Noida, Gurugram lead capital appreciation and increase in rental yields in residential real estate

New Delhi: Noida and Gurugram lead capital appreciation by 125% and 117% while rental yields there also rose by 70 bps and 80 bps as the Indian residential real estate market’s rapid emergence as a dual-return investment proposition presents investors with the alluring proposition of both significant capital appreciation and improving rental income potential across the country's leading cities.

Anarock’s analysis of rental yield and capital values data from the top 11 housing markets in the country between 2019 and Q2 2026 shows that both capital values and rental yields grew almost in tandem in those cities. Rising property prices no longer come at the expense of rental returns.

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“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,” said Anuj Puri, chairman - Anarock Group.

In Noida, average capital prices increased from Rs 4,795 per sq. ft. in 2019 to Rs 10,780 per sq. ft. in Q2 2026; rental yields improved from 3.2% to 3.9% while in Gurugram saw capital prices rise from Rs 6,150 per sq. ft. to Rs 13,350 per sq. ft. while rental yields increased from 3.5% to 4.3%

“This shift is driven by a combination of factors, including infrastructure development, expansion of employment hubs, growth of GCCs, and sustained migration into the country’s metros. Improved connectivity, in particular, has played a profound role by expanding India’s employment centres map and benefiting a wider palette of residential markets,” Puri said.