South Hyderabad sees a decline in real estate prices
The Hyderabad real estate market in 2024 presents a tale of contrasting fortunes. While the overall city saw a moderate 8% increase in residential property prices, significant regional disparities have emerged, especially between the southern and northern/eastern parts of the city. South Hyderabad, traditionally a preferred choice for homebuyers due to its developing infrastructure and proximity to key commercial hubs, witnessed a dip in residential prices. Conversely, parts of eastern and northern Hyderabad have emerged as hotspots, with certain areas showing impressive year-on-year (YoY) growth.
One of the standout performers is LB Nagar, located in eastern Hyderabad, where property prices surged by 11% over the course of the year. This area, increasingly sought after for its accessibility and ongoing infrastructure developments, has attracted a substantial number of homebuyers and investors. Alongside LB Nagar, Kompally, another prominent locality in the northern part of the city, recorded a 10% rise in residential property prices, further reinforcing the trend that buyers are looking towards emerging neighbourhoods rather than traditional residential hubs.
The overall average residential price in Hyderabad has reached Rs 5,974 per sq ft. However, the uneven growth across regions highlights the growing divergence in buyer preferences. Areas like LB Nagar and Kompally have been driving this upward trajectory, with well-planned urban developments and improved connectivity making them desirable for both end-users and investors. On the other hand, South Hyderabad’s dip in prices could be attributed to various factors, including slower infrastructure development in certain pockets and changing buyer preferences.
In terms of price brackets, residential properties in the Rs 10-20 million range have continued to dominate the market in 2024. This segment, catering to middle and upper-middle-class buyers, has witnessed steady demand, particularly in more developed and connected areas. As urbanisation continues, buyers are gravitating towards properties that offer better amenities, robust transport networks, and access to key social infrastructure, which are abundant in the emerging parts of the city.
Sustainability and the Real Estate Trend
Sustainability continues to play a crucial role in shaping the preferences of modern homebuyers. As the real estate market diversifies, buyers are now placing a premium on areas that not only offer better infrastructure but also reflect sustainability in their development models. The rise of eco-friendly projects, especially in growing areas such as LB Nagar and Kompally, speaks volumes about the industry’s shift towards sustainability. Projects that incorporate green building certifications, renewable energy solutions, water conservation systems, and waste management are increasingly in demand.
South Hyderabad, on the other hand, while experiencing a price dip, could benefit from focusing on sustainability to regain traction. For instance, adopting green building codes and investing in improving urban green spaces can enhance the area’s appeal, particularly for eco-conscious buyers looking for an environmentally responsible living space. These steps, coupled with smart urban planning, could bring the south side of Hyderabad back into the spotlight, driving demand and stabilising prices.
From a civic standpoint, urban development in Hyderabad is beginning to focus on multi-modal transport systems and affordable housing solutions. These urban issues play a significant role in shaping residential price trends. For instance, areas with better access to public transportation and improved road infrastructure have naturally seen price increases, whereas regions lacking in these areas are lagging behind. Sustainable urban development is key to ensuring that the city remains livable and affordable for future generations, while also addressing the pressing challenges posed by rapid urbanisation.
As we look ahead, Hyderabad’s residential market is poised for continued growth, but with an increasing focus on balanced development. The success of certain areas in 2024 can serve as a model for other regions to follow, ensuring that all parts of the city benefit from both economic growth and sustainability.
