Sales of high-end houses shoot up over 50% in Hyd since 2022

Hyderabad's residential market has dramatically transformed, establishing itself as one of India's most dynamic and sought-after real estate destinations - Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE

Hyderabad: CBRE South Asia Pvt Ltd, India’s leading real estate consulting firm and the Confederation of Real Estate Developers' Associations of India (Credai)- Telangana, have announced the findings of their joint report, ‘Hyderabad’s Residential Renaissance: Dissecting the city’s transforming housing landscape.’ According to the report, the sales in the high-end residential segment (Rs 1-2 cr and above) in Hyderabad now account for over 50 per cent from CY 2022 onwards, up from 30 per cent until CY 2021. Since 2022, launches in the high-end residential segment in the city account for over 55-65 per cent share, compared to less than 20 per cent of new launches each year before the pandemic.

In contrast, the mid-segment (Rs45 lakh to Rs1 cr) residential sales share in Hyderabad has dropped to less than 25 per cent in H1 2024, down from the 50 per cent share until CY 2021. Similarly, the share of launches in the mid-segment has dropped to 25 per cent compared to 60-70 per cent in the pre-Covid period.

Hyderabad's residential market has traditionally been dominated by the mid-end (Rs45 lakh to Rs1 crore) segment in terms of new launches. However, in recent years post-Covid, there has been a noticeable shift towards the high-end (Rs1-2 crore) segment, driven by rising disposable incomes and evolving buyer preferences. The premium (Rs2-4 crore) and luxury (Rs4 crore above) segments, previously accounting for less than 5 per cent of overall launches until 2021, have grown to over 20 per cent of the city's total launches in 2023 and the first half of 2024.

This growth is largely due to significant developments in the western part of the city, particularly in areas like Kokapet, Narsingi, Tellapur, Manikonda, and Nanakramguda. Developers have been launching more 3 BHK, 4 BHK, and larger units due to the post-Covid demand for spacious living environments and dedicated home offices and recreational areas. This trend is particularly evident in Kokapet (Neopolis) and Nanakramguda in the western part of Hyderabad.

The city has experienced a surge in residential development in recent years, reflecting its burgeoning economic vitality and increasing desirability as a place to live. Since the Covid-19 pandemic, the city has achieved unprecedented growth in new residential launches, culminating in an impressive residential stock of 4.4 lakh apartment units by June 2024. This expansion has been accompanied by robust demand for housing across all segments, with approximately 1 lakh units sold over the past ten quarters.

Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE, said, "Hyderabad's residential market has dramatically transformed, establishing itself as one of India's most dynamic and sought-after real estate destinations. This evolution is marked by a surge in residential property launches and a steady rise in demand, driven by affordable housing options, a high quality of life, and a vibrant influx of professionals.”

V Rajashekar Reddy, General Secretary, Credai Hyderabad, said, “Telangana's proactive policy landscape has been a key catalyst for Hyderabad's burgeoning residential market. The State's commitment to streamlining processes and fostering a transparent ecosystem has been instrumental in driving growth.”