Hyderabad: Over the past three years, the property market in Hyderabad has experienced a significant transformation, with mid-segment residential sales declining notably and high-end segment sales increasing sharply.
Additionally, Hyderabad’s substantial growth over the last decade has positioned the city as a preferred destination for the premium and luxury housing market.
Hyderabad’s Residential Renaissance: Transformation in Housing Landscape
The latest report from CBRE South Asia Pvt. Ltd, titled ‘Hyderabad’s Residential Renaissance: Dissecting the City’s Transforming Housing Landscape,’ released this week, highlights a significant transition in the city’s property market. According to the report, sales in the high-end residential segment (Rs. 1 crore to Rs. 2 crore and above) have risen to over 50 percent since 2022, up from 30 percent until 2021. Furthermore, launches in this segment now account for 55 to 65 percent of new properties, a substantial increase from less than 20 percent pre-pandemic.
This growth in the high-end market comes at the expense of the mid-segment (Rs. 45 lakh to Rs. 1 crore), which has seen a decline in both sales and launches. In H1 2024, mid-segment sales dropped to less than 25 percent, down from 50 percent until 2021. The share of new launches in this segment has also decreased to 25 percent, compared to 60 to 70 percent in the pre-Covid period.
Historically dominated by the mid-end segment, Hyderabad’s residential market has shifted towards the high-end segment, driven by rising disposable incomes and evolving buyer preferences. Notably, the premium (Rs. 2 crore to Rs. 4 crore) and luxury (Rs. 4 crore and above) segments, which accounted for less than 5 percent of overall launches until 2021, have surged to over 20 percent of total launches in 2023 and the first half of 2024.
This growth is primarily attributed to significant developments in the western part of the city, particularly in areas like Kokapet, Narsingi, Tellapur, Manikonda, and Nanakramguda. Developers have responded to post-Covid demand for spacious living environments by launching more 3 BHK, 4 BHK, and larger units, with Kokapet (Neopolis) and Nanakramguda being notable hotspots.
The surge in Hyderabad’s luxury residential market is driven by increased interest from domestic and international investors, including NRIs and HNIs. The strengthening US Dollar has also fueled demand for premium properties. The city’s growing economic stature, ranking among the top 65 wealthiest cities globally and the 10th fastest-growing millionaire hotspot, further underscores this trend.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa at CBRE, remarked, “Hyderabad’s residential market has dramatically transformed, establishing itself as one of India’s most dynamic and sought-after real estate destinations. This evolution is marked by a surge in residential property launches and a steady rise in demand, driven by affordable housing options, a high quality of life, and a vibrant influx of professionals.”
Gipson Paul, Senior Executive Director and Head – Hyderabad, CBRE India, added, “The pandemic has profoundly reshaped this landscape, emphasizing security and access to essential amenities. Consequently, there is a marked preference for branded residences, penthouses, sky villas, and independent floors within meticulously planned townships.”
