In the last quarter, the Hyderabad properties index experienced a 4 percent increase. With property values remaining relatively low, a growing number of residents are opting to upgrade to luxurious living spaces that now fit within their budgets. Consequently, there’s a significant demand surge for luxury properties within the Rs 45-85 lakh range.
Localities in proximity to business hubs, particularly Gachibowli, are witnessing robust performance in terms of both sales and lease activities. The convenience of living arrangements also plays a crucial role in this trend. Conversely, areas adjacent to busy thoroughfares, like the Outer Ring Road, aren’t faring as well, as there are ample options available throughout the city.
This consistent demand has triggered a 7 percent increase in property values in about 81 percent of local neighborhoods. Notably, premium areas such as Banjara Hills, Jubilee Hills, and certain sections of Madhapur have experienced significant hikes in rental standards. Meanwhile, reasonably priced properties near IT hubs have observed modest value increases. This shift is also leading to a rise in yields from investments in residential real estate.
With an average price of Rs 2,500 per square foot, Hyderabad remains the least expensive large real estate market in the nation. The West and East regions of Hyderabad are currently the most vibrant property markets, with demand and supply thriving there due to the presence of strong economic sectors.
Tissue concerns have previously hindered the Hyderabad property market; however, positive job forecasts and the city’s continued status as the joint capital for both Andhra Pradesh and the newly formed Telangana state for a minimum of 10 years have greatly improved consumer sentiment. As a result, search behaviors and transactions are robust, positively influencing property values across the region.