by THO
Hyderabad’s high-end housing segment, comprising homes priced between ₹1-2 crore, has grown to account for almost half of the city’s residential sales and launches, a joint report by CBRE and CREDAI Telangana has said.
According to the report, sales in the ₹1-2 crore segment, which held a 30% share till 2021, have increased to grab over 50% share starting 2022. Meanwhile launches in the category accounted for 55-65% share since 2022, compared to less than 20% of new launches each year before the Covid-19 pandemic.
Simultaneously, the premium ( ₹2-4 crore) and luxury (above ₹4 crore) segments, previously accounting for less than 5% of overall launches until 2021, have grown to account for over 20% of the city’s total launches in 2023 and the first half of 2024, per the report.
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Incidentally, the share of sales in Hyderabad’s mid-segment ( ₹45 lakh to ₹1 crore) has dropped to less than 25% in H1 2024, from a 50% share until 2021. Consequently, the share of launches in the segment has dropped to approximately 25% compared to around 60-70% in the pre-Covid period, the report said.
This demonstrates a marked shift towards the high-end ( ₹1-2 crore) segment, driven by rising disposable incomes and evolving buyer preferences, the report noted.
“Telangana’s proactive policy landscape has been a key catalyst for Hyderabad’s burgeoning residential market…Expanded metro rail networks, improved connectivity through the ORR and RRR, and multi-modal transit systems have enhanced accessibility and boosted residential demand across the city,” said V Rajashekar Reddy, General Secretary, CREDAI Hyderabad.
Tracking the upward trajectory
Overall, Hyderabad accounts for 12% of the total housing stock among the top seven cities in India, per the report. Notably, a 35% share of the city’s residential stock has been introduced over the past ten quarters. The top five developers contributed 23% of this residential stock, the report said.
The city’s housing stock has grown 2.2 times in the past five years and 3.5 times over the past decade, per the report. Moreover, the units sold in the last ten quarters represent 30% of the city’s total absorbed stock, highlighting the dynamic growth in Hyderabad’s housing market.
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Hyderabad’s infrastructure growth fuels demand for upscale real estate projects
According to the report, upscale neighbourhoods such as Jubilee Hills, Banjara Hills, Hitech City, Raidurg, and Kokapet have witnessed heightened sales activity for properties priced above ₹20 crore.
It noted that Hyderabad’s robust economic growth, driven by a thriving private sector and improving infrastructure, positions the luxury residential segment for sustained expansion.
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“The city’s luxury residential market is experiencing unprecedented growth, fuelled by increased interest from domestic and international investors, including NRIs and HNIs. The strengthening US dollar and Hyderabad’s ranking among the top 65 wealthiest cities globally, as well as the 10th fastest-growing millionaire hotspot further bolsters this trend,” said Anshuman Magazine, Chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.
