The city of Hyderabad, renowned for its technological prowess and historical charm, has set its clear foot in the real estate industry. Hyderabad is also known to cross the real estate market of Mumbai and Bangalore in residential property prices. Now captivates an 11% surge in residential demand during the second quarter of 2023.
Despite facing challenges such as decreased searches for active listings, Hyderabad’s property market remains resilient, buoyed by northwestern localities, and an overall increase of 16% in property rates over the past year.
In this blog, let us understand the Hyderabad real estate market in 2023, its factors, and the residential areas to see the surge.
The robust IT and technology sectors are creating the future of real estate in Hyderabad. The constant economic growth driven by these sectors is enabling the expansion of the real estate market. As the city attracts a diverse workforce and emerges as an investment hub, the demand for both residential and commercial properties have skyrocketed.
Northwestern Enclaves Dominate: Localities like Gachibowli, Kondapur, Kukatpally, and Miyapur have emerged as the epicenters of heightened demand. Their strategic location falls between NH-65 and Nehru Outer Ring Road. This offers seamless connectivity to major employment hubs such as HITEC City, Madhapur, and Gachibowli. These areas contribute to their allure among buyers, investors, and developers.
Gachibowli: One of the significant IT hubs located near HITEC City, Hyderabad. Some of the big MNCs that can be found here are Amazon, TCS, Deloitte, Wipro, Accenture, and more. These IT firms drive massive employment and real estate growth opportunities. Here, the commercial areas or spaces take the upper hand.
Kondapur: This area is known for its lavish locality that seamlessly blends urban convenience with natural beauty. This location is most suitable for professionals to maintain a work-life balance. The real estate market in Kondapur reflects a spectrum of housing options that cater to both convenient and charming villas and apartments. You can easily find multiple apartments and villas for sale in Hyderabad here.
Kukatpally: Kukatpally is a vibrant neighborhood in Hyderabad. Its location near major IT hubs, educational institutions, and healthcare facilities has made it a hotspot for families and professionals. The real estate market in Kukatpally mostly focuses on residential properties for sale in Hyderabad. However, it also caters to various preferences and budgets, making it a dynamic hub for those seeking both convenience and community.
Miyapur: This area is a rapidly developing suburban locality situated in the northwestern part of Hyderabad, Telangana, India. Over the past few years, Miyapur has undergone a remarkable transformation, particularly in the real estate sector. It has become one of the sought-after residential and commercial hubs in the city. If you are in search of plots for sale in Hyderabad, then Miyapur would be the best location to invest in. It has an improved infrastructure, and growing amenities have contributed significantly to its prominence.
Homebuyer Preferences: 3 BHK units continue to reign supreme, constituting approximately 50% of the demand. This trend aligns with the supply side, as 45% of listed properties are also 3 BHK units.
Mid-Segment Momentum: The sweet spot for both buyers and developers lie in mid-segment units. More than 50% of interest and listings fall under the price range of INR 5,000 to 7,500 per square foot.
While demand increased by an impressive 10.7% QoQ in the second quarter of 2023, supply experienced an 8.1% dip during the same period. This trend was mirrored in the property rates as well, with average rates increasing by 1.8% QoQ for Ready-to-Move (RM) properties and 2.2% QoQ for Under-Construction (UC) properties.
Information Technology Hub: Hyderabad’s reputation as a technology hub is attracting a skilled workforce from across the country. This entry of a large number of professionals has triggered a rise in housing demand, both for renting and ownership. Hence leading the way to increase the real estate market in both commercial and residential.
Affordability: Compared to other major Indian cities, Hyderabad’s real estate market offers relatively affordable housing options. This affordability factor has made it an attractive choice for both first-time homebuyers and investors. The above areas, like Kukatpally, Miyapur, etc., have relatively low to average investment whether to rent or purchase. If you are thinking of long-term living, then there are various apartments for sale in Hyderabad that can be purchased or bought at an affordable price.
Infrastructure Development: The city’s infrastructural growth, with developments like the Hyderabad Metro and improved road networks, has increased the livability quotient across various neighborhoods. This enhanced connectivity has driven demand for properties in previously untapped areas.
Steady ROI for Investors: The robust demand for properties in Hyderabad has resulted in favorable returns on investment (ROI) for real estate investors. The city’s consistent growth trajectory makes it a promising destination for those seeking long-term gains.
Cultural and Lifestyle Appeal: Hyderabad’s blend of tradition and modernity always attracts people to enjoy living. Its cultural richness and culinary delights contribute to its appeal as a place to live, work, and invest.
Several neighborhoods within Hyderabad have witnessed a significant surge in demand, making them emerging hotspots for real estate activity:
Despite a temporary decline in property transactions due to concerns surrounding non-compliance with RERA regulations, Hyderabad’s property market remains resilient. The city’s growth following path is further supported by increasing employment opportunities and ongoing infrastructural developments.
Hyderabad’s real estate journey typically shows its evolution into a dynamic metropolis. The surge in demand signifies more than mere statistics—it reflects the city’s promise of prosperity, investment potential, and a quality lifestyle for its residents. As Hyderabad continues to attract professionals and investors alike, its property market remains with growth and opportunity.
Disclaimer: The information presented in this blog is based on data available up to the second quarter of 2023. Real estate markets have relatively higher fluctuations, and readers are advised to consult up-to-date sources and experts for the latest information.
Hyderabad, a city known for its technological advancements and historical allure, has made remarkable strides in the real estate industry. With a strong economic foundation fueled by the IT and technology sectors, Hyderabad has become the best place for both residential and commercial areas. Despite challenges, such as fluctuations in property searches, the city’s property market remains high, showing consistent growth, especially in northwestern localities.
Hyderabad has surpassed both Mumbai and Bangalore in residential property prices, showcasing its growing prominence in the real estate sector.
During the second quarter of 2023, Hyderabad witnessed an impressive 11% surge in residential demand, highlighting the city’s growing attractiveness.
Northwesterly areas like Gachibowli, Kondapur, Kukatpally, and Miyapur have emerged as key hubs with increased demand due to strategic locations and connectivity.
Mid-segment units priced between INR 5,000 to 7,500 per square foot account for over 50% of interest and listings, offering a sweet spot for both buyers and developers.
While demand increased by 10.7% in Q2 2023, supply decreased by 8.1% during the same period. This led to a rise in average property rates for both Ready-to-Move and Under-Construction properties.
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