Hyderabad's Residential Renaissance - Dissecting the City's Housing Landscape

Hyderabad's residential market has undergone a remarkable transformation, solidifying its position as a premier real estate destination in India. With record-breaking growth in new residential launches each year post the COVID-19 pandemic, the city’s residential stock reached 4.4 lakh apartment units as of H1 2024. Concurrently, demand for residential units increased across segments, with approximately 1 lakh units sold over the past ten quarters.

Hyderabad contributes ~12% of India’s total housing stock. The top five developers in the city contribute ~23% of the residential stock, and approximately 35% of the city’s residential stock has been added in the last ten quarters. The city has also witnessed a ~2.2x growth in housing stock in the past five years and a ~3.5x growth in the past ten years.

The expanding demand for premium / luxury residences in Hyderabad is driven by a convergence of factors elevating the city's appeal among high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs). There is a significant increase in the share of homes larger than 2,000 sq. ft., which now account for over 41% of the city’s total residential sales in H1 2024, up from less than 20% before 2022. Since 2022, approximately 80% of the city's premium / luxury housing stock has been introduced to the market.

In terms of Hyderabad’s residential market outlook:

·        Buyers can expect a well-balanced market with a variety of high-quality options across both apartment and villa segments.

·        Developers would continue prioritising the timely delivery of well-constructed projects in strategic locations.

·        Overall, Hyderabad’s residential market is well-positioned for sustained growth, reflecting developer responsiveness and evolving market preferences.

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