Hyderabad's residential market is experiencing a sustained premiumisation trend, according to the latest assessment by Knight Frank India. High-value home sales are rising, with an increasing demand for larger living spaces and enhanced amenities. Even though overall registrations remained stable, the total value of homes registered increased by 5 per cent YoY. The Hyderabad residential market spans four districts, Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy, and it includes transactions from the primary and secondary real estate markets.
Properties priced under Rs 50 lakh dominated registrations. However, a strong shift toward premiumisation has emerged, with homes priced at Rs 1 crore and above increasing by 12 per cent YoY during January 2025, reflecting a growing preference for higher-value properties.
The majority of the registered properties in Hyderabad were concentrated in the range of 1,000 to 2,000 square feet (sq ft), accounting for 69 per cent of all registrations. Units sized >2000 sq ft accounted for 14 per cent of the total registrations compared to the 13 per cent registered during January 2024.
At the district level, Medchal-Malkajgiri accounted for 45 per cent of property registrations, closely followed by Rangareddy at 41 per cent. Hyderabad district contributed the remaining 14 per cent of total registrations.
The weighted average price of transacted residential properties witnessed a YoY increase of 3 per cent during January 2025. Among the districts, Medchal-Malkajgiri experienced the highest increase of 11 per cent YoY.
Beyond the concentration of bulk transactions, homebuyers also purchased plush properties that are larger in size and offer superior amenities. The top five deals in January 2025 involved properties exceeding 3,000 sq ft and valued above Rs 5.5 crore. Three transactions were recorded in West Hyderabad, while two were in Central Hyderabad.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, said, "Hyderabad's residential market sales remained steady in January 2025, reflecting sustained buyer confidence. Notably, demand for high-value homes continues to rise, with registrations for properties priced above Rs 1 crore surging by 12 per cent YoY. This trend highlights the growing preference for premium living, driven by strong economic fundamentals and evolving lifestyle aspirations."
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