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Hyderabad Real Estate Market : An Overview

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Hyderabad is a bustling city that is seeing rapid growth and development in various industries, including real estate. Hyderabad real estate market has been exhibiting a remarkable resilience, making rapid strides even in the face of various impacting factors. With a positive outlook and a growing interest from property seekers, Hyderabad’s real estate sector is poised for further growth in the coming years.

hyderabad real estate market
Narisingi, ORR
The West Zone: The Heart of Hyderabad Real Estate Market Success Story

The west zone of Hyderabad has been the driving force behind the city’s real estate success story. This region has attracted not only local property buyers but also young investors from across the country and even the NRI community. Its charm has been so compelling that people from other states have started exploring the option of investing and acquiring property in the western parts of the city.

Locations like Tellapur, Kollur, Gandipet, and Narsingi have seen most of the development activity in recent years, according to a recent report by Knight Frank India. Tellapur, in particular, has transformed from being a little-known location to a bustling construction site with tall buildings popping up all around.

The Growth of Hyderabad’s Residential Market

Hyderabad’s residential market has seen a steady growth in recent years, with strong sales momentum recorded in 2022. The city recorded a 28% YoY growth in housing sales volume, accounting for 31,046 units. This was the highest number of sales recorded in the city since 2011.

Additionally, there was a substantial increase in new launches, with 43,847 units added in 2022. Developers have capitalized on the shift in home-buyers’ sentiments and have launched new projects in the city during the year. The average weighted prices for the region grew by 6% YoY.

Despite a sharp rise in interest rates during H2 2022, buyer sentiment continued to remain strong, according to a report by Knight Frank. The residential market recorded a sale of 16,353 units in H2 2022, registering a 32% growth over the same period the previous year. Total launches during the six months grew by 18% to 22,491, with 61% of these units launched in west Hyderabad.

West Hyderabad continued to have strong demand, accounting for 62% of all sales in H2 2022, as purchasers preferred to be close to the city’s commercial core and office centers, such as Hitec City, Gachibowli, and Nanakramguda. North Hyderabad also witnessed marginal growth in share of total sales, increasing from 18% during July-December 2021 to 19% during the same period in 2022.

Housing for Every Need and Pocket Size

Hyderabad offers a wide range of housing options to cater to the diverse needs and budget sizes of its residents. The city remains a strong market for mid-ranged housing, with the mid-segment of INR 50 lakh to INR 1 crore accounting for 45% of sales in the second half of 2022.

At the same time, the ticket size segment of INR 1 crore and above has gained traction, with its proportion of sales increasing from 19% in the first half of 2018 to the second half of 2022. The report by Knight Frank observed that the need to upgrade the family’s primary dwelling to meet the requirements of work and education from home has resulted in a substantial change in demand for ticket sizes higher than INR 50 lakh.

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