Hyderabad – Residential Real Estate Overview

Residential sales for Hyderabad continue to grow despite the state facing the highest consumer price inflation in the country during the period under review. Sales have increased by 5% YoY during H1 2023 to 15,355 units, which is the highest growth recorded by a city amongst the top eight cities under our coverage for the period under review. During COVID-19 and post the ebbing of the pandemic, the sale volume continued to remain relatively steady in Hyderabad as home-buyer sentiments remained sanguine.

West Hyderabad continues to dominate the preference of homebuyers in H1 2023 and accounted for a significant 60% of the total sales activity. Proximity to office locations like HITEC City, Financial District, Madhapur, Gachibowli, Nanakramguda and Kondapur coupled with the presence of robust infrastructure have been the major pull factors for homebuyers in West Hyderabad. 

A longer-term trend indicates a gradual fall in the share of the <INR 5 mn segment from 29% in H1 2018 to 13% in H1 2023. The mid segment of INR 5-10 mn constituted 42% of the overall sales during H1 2023. Since H1 2018, this segment’s share has remained within the range of 42% to 52%.