ANAROCK's study of 11 cities found that India's top housing markets registered growth in both capital values and rental yields between 2019 and the second quarter of 2026, with rental growth increasingly keeping pace with capital appreciation. The study noted that, while rents have traditionally lagged behind capital gains in many markets, a number of leading residential areas are now showing stronger rental momentum. Anuj Puri, chairman of ANAROCK Group, said that this pattern indicates rental growth has become substantial enough in several cities to offset the impact of steep capital value increases.

Noida and Gurugram emerged as the leaders in capital appreciation, with values rising 125 per cent and 117 per cent respectively, and rental yields improving by 70 basis points and 80 basis points. Bengaluru, Hyderabad and Delhi recorded the sharpest gains in rental yields, each posting an increase of 100 basis points between 2019 and Q2 2026. Bengaluru and Hyderabad combined these rental gains with capital value growth of around 90 per cent, while Delhi posted a 47 per cent rise in capital values.

The research characterised Mumbai and Delhi as resembling mature markets, where rental yields strengthened more than capital values over the period under review. By contrast, Chennai and Kolkata showed relatively limited expansion, with capital values up 47 per cent and 45 per cent respectively and rental yields rising by 55 basis points and 60 basis points. Improved connectivity and the expansion of employment centres were cited as contributing factors benefiting residential demand in these regions.

Puri attributed the broader shift to infrastructure development, the spread of employment hubs, growth of global capability centres and sustained migration into metropolitan areas as key drivers of both capital and rental growth. The combined movement in prices and yields creates a dual-returns proposition that appeals to investors seeking income as well as capital appreciation. The study suggests that rental growth is now an important counterbalance to sharp capital value appreciation in many of the country's leading housing markets.