High demand for luxury homes spark housing price surge in Western Hyd

The demand for larger spaces and luxurious amenities led to the price escalation in West Hyderabad. Earlier, the residential units were of sizes not more than 2,500 sq ft. These days, there are flats of 16,000 sq ft also. This part of the city is developing both vertically and horizontally

With world-class infrastructure, West Hyderabad caters the luxury housing needs of the high net worth individuals (HNIs) and non-resident Indians (NRIs). The prices of the residential units here are skyrocketing with the growing demand for larger spaces and luxurious amenities. The city-based real estate developers are also in a competitive spirit to deliver the most lavish houses in this zone.

“The housing demand in Gachibowli, Kondapur, and other areas of West Hyderabad is not just driven by the IT professionals. All the rich and elite families across the city and neighbouring districts are either buying a house or investing in a residential property in this zone,” said V Rajashekar Reddy, president of Credai (Confederation of Real Estate Developers Association of India) Hyderabad.

“The demand for larger spaces and luxury homes led to the price escalation in West Hyderabad, particularly in Gachibowli and Kondapur. Earlier, we used to see residential units of size not more than 2,500 sq ft. These days, there are flats of 16,000 sq ft also. This part of the city is developing vertically and horizontally,” said K Raja Reddy, president of Greater West City Builders Association (GWCBA).

Predicting the future prospects of the real estate market in West Hyderabad, he said: “Already the land rates have skyrocketed in this zone. It is clearly evident by the record sale of Neopolis layout in Kokapet at above Rs 100 crore per acre in the recently held e-auctions. Soon, the land may be sold out in terms of sq ft. This rate hike will surely reflect on the prices of flats also in these localities.”

Expressing similar views, V Srinivas, vice-president of Telangana Builders Federation (TBF), said that the housing prices have been surging up drastically in the IT corridor and Gachibowli Financial District in line with the land rates. At the cost of a 2BHK flat in these areas, people can buy a duplex villa in other parts of the city. So, the middle-class home buyers have stopped looking towards West Hyderabad.

As per the latest report of real estate consultancy Anarock Group, Gachibowli and Kondapur are the top micro-markets across India to see the highest average residential price hikes at 33 per cent and 31 per cent respectively between the first 10 months of 2023 and the same period in 2020. Miyapur is the other top micro-market in the city to see a high average price rise during the last three years.

According to it, the average residential prices as of October 2023-end stand at approximately Rs 6,355 per sq ft in Gachibowli. In the corresponding period of 2020, average prices in this locality were Rs 4,790 per sq ft. Kondapur area has recorded a 31 per cent average price rise in this period from Rs 4,650 per sq ft by October-end 2020 to Rs 6,090 per sq ft by October-end 2023.

Miyapur area has witnessed a 28 per cent increase in average prices during this period from Rs 4,250 per sq ft by October-end 2020 to Rs 5,420 per sq ft by October-end 2023. Owing to the strong housing demand, the average residential prices in these areas of the city have grown significantly during this three-year period.

“Among the top seven cities in India, the key areas in the IT-led cities Hyderabad, Bengaluru and Pune saw the highest surge in average prices,” says Prashant Thakur, Regional Director & Head - Research, Anarock Group. “Hyderabad also has a higher scope of price appreciation because the city's average prices in pre-pandemic period were relatively lower than the prices in Bengaluru's IT/ITeS hubs.”

He adds, “The end of October, marking the end of the festive season, typically denotes the culmination of the year's peak housing sales period. As of 10-month period in 2023, the average prices in Hyderabad's key micro markets are almost at par with Bengaluru's IT-led housing hotspots. Bengaluru’s Whitefield comes in third with a 29 per cent jump in this three-year period from Rs 4,900 per sq ft to Rs 6,325 per sq ft.”