Hyderabad: Residential property sales see sharp rise

Hyderabad: Over the last three years, the fundamental outlook for property acquisition in Hyderabad has undergone a metamorphosis, with mid-segment residential sales declining significantly and high-end segment residential sales increasing rapidly. Moreover, Hyderabad’s multifold growth over the last ten years has resulted in the city emerging as one of the preferred destinations for the premium and luxury housing segment. CBRE South Asia Pvt Ltd’s latest report ‘Hyderabad’s Residential Renaissance: An Analysis of the City’s Changing Housing Landscape’ released this week sheds light on this transformation. According to the report, sales in the high-end residential segment (Rs 1 crore to Rs 2 crore and above) in Hyderabad are now over 50 per cent from 2022, up from 30 per cent till 2021. Also, since 2022, the share of launches in the high-end residential segment in the city has increased from 55 per cent to over 65 per cent, while the share of new launches was less than 20 per cent every year before the pandemic. This growth narrative has been driven by the mid-segment, i.e. residential properties priced in the Rs 45 lakh to Rs 1 crore range, which dropped to less than 25 per cent in the first half of 2024 from a 50 per cent share by 2021. Similarly, the share of launches in the mid-segment has declined to 25 per cent compared to 60 per cent to 70 per cent in the pre-Covid period. Historically, Hyderabad’s residential market has been dominated by the mid-end (Rs 45 lakh to Rs 1 crore) segment in terms of new launches and sales. However, in recent years, post-Covid, there has been a significant shift towards the high-end (Rs 1 crore to Rs 2 crore) segment due to rising disposable incomes and changing preferences of buyers. At the same time, the premium (Rs 2 crore to Rs 4 crore) and luxury (Rs 4 crore and above) segments, which previously accounted for less than 5 per cent of total launches till 2021, have grown to over 20 per cent of the city’s total launches in 2023 and the first half of 2024, according to a CBRE report. This growth is primarily attributed to significant developments in the western part of the city, especially in areas such as Kokapet, Narsingi, Tellapur, Manikonda and Nanakramguda. Developers are launching more 3 BHK, 4 BHK and larger units due to the post-Covid demand for spacious living environments and dedicated home office and entertainment areas. This trend is particularly evident in Kokapet (Neopolis) and Nanakramguda in the western part of Hyderabad.
Growth of premium and luxury residential market:
Hyderabad’s luxury residential market is witnessing a surge due to a confluence of several factors. Growing interest from domestic and international investors, including NRIs and HNIs, and the strong US dollar have fuelled demand for premium properties. The city’s growing economic strength, evidenced by its ranking in the top 65 richest cities worldwide and the 10th fastest-growing millionaire hotspot, further reinforces this trend, CBRE said in its report. Anshuman Magazine, chairman and CEO (India, South-East Asia, Middle East and Africa), CBRE, said, “Hyderabad’s residential market has transformed dramatically, 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 increase in demand, driven by affordable housing options, high quality of life and a vibrant influx of professionals.” Gipson Paul, Senior Executive Director and Head, Hyderabad, CBRE India, said, “The pandemic has profoundly changed this landscape, placing emphasis on safety and access to essential amenities. As a result, there is a clear preference for branded residences, penthouses, sky villas and independent floors within carefully planned townships.”