Hyderabad sees a surge in sales of upscale residential properties – Telangana Today

According to a CBRE report, sales in the high-end residential segment (Rs 1 lakh to Rs 2 lakh and above) in Hyderabad will account for over 50 per cent from 2022, up from 30 per cent by 2021.

Hyderabad: Over the last three years, the fundamental outlook for buying real estate in Hyderabad has undergone a metamorphosis, with mid-segment apartment sales having declined significantly while luxury segment apartment sales have seen a sharp increase.

Moreover, Hyderabad’s significant growth over the last ten years has made it one of the most popular destinations for the luxury real estate segment.

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CBRE South Asia Pvt. Ltd’s latest report, ‘Hyderabad’s Residential Renaissance: Dissecting the city’s transforming housing landscape’, released this week, highlights this shift.

According to the report, sales in the high-end residential segment (Rs 1 lakh to Rs 2 lakh and above) in Hyderabad now account for over 50 per cent from 2022, up from 30 per cent by 2021.

Moreover, from 2022, luxury residential launches in the city have accounted for over 55-65% of the market share, whereas before the pandemic, this figure was less than 20% of new launches each year.

This growth narrative has come at the expense of the mid-segment, i.e. residential properties in the Rs 45 lakh-1 crore range, whose share has fallen to less than 25 per cent in H1 2024, compared to 50 per cent share by 2021. Similarly, the share of launches in the mid-segment has fallen to 25 per cent, compared to 60-70 per cent in the pre-COVID-19 period.

Historically, Hyderabad’s housing market has been dominated by the mid-range segment (Rs. 45 lakhs to Rs. 1 crore) in terms of new launches as well as sales. However, in recent years, post-Covid, there has been a noticeable shift towards the high-end segment (Rs. 1 crore to Rs. 2 crore), driven by rising disposable incomes and changing buyer preferences.

At the same time, premium (Rs 2-4 lakh) and luxury segments (Rs 4 lakh and above), which earlier accounted for less than 5 per cent of all openings till 2021, have grown to over 20 per cent of all openings in the city in 2023 and the first half of 2024, as per a CBRE report.

This growth is largely attributed to significant developments in the western part of the city, particularly in areas like Kokapet, Narsingi, Tellapur, Manikonda and Nanakramguda.

Developers are introducing more 3 BHK, 4 BHK and larger units due to the post-Covid demand for spacious living spaces and dedicated home offices and recreational areas. This trend is particularly visible in Kokapet (Neopolis) and Nanakramguda in western Hyderabad.

Evolution of the premium and luxury real estate market:

The luxury real estate market in Hyderabad is witnessing growth driven by a confluence of factors. Increased interest from both domestic and international investors, including NRIs and HNIs, coupled with a strengthening US dollar, has fuelled demand for premium properties.

CBRE stated in its report that the city’s growing economic power, as evidenced by its position among the 65 richest cities in the world and 10th place among the fastest-growing centers for millionaires, further strengthens this trend.

Anshuman Magazine, President & CEO – India, South East Asia, Middle East & Africa, CBRE, said, “Hyderabad’s residential market has undergone a drastic transformation to become one of the most dynamic and desirable real estate destinations in India. This evolution is marked by an increase 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 & Head – Hyderabad, CBRE India, said, “The pandemic has profoundly changed the landscape, with an emphasis on safety and access to essential amenities. As a result, there is a clear preference for branded residences, penthouses, loft villas and independent floors in carefully planned communities.”