Cost of living in Hyderabad

We try to gauge how much money you may require every year, to have a decent living experience in Hyderabad, an old city that is witnessing a transformation due to the IT industry

Hyderabad, the capital of Telangana, was ranked as the best city in the country for the fifth year in a row, in Mercer’s Quality of Living survey in 2019. According to the India Cities Happiness Report 2020, after Ahmedabad, Hyderabad was the second-happiest city in the country. (The report points out age group, education and income level are overall positively related to happiness, while a person’s marital status is negatively related to happiness.)

This may prompt many of us to think about moving to that city. However, a crucial factor that contributes to any city’s livability, is how much money you may require every year, to have a decent living experience.

However, the economic prospects in Hyderabad might not be as bright as in neighbouring Bengaluru. According to a report by the Centre for Science and Environment (CSE), titled ‘State of India’s Environment in Figures 2021’, there is a lack of ‘economic opportunities in India’s state capitals’. While stating that only Bengaluru demonstrates a decent economic ability, four other state capitals (Chennai, Mumbai, Delhi and Hyderabad) provide middling economic opportunities.

At the same time, average property rates in the city are seen rising consistently. According to a recent report by the average annual value of properties in this southern market increased by 5% during the April-June period of 2021. With this, the Hyderabad market now has the highest average per sq ft price for under-construction properties.

Price growth: City-wise break-up

CityAverage price as on June 30, 2021 (in Rs per sq ft)Annual growth in %
MMR9,475No change
National average6,2343

 Source: Real Insight: Q2-2021

However, all factors considered,  Hyderabad is way more affordable that the four biggest cities in India, as far as the cost of living is concerned. Despite the city attaining global standards, in terms of infrastructure development and job creation, Hyderabad still remains comparatively affordable for the middle class.

Through this article, we try to develop an understanding about the cost of living in Hyderabad – an old city that is witnessing a transformation due to the IT industry.


Cost of living in Hyderabad

See also: Top IT companies in Hyderabad


Hyderabad rental market

Among the 248 cities surveyed by, an online database of location information with focus on life quality data, Hyderabad was counted among the least expensive cities, especially in terms of accommodation.


Average monthly rent in Hyderabad city centre

Apartment typeMonthly rental
Small apartmentRs 12,093
Mid-size apartmentRs 15,912
Large apartmentRs 19,731


Check out properties for rent in Hyderabad


Living cost in Hyderabad

Cost incurred onAverage expense
Fitness club membershipRs 1,591
Movie ticketRs 159
Internet connectionRs 700
Public transportRs 827
LunchRs 242
Domestic helpRs 6,000
Meal at mid-range eateryRs 850
Utilities billRs 2,000


Hyderabad housing market

The thriving technology and pharmaceutical sectors, contribute significantly to Hyderabad becoming a popular choice for job seekers. Nevertheless, there are other factors as well that influence buyers, investors, renters, senior citizens and vacationers, to move this over 400-year-old city, popularly known as the ‘city of Nizams’. The city has a mix of old-world charm and new-age vibrancy. Properties in Hyderabad have largely remained impervious to the slump in the residential real estate market.

Data available with show that housing prices in Hyderabad increased at a compounded annual growth rate of 7% between December 2015 and December 2019.

In spite of a nation-wide demand slowdown during the October to December period in 2020, the city of Nizams continued to buck the trend, witnessing consistent price growth. In Q1 CY2021, the average rate of newly-launched projects in this pharmaceutical hub increased by 5% year-on-year. Owing to a consistent increase in average rates, property prices in Hyderabad are at its highest level, currently. Bangalore and Chennai also witnessed a 2% annual increase in average values.

 Average property price in southern cities

CityAverage price per sq ft as on March 31, 2021Annual change
HyderabadRs 5,7115%
BangaloreRs 5,4503%
ChennaiRs 5,2763%


See also: Covid-19: How Coronavirus Is Impacting Indian Property Prices


Key demand drivers

Average annual salary: Rs 4.96 lakhs

Air quality index: 55-80

Infrastructure: 295 hospitals/215 colleges

Connectivity: International airport, operational metro


Safety in Hyderabad

The overall crime rate puts Hyderabad in position 74 of 266 Teleport Cities in a ranking for the safest cities.

Safety parameterValue
Gun ownership per 1,000 people4.20
Gun deaths per 1,000 people0.28


Check out the top posh areas in Hyderabad



Which are the most affordable big cities in India, cost-wise?

Numbers available with various platforms show that the cost of living is the lowest in Hyderabad, among India's big cities.

What is the average rate of property in Hyderabad?

Data available with show that the average rate of property in Hyderabad is Rs 5,318 per sq ft (as on June 30, 2020).


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