How Noida, Gurugram beat Bengaluru, Hyderabad in property price growth but lagged on rental yield since 2019

Property prices in Gururgam increased from an average ₹6150 per sq ft in 2019 to ₹13,350 per sqft in Q2 2026, representing a rise of around 117%. Capital appreciation in Noida was even higher during the same period, at 125%, with average property prices increasing from ₹4795 per sq ft in 2019 to ₹10,780 per sq ft in Q2 2026.

Compared with these two cities in Delhi-NCR, the capital appreciation in Bengaluru and Hyderabad has been lower since 2019. Bengaluru witnessed only 90% price rise in this duration, from ₹4975 per sq ft to ₹9450 per sq ft, while Hyderabad saw a capital appreciation of 93% from ₹4195 per sq ft to ₹8090 per sqft.

Rental yield in Gururgam increased by only 0.8 percentage points, from 3.5% in 2019 to 4.3% in Q2 2026. In Noida, the rental yield rose by 0.7 percentage points, from 32.% to 3.9%, during the same period.

However, the rental yield growth in Bengaluru and Hyderabad has been higher since 2019.

Data shows that both Hyderabad and Bengaluru recorded a 1 percentage point increase in rental yield between 2019 and Q2 2026.

What about other cities?

The following tables shows capital appreciation and rental growth data for 11 cities, including the four cities discussed above.

What do these numbers suggest?

Most residential property buyers are concerned about two things: how the price of a property may appreciate in the future and the rental yield it can generate. While no one can predict future returns with certainty, historical data can provide some indication of potential gains, albeit with no guarantee of future performance.

There are some interesting observations from Anarock Research that investors may take note of:

• 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.

• Distinct residential investment markets now offer different combinations of capital appreciation and rental income growth.

• Noida and Gurugram deliver exceptional capital appreciation alongside improving rental yields, while Bengaluru and Hyderabad combine near doubling of capital values with the sharpest improvement in rental yields.

"Both cases highlight the role of employment growth, technology, and GCC expansion in driving both ownership and rental demand," ANAROCK Research said.