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Hyderabad's residential market sees rising demand for premium homes and high-value properties

#Taxation & Finance News#India#Telangana#Hyderabad
Last Updated : 24th Feb, 2025
Synopsis

Hyderabad's residential market is witnessing a shift towards premiumisation, as highlighted by Knight Frank India. While overall property registrations remained stable, the total value increased by 5% year-on-year. Homes priced above INR 1 crore saw a 12% rise in registrations, indicating strong demand for high-value properties. Medchal-Malkajgiri led with 45% of registrations, followed by Rangareddy at 41%. The weighted average price of homes rose by 3%, with Medchal-Malkajgiri experiencing an 11% increase. High-value transactions above INR 5.5 crore involved larger properties exceeding 3,000 sq ft, reinforcing the preference for premium housing driven by economic stability and evolving buyer aspirations.

The residential market in Hyderabad continues to exhibit a growing trend towards premiumisation, as highlighted in the latest analysis conducted by Knight Frank India. The city has witnessed a steady rise in high-value home sales, with increasing demand for larger residences and properties offering enhanced amenities. While overall property registrations remained relatively stable, the total value of registered homes saw a 5 per cent year-on-year (YoY) increase. The Hyderabad residential market encompasses four districts Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy and includes transactions from both the primary and secondary real estate sectors.


Despite the continued dominance of properties priced below INR 50 lakh in total registrations, there has been a notable shift towards premium housing. The number of homes priced at INR 1 crore and above registered a significant 12 per cent YoY increase in January 2025, indicating a growing inclination among homebuyers towards high-value real estate.

In terms of unit size, the majority of registered properties fell within the range of 1,000 to 2,000 square feet, accounting for 69 per cent of total registrations. Properties exceeding 2,000 square feet made up 14 per cent of the total, a slight increase from the 13 per cent recorded in January 2024.

A district-wise analysis revealed that Medchal-Malkajgiri accounted for the largest share of property registrations at 45 per cent, closely followed by Rangareddy with 41 per cent. Hyderabad district contributed the remaining 14 per cent of total registrations, reflecting its comparatively smaller share in the overall market activity.

The weighted average price of transacted residential properties saw a YoY increase of 3 per cent in January 2025. Among the districts, Medchal-Malkajgiri recorded the highest annual price increase of 11 per cent, highlighting a surge in demand for properties in that area.

Apart from bulk transactions in standard residential units, there has also been a rise in demand for larger, high-end properties with superior amenities. The top five real estate transactions in January 2025 involved properties exceeding 3,000 square feet in size, each valued at more than INR 5.5 crore. Of these, three transactions took place in West Hyderabad, while the remaining two were recorded in Central Hyderabad.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated that the residential market in Hyderabad maintained steady sales momentum in January 2025, demonstrating strong buyer confidence. He further noted that the demand for high-value homes has continued to increase, with registrations for properties priced above INR 1 crore growing by 12 per cent YoY. This, he explained, underscores the rising preference for premium housing, fuelled by robust economic conditions and evolving lifestyle expectations.

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