Are Homes in this Budget Category Redefining Hyderabad's Residential Market? Find Out More

Fuelled by a dynamic economic environment, particularly the flourishing IT sector, Hyderabad has drawn a large number of professionals seeking enriching career opportunities from across the country. This influx of talent has generated a surge in demand for high-end residential properties, setting the wheels of real estate development in motion across the urban expanse.

Which budget category is driving demand in Hyderabad?

The majority of units sold in the recent quarter, Q2 2023, was observed to be in the price bracket of INR 1 crore and above. It accounted for an impressive 50 percent share of the total number of residential units sold during the period.

This trend suggests that despite current economic fluctuations, a substantial portion of buyers in Hyderabad’s residential market are willing to invest in properties that offer premium features, amenities, and an elevated lifestyle. The city’s reputation as a burgeoning IT and business hub might contribute to this inclination towards higher-priced properties, as professionals pursue homes that align with their aspirations. Of late, the wide acceptance of remote work has also been motivating purchasers to choose expansive and modern outfitted housing properties.

Changing demographics, work arrangements and lifestyle aspirations spur luxury homes sales

The evolving demographics of Hyderabad's population have played a pivotal role in the expansion of the luxury residential market. The city's growing reputation as a cosmopolitan centre has attracted a diverse mix of individuals, including expatriates and well-travelled professionals. These individuals often seek homes that match their international experiences and aspirations. As a result, there has been a growing demand for residences that offer top-notch amenities, along with utilitarian services and exclusivity. Moreover, with individuals devoting extended periods to their residences due to modern work arrangements, the significance of homeownership has increased manifold.

Not surprisingly, developers have expanded their collection of upscale residences, in response to the demand spurred by the city's thriving IT industry and fast-paced urban way of life.

A substantial share of 61 percent of the total newly launched residential units in Q2 2023, fell in the price range of over INR 1 crore in city, signifying developers’ recognition of the prospects held by this housing segment.

Larger homes witnessing increased buyer demand

Given the higher price bracket, the distribution of housing unit sales in Hyderabad during Q2 2023 indicates a notable inclination towards larger living spaces, with 45 percent of the units sold led by 3 BHK homes. This signifies a substantial demand for spacious homes that offer versatility and ample room for families towards their living arrangements.

Following closely, 2 BHK homes captured a significant share of 41 percent of the total sales. With families today seeking residences that can accommodate both work and lifestyle needs, they value spaces that provide flexibility and can adapt to their changing needs over time. As such, the demand for larger homes aligns with the modern homeowner's quest for functionality, convenience, and the ability to personalize their living spaces.

Conclusion

The growth of the luxury residential market in Hyderabad is a testament to the city's evolution as a dynamic and cosmopolitan centre. Factors such as economic growth, changing demographics, hybrid/remote work, and infrastructure development - have all contributed to the rise in demand for upscale living spaces. As the city continues to gain global recognition, the luxury residential market is set to flourish, catering to the needs of homebuyers who seek an exclusive lifestyle.

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