In the last three to four years, Hyderabad has experienced significant growth. The city has witnessed a surge in new project launches and a substantial increase in demand. Talking about the key drivers of Hyderabad's residential real estate market, Mudit Gupta, Director & City Lead, articulated, "Rising homeownership demand, affordability across various housing segments, evolving developer strategies, and increasing migration due to the city's expanding IT, fintech, and pharmaceutical sectors have collectively contributed to the market’s strong growth."
Adding his views, C. Shekar Reddy, CMD, CSR Estates Ltd, National Vice President, CII Indian Green Building Council, and Past National President CREDAI, said, "Before 2006, Hyderabad faced challenges with unauthorized constructions, legal disputes, and a lack of clear occupancy regulations. To address this, developers introduced self-regulations, including mandatory setbacks, impact fees, and a 10% built-up area handover to local authorities, ensuring compliance and market stability. These policies fostered transparency, increased competition, and attracted global investors, making Hyderabad a structured and thriving real estate hub. Preserving these regulations while maintaining a balance between supply, demand, and affordability is crucial for sustaining long-term market growth."
Vijay Prakash, Head & Sr. Vice President - Business Development, Sales & Marketing, CYBERCITY Builders & Developers, added, "Last year, the market experienced a slight slowdown, primarily due to back-to-back state and central elections in 2020. Over the past year, there was a temporary decline in sales numbers; however, the market has shown signs of improvement in recent months. Notably, in the last two months, there has been a significant surge in demand for the luxury segment, and we anticipate a strong recovery in the near future. Additionally, innovative pricing strategies, including pre-EMI offers and flexible payment schemes, are being implemented to attract customers and maintain market competitiveness."
Hyderabad and Bangalore share similarities in their IT-driven growth, but they also have distinct differences. Elaborating on this, Arun Anand, Co-founder of Flow Realty India, shares that Hyderabad places a greater emphasis on real estate as an asset class, with a higher proportion of personal wealth invested in property compared to Bangalore, where investments are more diversified across equities and other financial instruments. Additionally, Hyderabad residents prefer larger, Vastu-compliant homes, whereas Bangalore has a greater acceptance of compact living spaces. This reflects the cultural distinctions between the two cities while balancing tradition and modernity.
This trend has contributed to a 20-25% increase in apartment sizes and property prices, said Dr C. Santhan Reddy, Director of Marketing, Sales, and CRM at ACE Ventures. "The Hyderabad real estate market has experienced a consolidation phase over the past year, following a period of significant growth in land prices and wealth generation. While the number of new projects has slowed since the elections and government changes, there is growing interest and planning, with an expected increase in new developments in the latter half of the year."
Govind Rai, Co-Founder of Insomniacs, shared, "The fundamental pillars of Hyderabad's growth, strong infrastructure, cost-effective business operations, and a skilled talent pool, remain firmly in place. As global companies establish their presence in the city, migration continues to rise, and Hyderabad has effectively absorbed this influx of people from other states. Despite a 25% reduction in available inventory, the city's inventory overhang remains lower than other metropolitan areas, indicating a resilient real estate market. Given these trends, project absorption will continue, and property prices are expected to follow an upward trajectory, benefiting both developers and investors."
Consolidation & Opportunities
Like any other city, Hyderabad developers too are facing challenges related to regulatory approvals, labour shortages, and rising raw material costs. Y. Swapna Kumar, Managing Director, Honer Homes, stated, "While challenges such as labour availability and cost balancing exist, developers must strategically manage resources, pricing, and project positioning to ensure timely delivery and market competitiveness. The Floor Space Ratio (FSR) rule in Hyderabad was introduced to ensure compliance with building norms while preventing unauthorized developments. With unlimited FSI, developers are responsible for adhering to these guidelines, leading to a surge in vertical construction as the market expands. This transformation has given Hyderabad a modern skyline, resembling global downtowns, particularly along key entry points like the Outer Ring Road."
Vyoma Pandit, Co-founder of Flow Realty India, agreed, "The Hyderabad real estate market stands out for its unique supply and demand trends. The absence of Floor Area Ratio (FAR) regulations has led to abundant high-rise developments, ensuring a steady supply despite rising construction costs. In 2024, for the first time in years, new project launches declined by 25% compared to 2023. Additionally, there has been a noticeable shift in buyer preferences, with a growing demand for larger apartments of 2,000 square feet and above."
Sumanth Reddy, Chairman of the National Association of Realtors India & Managing Director of Realestta & India Institute of Real Estate, added, "I feel market consolidation is essential for long-term stability and sustainable growth. Hyderabad stands out as one of the most future-ready cities, with consistent infrastructure development over the past three decades, unlike other metropolitan areas facing saturation and expansion challenges. The city's proactive planning, including projects like the Outer Ring Road and Regional Ring Road, along with reliable water resources, positions it for sustained real estate growth. While temporary slowdowns may occur, Hyderabad remains a key market with strong potential for long-term investment and development."
C. Shekar Reddy stated, "The real estate industry continues to face multiple taxation challenges, including GST on immovable property, high cement taxes, and increased registration fees, which place an undue financial burden on homebuyers. The government should introduce regulatory measures to control price hikes in affordable housing, streamline digital approvals to reduce project delays and implement tax reforms to lower construction costs. Given the real estate sector's significant contribution to employment, infrastructure, and government revenue, policymakers must prioritize industry-friendly reforms to ensure sustainable growth and housing affordability."
- Economic stimulus, lower interest rates, and increased revenue for Indian IT and startup firms have led to a surge in housing demand.
- Developers are adopting strategic measures, such as better financial control and bulk material procurement, to secure cost advantages.
- Hyderabad continues to expand with tall buildings and IT hubs, but concerns about attracting skilled professionals remain.
- Hyderabad's real estate market accommodates a wide range of buyers, from the affluent elite to well-informed middle-class consumers who carefully evaluate value, resale potential, and rental returns
Sales & Marketing Trends
Hyderabad is increasingly being viewed as a growing investment hub, offering comparatively lower property costs than cities like Mumbai, with a strong potential for value appreciation. Regarding sales trends, the purchasing capacity of homebuyers in Hyderabad has increased significantly, with many now opting for larger apartments instead of smaller, more affordable units.
Pranjal Soni, Vice President - Sales & Marketing, Candeur Constructions Pvt Ltd, stated, "The market caters to a diverse range of buyers, from those seeking 1,200-1,900 sq. ft. homes to those investing in premium spaces exceeding 4,000 sq. ft., driven by the city's expanding IT sector and the presence of major multinational corporations. Additionally, the rental market has grown substantially, with areas like Kondapur commanding rents of Rs 60,000- Rs 70,000 per month."
Rahul Goyal, Co-Founder of Realatte, highlighted the clear market shift towards larger homes (2,000 sq. ft. and beyond), with developers prioritizing spacious layouts over high-volume construction, a trend expected to continue in the coming years. To stand out in Hyderabad's increasingly competitive market, developers and marketers must create distinct value propositions and adopt innovative strategies. From a marketing agency perspective, the recommended budget allocation is currently around 70% for print and outdoor advertising and 30% for digital channels.
Amit Baid, Founder of AB See Brand Advisory, added, "The overall direction of Hyderabad's real estate market remains strong. Homebuyers in Hyderabad primarily prioritise location, seeking proximity to their workplace to reduce commuting time. They also focus on value for money, preferring well-constructed, functional apartments over excessive luxury, with a growing demand for 2.5 BHK units for added flexibility. Additionally, buyers increasingly favour gated communities that offer security, ample amenities, and recreational spaces for all age groups, making them a more attractive choice over standalone buildings."
- Encouraging brands to invest in innovative digital content, such as human-centric video campaigns, remains a challenge in Hyderabad.
- Developers in Hyderabad currently lean towards a 50-50 split between outdoor and print, but the ideal mix should prioritise 70-80% digital marketing, 10-15% branding through human-led content, and 15% for outdoor advertising, with minimal reliance on print.
- Eastern Hyderabad remains more traditional than the West, where buyers rely on personal networks and prefer low-rise buildings, requiring a different media strategy.
- In Hyderabad, developers with extensive portfolios strategically allocate marketing budgets based on project scale and volume to ensure effective outreach.
