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Hyderabad's residential real estate sector encountered a slowdown earlier this year, with overall home sales dropping by 12% compared to the previous year. The total registration value also dipped marginally by 4%. However, the premium housing segment defied this trend, showing a notable increase in both sales share and value contribution. Properties priced above INR 1 crore rose to represent 20% of all registrations, up from 17% a year earlier, and accounted for over half of the total registration value. Demand for larger homes continued to grow, reflecting a clear buyer preference for more spacious and upscale residences.
Hyderabad's residential property market witnessed a significant slowdown earlier this year, as property registrations declined by 12% year-on-year. According to a recent report from Knight Frank India, the total number of homes registered fell from 6,268 units in the corresponding period last year to 5,516 units. Alongside this, the total registration value experienced a 4% dip, reaching INR 3,495 crore compared to INR 3,741 crore previously. Advertisement
Despite the overall contraction, the premium housing segment showed remarkable resilience and growth. Properties priced above INR 1 crore now account for 20% of total registrations, marking an increase from 17% during the same period last year. These high-value properties contributed a substantial 51% share to the total registration value, up 14% year-on-year, underlining the growing appetite for luxury homes.
Further evidence of changing buyer preferences is seen in the increasing demand for larger homes. Residential units exceeding 2,000 square feet constituted 18% of total registrations, a rise from 15% a year earlier. This shift towards spacious living reflects evolving lifestyle aspirations among buyers, who increasingly prioritise comfort and exclusivity.
District-wise, Rangareddy continues to dominate the market with 48% of total registrations, followed by Medchal-Malkajgiri at 36%, and Hyderabad district itself contributing 15%. These areas have emerged as key hotspots for premium residential projects, attracting homebuyers seeking upscale amenities and superior quality of life.
Industry experts attribute the robustness of the premium housing segment to several factors. Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted that sustained demand for luxury homes is driven by strong economic fundamentals and a rising aspiration for an enhanced lifestyle. Developers have responded accordingly by focusing on premium projects tailored to discerning buyers.
This trend of prioritising premium housing has been evolving over recent years. Since 2022, the share of high-end residential sales in Hyderabad has surged to over 50%, up from around 30% before 2021. Correspondingly, new launches in the luxury segment now represent 55-65% of total residential developments, compared to less than 20% pre-pandemic. This shift reflects rising disposable incomes, changing buyer preferences, and a growing inclination towards larger, feature-rich homes.
While Hyderabad's overall residential property market is currently experiencing a downturn, the premium housing segment is thriving. The city's real estate landscape is evolving towards luxury living, buoyed by strong demand and economic growth. With developers continuing to launch upscale projects aligned to buyer aspirations, the premium housing market in Hyderabad is expected to sustain its upward trajectory in the near future.
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