Hyderabad is rapidly emerging as one of the country’s leading metropolitan cities, driven by strong socio-economic growth, emergence of the city as a preferred IT hotspot, and rapid infrastructural development. Furthermore, the city’s favorable business environment and thriving startup ecosystem are contributing significantly to its real estate sector’s success. This is attracting individuals in search of employment and entrepreneurship opportunities from across the country, leading to the rising share of HNIs, thereby creating a significant demand for luxury and uber-luxury housing in the city.
According to property consultant Knight Frank India’s India Real Estate Office and Residential Market H2-2024 report, properties priced above Rs 10 million accounted for 63% of the total sales, up from 52% in H2 2023. The Rs 10-20 million segment saw a remarkable increase, rising from 38% in H2 2023 to 46% in H2 2024, representing a 28% YoY growth in sales.
Hyderabad: A Resident’s Paradise
According to Mercer’s Quality of Living Ranking, Hyderabad was touted as the best Indian city to live in from 2015 to 2019 in a row, followed by in 2023 fuelled by factors such as political stability, healthcare, education, infrastructure, socio-cultural environment and political instability.
This is seen in the backdrop of the number of UHNIs rising by 50.1 per cent to 19,908 in 2028 from 13,263 in 2023 as per Knight Frank’s flagship study. Driven by rising incomes, evolving buyer preferences, and a strong appetite for upscale amenities, demand for differentiated ultra luxury homes in India are at an all time high.
Tier-I cities like Mumbai, Delhi-NCR, Bengaluru, and Hyderabad have solidified their position as the premier hubs for uber-luxury housing in India. In Hyderabad, this demand for ultra luxury housing has been concentrated in West Hyderabad constituting 63% of total sales in H2 2024, up from 61% in H2 2023. This sustained demand can be attributed to the area’s proximity to major office hubs like HITEC City and the Financial District, coupled with its strong infrastructure.The city, also known as the ‘City of Villas’, continues to witness strong demand for both villas as well as luxury high-rises overlooking India’s newest metropolis.
Toppling Mumbai, Bengaluru and Chennai in realty preferences
Hyderabad offers all the advantages of living in a prime metro city but in an affordable manner as compared to Mumbai, Delhi-NCR or Bengaluru. As per Anarock, the average property prices in the fourth quarter of last year across Mumbai, New Delhi, Bengaluru were Rs 16,600 per square feet, Rs 7,550 per square feet and Rs 8,380 per square feet respectively. In this backdrop, Hyderabad’s average property prices hovered at Rs 7,300 per square feet in Q4 2024, comparatively lower than the top metros despite appreciating 27%, from Rs 5,750 per square feet in 2023. This price advantage makes Hyderabad’s real estate market quite alluring for developers, homebuyers, retail and institutional investors.
(The article is authored by Madhusudhan G, CMD, Sumadhura Group)
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