Hyderabad real estate market surges 98% in Q4

Amidst the thriving real estate growth story across India, Hyderabad emerges as a noteworthy contender, showcasing a substantial double-digit increase in capital values. In Q4, the capital values in Hyderabad surged 10% YoY, echoing the city's resilience and attractiveness to investors and homebuyers

Hyderabad: The vibrant tapestry of Hyderabad's residential real estate market reveals an intriguing narrative, highlighted by a remarkable 98 per cent surge in demand during October-December quarter (Q4) of 2023, as per a recent research report - Real Insight Residential Q4/ Annual 2023 by PropTiger.com of full stack real estate technology platform REA India (previously known as Elara Technologies Pte Ltd).

“This surge catapulted the sector towards a robust 49 per cent year-on-year overall annual growth. Against the backdrop of evolving market dynamics, this surge not only underscores the resilience of Hyderabad's real estate sector but also heralds a potential resurgence, offering promising avenues for both investors and homebuyers,” the report said.

According to the PropTiger, the supply of new homes witnessed a subtle shift in 2023, marked by a 7 per cent YoY decline, amounting to 76,819 units. However, amidst this backdrop, the final quarter of 2023 showcased a notable uptick with a 9 per cent YoY growth, hinting at a potential reversal of trends.

A significant portion of this new supply was strategically concentrated in micro markets such as Tellapur, Kokapet, and Nanakramguda, reflecting developers' keen focus on emerging hotspots within the city. Notably, a staggering 76 per cent of these newly launched units fell within the premium bracket of over Rs 1 crore, underscoring the city's penchant for luxury offerings and signaling sustained investor interest in high-value real estate properties.

Similarly, the majority of units sold were in the more than Rs 1-crore price bracket, claiming a significant 56 per cent share. This trend indicates a robust market for premium properties in Hyderabad.

Amidst the thriving real estate growth story across India, Hyderabad emerges as a noteworthy contender, showcasing a substantial double-digit increase in capital values. In the final quarter of 2023, the capital values in Hyderabad surged impressively by 10 per cent YoY, echoing the city's resilience and attractiveness to investors and homebuyers alike. With prices ranging between Rs 6,700-6,900 per square foot, Hyderabad's real estate market reflects a robust and sustainable growth trajectory.

This trend aligns with other key metropolitan cities such as Bengaluru, which also experienced a noteworthy 10 per cent year-on-year increase in capital values. Such upward movements in pricing not only signify the buoyancy of Hyderabad's real estate sector but also underscore its emergence as a prime investment destination in the country.

Vikas Wadhawan, Group CFO, REA India & Business Head at PropTiger.com, said: "The 98 per cent YoY increase in demand in Q4 2023 and 49 per cent YoY overall annual growth in the full year underscore the sector's strength. Despite a slight dip earlier, the 9 per cent YoY growth in Q4 2023 in new home supply signals market resilience.”

“With strategic focus on emerging micromarkets and a preference for premium properties, Hyderabad remains attractive to investors and homebuyers. The 10 per cent YoY increase in capital values solidifies its position as a prime investment destination, alongside other major cities in India. We're optimistic about continued growth and opportunities in Hyderabad's real estate market," he added.

Ankita Sood, Head of Research, Housing.com & PropTiger.com, said: “Hyderabad property market recorded a healthy double-digit (49 per cent YoY) growth in demand with the city taking the third-highest share in residential sales pie amongst the top eight cities in 2023. The growth in demand has pushed the bar for property prices, registering a weighted average 10 per cent uptick in capital values.”

She further said, “Our insights indicate that maximum residential sales and launches are concentrated along the Outer Ring Road (ORR), particularly in localities such as Tellapur, Kokapet, and Bachupally. Given that the demand in Hyderabad peaked in 2023, we anticipate the positive momentum to continue in upcoming quarters.”