- Luxury Homes Dominate Demand
- Prices Push Affordability Limits
- Hyderabad Outperforms Peers
- Market Defies National Slowdown
Article Today, Hyderabad:
Hyderabad’s residential real estate market continued to outperform other major Indian cities in 2025, even as national housing sales showed signs of moderation. According to the latest report by Knight Frank India, the city recorded strong buyer interest, driven largely by demand for premium and high-value homes.
Strong Annual Sales Performance
During the year, Hyderabad registered sales of 38,403 residential units, marking a growth of about four per cent compared with 2024. This rise stood out at a time when combined housing sales across eight major cities declined marginally. However, Hyderabad bucked the trend, particularly in the second half of the year, when transactions accelerated between July and December.
Shift Towards High-Value Homes
Buyer preference in the city has clearly shifted towards higher-priced properties. Homes priced above one crore rupees accounted for nearly half of all residential sales, a milestone for the local market. In the second half of 2025 alone, sales in the luxury housing segment rose by seventy one per cent, reflecting growing interest from high-income professionals and technology sector employees.
Affordability Comes Under Pressure
While volumes remained strong, affordability weakened further. Average residential prices in Hyderabad increased by nearly thirteen per cent over the year. The average cost per square foot reached around six thousand seven hundred and twenty one rupees. As a result, demand for homes priced below fifty lakh rupees declined sharply, placing home ownership increasingly beyond the reach of middle-income and lower-income households.
Districts Driving Residential Demand
Rangareddy and Medchal Malkajgiri districts continued to lead residential sales. Their proximity to technology corridors and improved connectivity supported sustained demand. Meanwhile, Sangareddy district witnessed a sharp rise in land values following announcements related to the Regional Ring Road. Land prices in the district rose by about twenty one per cent, signalling growing investor interest.
Office Market Adds Momentum
In addition to housing, Hyderabad’s commercial real estate sector recorded notable growth. About one crore fourteen lakh square feet of office space was leased during the year. More than half of this demand came from global capability centres. Consequently, average office rentals rose by nearly ten per cent, supported by expansion plans of multinational companies.
Investor Confidence Remains Strong
Hyderabad continues to attract real estate investors seeking stable rental returns. In locations such as Hafeezpet, office spaces generate monthly rentals of up to forty five rupees per square foot. With bank financing available, small and mid-scale investors are also entering the market. Therefore, Hyderabad is increasingly viewed as one of India’s most resilient real estate destinations.
