Premium Housing Defies Market Headwinds
Hyderabad's luxury real estate segment shines brightly in a challenging market. While overall residential sales dipped 6% in the first half of 2025, premium properties priced at ₹1.5 crore and above saw remarkable growth.
The city sold 8,205 premium housing units in H1 2025, marking a strong 17% year-on-year increase. This surge has changed market dynamics, with luxury homes now making up 49% of total sales compared to just 40% the previous year.
Tech Boom Drives Luxury Demand
The ₹1.5-3 crore segment led this transformation, showing a 28% growth compared to H1 2024. Analysts highlight several key factors driving this:
- Limited inventory creates scarcity-driven demand
- Growing affluence among tech professionals
- Preference for larger homes with premium amenities
- Investment appeal in uncertain economic times
Western Suburbs Lead Growth
Western suburbs are the main growth engine for Hyderabad's premium housing market. This area's success comes from its strategic location as the city's tech hub, housing HITEC City and the Financial District.
The region offers world-class infrastructure, prestigious schools, and established high-income neighbourhoods, attracting wealthy property seekers.
Market Resilience Despite Challenges
In July 2025, overall registrations dropped 30% to 6,128 units. Yet, the weighted average property price rose 14% year-on-year. Value appreciation shows the market is shifting toward premium housing despite lower transaction volumes.
Samantak Das, chief economist at JLL, stressed that "premium housing is now a defining force in Hyderabad's property landscape," with affluent buyers seeing these properties as secure investments during uncertain times.
This trend positions Hyderabad uniquely among major Indian metros, where southern cities like Chennai have also shown growth while traditional markets face headwinds.