Hyderabad’s Real Estate Sector Reaches Record ₹58,481 Crore in H1 2024
Hyderabad has established itself as India’s most vibrant property market, hitting an impressive ₹58,481 crore in residential sales during the first half of 2024. This leap marks a 257% increase compared to the same period in 2019, with luxury housing leading the growth trends. Let’s explore what’s driving this boom.
Key Drivers of Growth
1. Luxury Housing Boom Properties priced between ₹5-10 crore saw a 449% increase in demand, while ultra-luxury homes (above ₹10 crore) recorded a 63-fold rise. This shows a strong preference for larger, high-end residences with premium amenities and expansive living spaces.
2. IT Sector Expansion Hyderabad’s booming IT sector like Google, Microsoft, and Amazon—drives demand for residential and commercial spaces. Areas like HITEC City and Gachibowli remain hotspots, with office space leasing up 71% attracting IT professionals and tech startups.
3. Infrastructure-Driven Development The North-West region contributed 62% of total sales, thanks to improved connectivity via projects like the Outer Ring Road and upcoming Regional Ring Road. These strategic infrastructure upgrades boost accessibility to emerging residential hubs.
Market Segments in Focus
| Category | H1 2024 Performance |
|---|---|
| Under ₹1 Crore | Largest unit sales (steady demand) |
| ₹5-10 Crore | 449% increase in transactions |
| Above ₹10 Crore | 63-fold spike in ultra-luxury properties |
| Larger Homes (2,000+ sq ft) | 41% of total registrations vs <20% pre-2022 |
Government and Policy Support
- Registration Fee Reductions: Industry bodies like CREDAI Hyderabad and Telangana Realtors Association push for a 2% cut in registration fees to boost buyer activity.
- Investor-Friendly Policies: Transparent regulations and high-quality developments attract NRIs, who account for 25% of luxury purchases.
Why 2025 Continues to Show Promise
Infrastructure-Driven Hotspots:
- Kokapet: Close to IT hubs and metro connectivity drives demand.
- Tellapur: Affordable luxury options appeal to first-time buyers.
- Narsingi: Budget-friendly housing with improving infrastructure.
Shifting Buyer Preferences:
- Bigger Homes: 3BHK units dominate, reflecting post-pandemic lifestyle changes.
- Premium Locations: Prices in city centers (₹8,000-12,000/sq. ft.) contrast with outskirts (₹5,000/sq. ft.).
Challenges and Opportunities
The market faces inventory absorption issues, with existing stock projected to deplete within 16 months at current sales rates. Developers are prioritizing luxury supply (70% of new launches), which may test affordability limits if prices escalate further. Balancing demand with sustainable supply chains and buyer-friendly incentives is key to monetizing Hyderabad’s real estate potential.
As GCC expansions and IT growth continue, Hyderabad’s ability to blend luxury aspirations with infrastructure-driven accessibility positions it as India’s most resilient metro market.