3BHK Homes Take the Lead in Hyderabad’s Residential Market – Identifying the Key Hotspots

The residential market in Hyderabad has experienced significant growth in recent years. A positive business environment, driven by a thriving IT sector, has resulted in a rise in job opportunities, drawing a substantial number of professionals to the city. Consequently, there has been an increased demand for high-quality residential properties, prompting real estate development throughout the city.

Occupying a prominent position among the nation’s top eight cities, Hyderabad played a crucial role by contributing a substantial portion, representing 14 percent of total sales and 17 percent of newly launched residential units in the third quarter of the year.

3 BHK Homes Take the Lead in Both Sales and New Supply

The third quarter of 2023 saw 3 BHK units becoming the most sought-after configuration in Hyderabad, comprising 49 percent of the total sales. The appeal lies in the practicality and spaciousness of these units, making them a preferred choice among homebuyers and professionals seeking additional space for convenience or a home office. Following closely were 2 BHK units, constituting 33 percent of sales in Q3 2023.

Meanwhile, the majority of the new supply during this period was dedicated to 3 BHK apartments as well, commanding a substantial 74 percent share of the total new residential units introduced to the city’s market. This trend suggests developers are strategically responding to the evolving preferences and lifestyle choices of potential homebuyers in Hyderabad, who have increasingly been shown to favour luxurious and comfortable living spaces.

Budget Categories Tend to Incline Towards the Upper Range

Not surprisingly, given the dominance of 3 BHK homes, a substantial share of 82 percent of the total newly launched residential units in Q3 2023, fell in the price range of over INR 1 crore in city, signifying developers’ recognition of the prospects held by this housing segment. On the sales front, too, residences priced in the budget category of INR 1 Crore and above emerged as the predominant choice, constituting a considerable 60 percent of the total units sold in this period.

Which Locations Saw the Highest Number of Sales and New Launches?

Hyderabad saw 14,190 housing units sold and around 20,480 new housing units launched in Q3 2023, bringing the cumulative sales and new supply figure for the first nine months of 2023 to 32,090 units and 50,370 units respectively.

As the city undergoes ongoing expansion due to heightened interest in its real estate, notably in the western and northern regions, a considerable portion of the new supply during Q3 2023 was concentrated on micro-markets such as Kukatpally, Medchal, and Bowrampet. Simultaneously, the highest sales volume was predominantly observed in Tellapur, Kokapet, and Kukatpally.

These residential areas are feasibly situated in the western and northern regions of Hyderabad, and command prices in the range of INR 5,000/sqft to INR 7,000/sqft. With the IT industry thriving in the area, the surge in professionals seeking housing close to their workplaces has heightened the need for residential properties in these localities. Residing in proximity not only minimizes commuting time and stress for these professionals but also creates chances for networking and social interaction with peers who share similar interests. This, in turn, fosters a sense of community and mutual support.

Outlook

The expansion of the upscale housing sector in Hyderabad reflects the city's transformation into a vibrant and cosmopolitan hub. The residential neighbourhoods mentioned earlier, experiencing heightened demand and increased supply traction in Hyderabad, present a comprehensive appeal, addressing the varied needs and preferences of a diverse range of homebuyers. Going forward, the continuous investments by the government in essential infrastructure initiatives like the Metro Rail and the Regional Ring Road are expected to further boost the city's attractiveness.

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