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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 PropTiger.com 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
|City||Average price as on June 30, 2021 (in Rs per sq ft)||Annual growth in %|
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.
See also: Top IT companies in Hyderabad
Hyderabad rental market
Among the 248 cities surveyed by Teleport.org, 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 type||Monthly rental|
|Small apartment||Rs 12,093|
|Mid-size apartment||Rs 15,912|
|Large apartment||Rs 19,731|
Living cost in Hyderabad
|Cost incurred on||Average expense|
|Fitness club membership||Rs 1,591|
|Movie ticket||Rs 159|
|Internet connection||Rs 700|
|Public transport||Rs 827|
|Domestic help||Rs 6,000|
|Meal at mid-range eatery||Rs 850|
|Utilities bill||Rs 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 Housing.com 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
|City||Average price per sq ft as on March 31, 2021||Annual change|
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.
|Gun ownership per 1,000 people||4.20|
|Gun deaths per 1,000 people||0.28|
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 Housing.com show that the average rate of property in Hyderabad is Rs 5,318 per sq ft (as on June 30, 2020).