Hyderabad Contributes ₹4 Lakh Crore to Real Estate
In 2024, Hyderabad cemented its position as a key player in India’s residential real estate sector, recording significant growth with over 0.7 lakh registered property transactions. This translated into an impressive contribution of Rs 0.4 lakh crore to the nationwide performance, according to a comprehensive report by Square Yards. The city emerged as a dominant force in the southern region, closely trailing Bengaluru in terms of transaction volume, underlining Hyderabad’s growing importance as a preferred real estate hub.
Nationally, the residential property market witnessed a marked increase in activity, with 5.77 lakh units transacted in 2024, reflecting a 4% rise compared to the previous year. The total transaction value exceeded Rs 4 lakh crore, representing a 2% year-on-year growth. Western cities, particularly Mumbai, Thane, Navi Mumbai, and Pune, continued to dominate, accounting for 61% of transactions and 69% of the total sales value. In the south, however, Bengaluru led with 0.8 lakh transactions, despite a slight dip caused by the introduction of E-khata regulations. Hyderabad followed closely, achieving 80% of Bengaluru’s transaction volume, signalling its growing appeal to both investors and homebuyers.
The report also shed light on the significant price growth across major cities, driven by robust demand for residential properties. Gurugram recorded a staggering 132% price increase over the last five years, largely fuelled by the demand for luxury housing. Hyderabad saw a more balanced 43% price growth, reflecting the city’s stable and sustainable market development. Other cities like Bengaluru and Pune also experienced substantial price hikes, with increases of 66% and 60%, respectively. This price growth indicates a clear demand for quality housing, with buyers increasingly seeking properties that offer both value and luxury.
In response to this surge in demand, developers across Hyderabad and other major cities launched 3.9 lakh new residential units in 2024, catering to the growing preference for gated communities and lifestyle-oriented properties. The strong demand was mirrored in the national housing sector, where over 4 lakh residential units were completed during the year. The confidence in the real estate sector was further reflected in the stock market, where the NIFTY Realty Index emerged as the top-performing sectoral index, registering a 40% gain year-to-date.
Looking towards 2025, Square Yards projected a promising outlook for India’s real estate sector, with developers set to launch over 3.6 lakh units in the coming year. This growth is supported by a robust pipeline of projects covering 300 million square feet, with Hyderabad’s real estate market expected to continue its upward trajectory. This sustained growth, combined with a focus on sustainable development, positions Hyderabad as a model for balanced, eco-friendly urban development in the future.
As Hyderabad’s real estate market continues to flourish, it represents a shift towards more sustainable and community-focused urban planning. The growing demand for eco-conscious living spaces, coupled with the city’s focus on infrastructure development, is positioning it as a leader in urban sustainability. This long-term growth strategy ensures that Hyderabad remains a strong contender for both residential and commercial investments, providing investors with an attractive and sustainable avenue for growth in the coming years.
In conclusion, the rise of Hyderabad as a dominant force in India’s residential real estate market is a testament to the city’s economic dynamism and evolving appeal. With developers increasingly focusing on lifestyle-oriented, sustainable properties and a strong market outlook for 2025, Hyderabad is set to maintain its position as a key player in the real estate sector, offering investors and homebuyers alike a secure and profitable future.
