Hyderabad’s real estate market is experiencing a remarkable shift as a surge in demand for luxury homes is reshaping the preferences of homebuyers. According to the latest Homebuyer Sentiment Survey for the first half of 2024, an impressive 45 percent of respondents are now inclined towards homes priced between ₹90 lakh and ₹1.5 crore, a significant increase from just 27 percent during the pre-Covid era. This evolving sentiment highlights a clear transition towards larger, more upscale properties, as buyers increasingly prioritise spacious living environments over the affordability of compact units.
This burgeoning interest in luxury real estate comes as dissatisfaction with affordable housing options has been on the rise. The survey revealed that 53 percent of those looking at affordable housing expressed disappointment with their choices, primarily due to issues surrounding project locations, low construction quality, and the small size of units. Homebuyers are evidently seeking more than just a roof over their heads; they desire homes that provide comfort and a quality lifestyle, which affordable housing has often failed to deliver. The trend indicates a paradigm shift, with more individuals opting for high-end homes that offer better amenities and living conditions.
In Hyderabad, the appeal of larger homes, particularly 3BHK units, is evident, with over 50 percent of respondents now favouring this layout. This trend is mirrored in other urban centres like Chennai and Bengaluru, reflecting a collective desire for spacious living arrangements. Furthermore, the thriving rental market has become a crucial aspect of this luxury boom, as approximately 57 percent of residential investors are now focusing on properties that can generate steady rental income. This financial incentive further underscores the attractiveness of investing in premium real estate, aligning with a broader trend of urban migration and growing rental demands in India.
Moreover, the upscale property market in Hyderabad is witnessing a rise in the popularity of villas and row houses, which offer potential homeowners the privacy and space they crave. Interestingly, the interest in residential plots is also on the upswing, with around 27 percent of property seekers expressing a preference for this option. This indicates that buyers are not just looking for homes but are also interested in building their own spaces, reflecting a desire for customization and personalisation. As urban areas continue to expand and evolve, the focus on sustainable, spacious living solutions will play a pivotal role in shaping the future of Hyderabad’s real estate landscape, making it an exciting space for both investors and homeowners alike.
