Hyderabad’s real estate market is witnessing a notable trend, with South Hyderabad emerging as the most affordable area in the city, while demand for residential plots continues to grow. According to the Homebuyer Sentiment Survey for H1 2024, the average budget for a 2BHK flat in South Hyderabad ranges from Rs 45 lakh to Rs 55 lakh, with the per square foot rate standing at Rs 5,720. This makes the southern part of the city the most affordable for homebuyers, especially when compared to central Hyderabad, where the average price for similar properties is more than double.
The disparity between property prices in different zones of Hyderabad is stark, with central areas having the highest rates. The average budget for a 2BHK flat in central Hyderabad ranges between Rs 1 crore to Rs 1.5 crore, with a per square foot rate of Rs 9,450. In contrast, other zones such as East, North, and West Hyderabad offer slightly more affordable options, ranging between Rs 55 lakh and Rs 90 lakh. These statistics underscore a growing divide between affordable and premium housing markets in the city, shaping buyer decisions based on budget constraints.
In line with national trends, the demand for 3BHK units in Hyderabad is growing significantly. According to the survey, 54% of homebuyers now prefer 3BHK flats, a substantial increase from 41% in H1 2022. This shift in preference reflects the evolving priorities of buyers post-pandemic, as larger living spaces have become more desirable. Meanwhile, the demand for smaller units like 1BHK flats remains limited, comprising only 2% of total preferences. Residential plots have also gained traction, with 27% of buyers in Hyderabad showing a preference for this option. Major developers have responded by launching several residential plot projects to cater to this demand.
From a sustainability perspective, the preference for residential plots aligns with the desire for more spacious and eco-friendly living environments. As the demand for independent homes like villas and row houses also grows, Hyderabad’s real estate market is increasingly shifting towards low-density developments that offer green spaces. This trend towards plots and larger homes highlights an important shift towards sustainable living, with an emphasis on reducing environmental footprints through better land utilisation and environmentally conscious construction practices.
