Hyderabad’s residential real estate market recorded transaction values exceeding ₹4,000 crore in May 2025, marking its first rise this year. Spurred by robust demand in the luxury segment, housing sales showed a 2 per cent year-on-year and 5 per cent month-on-month increase. This revival underscores renewed buyer confidence, with sustainability and equitable development now taking root alongside economic momentum.
Knight Frank India’s latest report highlights that May saw 2 per cent growth in registrations compared to last year and 5 per cent growth month-on-month. This uptick was led by premium homes, priced above ₹1 crore, whose registrations surged 37 per cent year-on-year. Though premium units represented only 19 per cent of total registrations, they made up 49 per cent of the total deal value. This marks a significant shift in buyer behaviour, signalling growing openness to larger and higher-quality residences.
Despite strong performance in the luxury segment, affordable housing—priced below ₹50 lakh—and the mid-range category of ₹50 lakh to ₹1 crore, while numerically dominant saw reduced volumes. This suggests a possible bifurcation in buyer preferences, as those entering premium brackets now command a larger share in value, while mass-market demand stabilises. The appeal of larger residences continues, with 67 per cent of new homes sized between 1,000–2,000 sq ft and the share of homes above 2,000 sq ft rising to 18 per cent.
Geographically, transaction activity was concentrated: Ranga Reddy led with 48 per cent of registrations, followed by Medchal-Malkajgiri at 37 per cent and Hyderabad district at 15 per cent. This distribution indicates thriving suburban growth, potentially driven by new infrastructure and enhanced connectivity. From a sustainability standpoint, the demand pattern suggests opportunities to integrate green practices and energy-efficient design into suburban developments.
Hyderabad’s first market recovery of the year comes amid India’s broader economic rebound, backed by low interest rates and improved buyer sentiment. Analysts note growing confidence among higher-end buyers, who are returning to the market after a cautious pause. Incorporating energy-efficient features and green certification in new projects can enhance long-term value while supporting carbon-neutral urban growth.
