluru and Hyderabad Tell A Different Story

While Delhi-National Capital Region (Delhi-NCR) dominated price appreciation, Bengaluru and Hyderabad have stood out for delivering the sharpest improvement in rental returns. Bengaluru recorded a 90 per cent increase in average residential prices, from Rs 4,975 per square foot in 2019 to Rs 9,450 per square foot in Q2 2026. Its rental yield rose from 3.60 per cent to 4.60 per cent, marking a 100 bps increase in the region.

Hyderabad posted a similar performance; residential prices have surged 93 per cent from Rs 4,195 per square foot to Rs 8,090 per square foot. Rental yields climbed from 2.60 per cent to 3.60 per cent. According to the report, the strong technology-enabled ecosystem, growing GCCs, and robust employment growth in both cities have supported demand from homebuyers as well as tenants.

Among other markets, Mumbai has recorded a 64 per cent increase in the average residential prices, from Rs 17,845 per square foot to Rs 29,270 per square foot. Rental yields have improved to 80 bps with 4.30 per cent growth. Delhi witnessed the greatest improvements in rental yields, rising by 100 bps from 2.20 per cent to 3.20 per cent.

Anuj Puri, chairman, Anarock Group, said: “Rising property prices are generally inversely proportional to rental yields, exerting downward pressure on the latter. While rents often do not keep pace with capital appreciation, the country’s top residential markets are diverging sharply from this trend. Across many markets, capital values increased significantly since 2019, and rental yields also improved, indicating that rental growth is now strong enough to offset the impact of rising capital values.”

According to Anarock, the trend reflected the combined impact of infrastructure development, improved connectivity, expanding employment, and sustained migration, which has been a significant driver of real estate growth in India’s metropolitan cities.