Hyderabad’s real estate market is undergoing a transformative shift, with high-end residential properties now accounting for over 50% of total residential sales. This significant trend, detailed in a recent report by CBRE South Asia Pvt. Ltd and CREDAI-Telangana, highlights a marked evolution in buyer preferences since 2022. Previously, high-end homes, defined as those priced between ₹1 crore and ₹2 crore, held only a 30% market share until 2021.
The report further delineates that the premium segment, comprising properties priced between ₹2 crore and ₹4 crore, alongside luxury residences costing over ₹4 crore, now contributes over 20% of new launches. This is a stark increase from less than 5% pre-pandemic, underscoring the rising allure of luxury living in the city. The trend is particularly striking, with high-end launches constituting 55-65% of the market since 2022, compared to a meagre share of under 20% prior to the COVID-19 pandemic. Conversely, the mid-segment market—covering properties priced between ₹45 lakhs and ₹1 crore—has seen a dramatic decline in sales share, plummeting to under 25% in the first half of 2024 from 50% before. Launches in this segment have also diminished, dropping to around 25% compared to 60-70% previously.
This preference shift towards high-end properties is primarily driven by rising disposable incomes and changing buyer aspirations for larger, more luxurious living environments. Demand for spacious units, particularly 3 BHK and 4 BHK apartments, has surged in western suburbs like Kokapet, Narsingi, and Tellapur. Developers are increasingly catering to this demand, focusing on homes that offer dedicated office spaces and recreational areas. Hyderabad’s luxury market is bolstered by heightened interest from domestic and international investors, including Non-Resident Indians (NRIs) and high-net-worth individuals (HNIs). The city’s robust economic growth—ranking among the top 65 wealthiest cities worldwide and as the 10th fastest-growing hotspot for millionaires—fuels this trend. Areas such as Jubilee Hills and Banjara Hills are witnessing intensified sales activities for properties exceeding ₹20 crores.
Hyderabad’s residential landscape demonstrates a dynamic growth trajectory, with the city representing 12% of the total housing stock among India’s top seven cities. Over the past ten quarters, the residential stock has expanded by 35%, with the top five developers contributing 23% to this growth. This expansion underscores the city’s increasing attractiveness as a preferred living destination, supported by its thriving economy and ongoing residential development. The upward trend in the high-end segment not only reflects changing demographics and income levels but also signifies a shift towards sustainable living options. Developers are increasingly prioritising eco-friendly designs and energy-efficient amenities in new projects, aligning with broader sustainability goals. This movement towards greener residential solutions bodes well for the future, ensuring that the city’s development aligns with environmental responsibilities while meeting the desires of its evolving population.
