Hyderabad real estate remains the second most expensive real estate market in India after Mumbai.
The latest affordability Index Report was released by Knight Frank India at the end of July 2024 and according to it, Hyderabad stands relatively the same as last year.
Homebuyers in the city still spent 30% of their income on mortgage payments, showing that while housing prices have increased, so have people’s salaries.
Affordability remains the same in Hyderabad Real Estate:
Although Hyderabad is holding the second position of being the most expensive residential market, this hasn’t affected affordability factors.
In Hyderabad real estate, since 2022, the EMI-to-income ratio has remained unchanged for the past two years.
From the period 2010 to 2021, the affordability, which is calculated on the EMI-to-Income ratio, has seen an increase. This improved slightly from 2022.
According to the research, Hyderabad’s average price per square foot in 2010 was Rs 2,728. This number increased gradually to Rs 4,500 by 2019 and then to Rs 5,681 in the first half of 2024, meaning that it has increased by 26% since 2019 and 5% from H1 2023.
Below is the EMI-to-income ratio for different cities in India:
| City | 2010 (percent) | 2019 (percent) | 2020 (percent) | 2021 (percent) | 2022 (percent) | 2023 (percent) | H1 2024 (percent) |
| Mumbai | 93 | 67 | 61 | 52 | 53 | 55 | 51 |
| Hyderabad | 47 | 34 | 31 | 28 | 30 | 31 | 30 |
| NCR | 53 | 34 | 38 | 28 | 29 | 30 | 28 |
| Bengaluru | 48 | 32 | 28 | 26 | 27 | 28 | 26 |
| Chennai | 51 | 30 | 26 | 24 | 27 | 28 | 25 |
| Pune | 39 | 29 | 26 | 24 | 25 | 26 | 24 |
| Kolkata | 45 | 32 | 30 | 25 | 25 | 26 | 24 |
| Ahmedabad | 46 | 25 | 24 | 20 | 22 | 23 | 21 |
On the affordability index, Knight Frank India Chairman and Managing Director Shishir Baijal said that it remains crucial to sustaining home buyer demand and sales on which the nation’s overall economy depends.
He added that ‘As the income level increases and overall economic conditions improve, the financial standing of end-user becomes much stronger to make long term financial commitment towards asset creation. ’Given the RBI’s estimate of 7. 2% GDP growth for FY 2024.
Hyderabad Real Estate-Top Choice for NRIs
For NRIs Hyderabad real estate investment is one of the top ones, compared to other cities, even though Hyderabad is the second most expensive real estate market in India.
The maximum of the NRI flow towards the investment in the Hyderabad real estate sector comes from the US, Canada, the Gulf, Europe, etc.
NRIs have a great interest in real estate investment compared to investments in stocks and mutual funds. The other cities which bring in NRI investment in real estate are Bengaluru and Delhi.
What’s ahead for the Hyderabad Real Estate Market?
The homebuyers’ demand for homes will continue to show a positive trend, essentially due to the affordability factors.
Rising income levels accompanied by a robust economy will further boost buyers’ and builders’ confidence to encourage investments in the housing sector.
Even though Hyderabad’s real estate market is the second most expensive in India, prospective homeowners can still afford it. Investors in Hyderabad’s residential real estate sector should continue to find the market appealing due to a stable combination of growing income and interest rates.
You can check on flats for sale in Hyderabad in Roofandfloor, click here!