Hyderabad is experiencing a meteoric rise as one of India’s most prosperous and rapidly growing metros. This boom extends across residential and commercial sectors, and its influence is felt throughout Telangana. The city is attracting global attention as a hub for manufacturing, IT, and Information technology-enabled services businesses, and its real estate market shows no signs of cooling down. Let’s delve deeper into the factors driving Hyderabad’s real estate surge.
Data from the “Real Insight Residential – Annual Round-up 2023 (January–December)” report shows Hyderabad’s real estate market thrived in 2023. Hyderabad solidified its position as India’s second-biggest real estate hub with an impressive 49% annual growth in housing sales. Significantly, the latter half of the year saw a surge in activity, with over half of all sales happening in Q3 (14,191) and Q4 (20,491). Hyderabad’s residential real estate market capped off a robust year in 2023 with a staggering 98% surge in demand during the fourth quarter.
In a stellar year for Indian real estate, a report analyzing data from eight major cities revealed impressive growth rates. Ahmedabad emerged as the leader with a remarkable 51% surge in housing sales compared to the previous year. Hyderabad followed closely behind at 49%, showcasing the strong performance of these southern cities. Other major metros like Bengaluru (44%), Pune (33%), and Mumbai (29%) also saw significant growth. While some cities like Kolkata (16%), Delhi NCR (11%), and Chennai (5%) experienced more moderate increases, the overall national growth rate for housing sales was a healthy 33%.
Hyderabad’s real estate market defied early hurdles. Rising interest rates, construction costs, and global jitters threatened the boom, but the industry bounced back impressively. Two factors fueled this resilience: pent-up demand unleashed after the pandemic, pushing property sales to new highs, and the Reserve Bank of India’s decision to hold interest rates steady in April 2023, which gave buyers a much-needed confidence boost.
Real Estate Trends in Hyderabad
- Hyderabad’s real estate market bounces back as new project launches pick up steam, showcasing the city’s resilience.
- The mid-range market, priced between Rs 30 and 70 lakhs, is the sweet spot for new projects, capturing a dominant 55% of all launches.
- While 3 BHK apartments remain the preferred choice for Hyderabad homebuyers, affordability steers many towards 2 BHK units, demonstrating the influence of budget on housing decisions.
- Market dynamics suggest an upward shift in buyer preferences. This indicates that individuals previously considering two-bedroom units are now exploring the possibility of three-bedroom options.
- There is a sustained focus on affordable housing, with several developers launching projects targeted at this segment. The government’s incentives and policies to promote affordable housing have further boosted this trend.
- Co-living spaces are gaining popularity in Hyderabad, especially among young professionals and students. These spaces offer flexible and affordable accommodation options with shared amenities.
- The commercial real estate market in Hyderabad remains strong, driven by the IT sector. Areas like HITEC City, Gachibowli, and the Financial District continue to attract interest from companies looking for office spaces.
- The luxury housing segment is also seeing growth, with developers launching high-end projects in upscale neighborhoods like Banjara Hills, Jubilee Hills, and Nanakramguda.
- There is a growing trend towards sustainable and green buildings in Hyderabad, with developers incorporating eco-friendly features to attract environmentally conscious buyers.
- Rise of Co-working spaces continues to be in demand, catering to the needs of startups, freelancers, and small businesses looking for flexible and cost-effective office solutions.
- The real estate sector in Hyderabad is undergoing a digital transformation, with the adoption of technologies like virtual reality (VR) for property tours, online property portals, and digital payment systems.
- Aparna Constructions, Vasavi Group, Praneeth Group, Muppa Projects, Candeur Projects, Prestige Group, Vajra Builders, and Auro Realty are prominent names in Hyderabad’s real estate sector. These developers have launched residential projects targeting diverse segments, ranging from luxury to budget housing.
Hyderabad’s real estate market may see a slight dip due to ongoing elections, but builders remain confident in long-term growth. Development is ongoing across all areas (West, East, North) with key locations like Nallagandla, Tellapur, Isnapur, Kollur, Mallampet, Gandimaisamma, Pocharam, Kompally, Shaikpet, Tukkuguda, Gachibowli, LB Nagar, Pattancheru, Bachupally, Uppal, Narsingi attracting interest. Established builders are holding firm on prices, and the western corridor shows promise due to its migrant population. Hyderabad’s real estate market appears poised for a promising future. The city’s growth and development are projected to continue, with its real estate sector expected to flourish accordingly. For investors seeking lucrative opportunities, Hyderabad stands out as a compelling choice.