Hyderabad's Property Market Shifts: How Developers Are Adapting
The Numbers Behind the Decline
Hyderabad’s residential market saw a 9% year-on-year (YoY) drop in property registrations during June 2025, falling to 6,391 units from 7,056 in June 2024. Yet, transaction values rose, hitting ₹4,587 crore a 6% YoY increase. This paradox shows a shift toward higher-value properties, with homes priced above ₹1 crore now making up 21% of registrations (up from 14% in 2024).
Strategic Shifts in Developer Tactics
Faced with fewer transactions, Hyderabad’s developers are rethinking their strategies to attract buyers:
### Payment Flexibility
- Phased payment plans: Aligning with buyer liquidity cycles, allowing staggered payments over construction phases.
- Subvention schemes: Partnering with financial institutions to defer EMI payments, reducing upfront costs.
### Community-Oriented Developments Developers are investing in lifestyle infrastructure to set projects apart:
| Feature | Purpose |
|---|---|
| Wellness centers | Attract health-conscious buyers |
| Co-working spaces | Appeal to remote professionals |
| Child-centric facilities | Target families needing convenience |
The Rise of Luxury and Larger Homes
While 52% of sales remain in the sub-₹50 lakh segment, demand for premium properties is surging:
- Larger units: Homes between 1,000–2,000 sq. ft. dominate (67–68% of sales), driven by nuclear families seeking space.
- Ultra-luxury demand: Properties >2,000 sq. ft. now account for 17–18% of registrations, up from 16% in 2024.
Challenges and Opportunities
Affordable housing (₹50 lakhs–₹1 crore) faces competition from luxury segments, which now account for over half of total transaction value despite lower volume. Developers must balance mass-market appeal with niche offerings in premium categories.
Critical Insights:
- Affordable to Luxury Shift: Suburban demand for affordability competes with urban preference for luxury.
- Value vs. Volume: Property prices have increased, but annual sales have dropped by 8%, showing that higher costs may be affecting buyer demand.
- Regulatory Compliance: Compliance with RERA guidelines remains essential for project approvals.
The Road Ahead
Hyderabad’s market requires innovative buyer retention strategies, including bundled services (home automation, smart tech) and pastoral amenities (parks, recreational zones). Developers who adapt to buyer preferences for space, convenience, and exclusivity will thrive despite declining registrations.