Hyderabad’s real estate landscape is witnessing a pronounced shift towards high-end residential properties, according to a joint report by CBRE South Asia Pvt. Ltd and CREDAI-Telangana. Since 2022, the high-end segment, defined as properties priced between INR 1 crore and INR 2 crore, now constitutes over 50% of the city’s residential sales.
This marks a substantial increase from the 30% share observed until 2021. The premium segment, comprising properties priced between INR 2 crore and INR 4 crore, along with luxury homes priced above INR 4 crore, now accounts for over 20% of new launches, a significant rise from less than 5% before the pandemic. The shift towards higher-end residential options is evident from the 55-65% share of high-end launches since 2022, compared to less than 20% before the COVID-19 pandemic. In stark contrast, the mid-segment market, encompassing properties priced between INR 45 lakhs and INR 1 crore, has seen its sales share plummet to under 25% in the first half of 2024, down from 50% until 2021. This decline is mirrored by a drop in mid-segment launches to approximately 25%, compared to around 60-70% before the pandemic.
The rising preference for high-end residential properties is driven by increased disposable incomes and evolving buyer preferences for larger, more luxurious living spaces. The demand for spacious units, such as 3 BHK and 4 BHK apartments, has particularly surged in the western suburbs of Hyderabad, including areas like Kokapet, Narsingi, Tellapur, Manikonda, and Nanakramguda. These regions have become focal points for developers, who are responding to the increased demand for homes with dedicated office spaces and recreational areas.
Hyderabad’s luxury residential market is buoyed by heightened interest from domestic and international investors, including NRIs and high-net-worth individuals (HNIs). The city’s robust economic performance—ranking among the top 65 wealthiest cities globally and as the 10th fastest-growing millionaire hotspot—further fuels this trend. Significant developments in upscale neighbourhoods such as Jubilee Hills, Banjara Hills, Hitech City, Raidurg, and Kokapet have catered to this growing demand, with sales activity intensifying for properties priced above INR 20 crores.
The city’s residential market reflects a dynamic growth trajectory, with Hyderabad accounting for 12% of the total housing stock among India’s top seven cities. Over the past ten quarters, Hyderabad’s residential stock has expanded by 35%, with the top five developers contributing 23% of this growth. This expansion underscores the city’s escalating appeal as a desirable living destination, supported by its burgeoning economic vitality and increasing residential development.
