Hyderabad's Housing Market Surges with 81% Price Increase in 6 Years
According to a recent report by NoBroker, Hyderabad's housing market has experienced a significant surge in the past six years, with average home prices rising by 81% between 2019 and 2025 to ₹8,326 per sq ft. This makes it the second-fastest growing market after Gurugram, which topped the list with an 85% increase.
Buyers Shifting Towards Resale Segment
As new launches become increasingly expensive, buyers are shifting towards the resale segment, which continues to offer relatively affordable options and a broader price range. Despite the sharp price rise, home sizes have shrunk by about 4%, from 1,068 sq ft to 1,025 sq ft, reflecting a 'shrinkflation' across major cities.
Affordability Takes a Hit
The sharp price rise has impacted affordability, with nearly 84% of homebuyers in Hyderabad feeling priced out of the sub- ₹1 crore segment, the report noted. This is largely due to a structural shift in supply, with developers focusing on premium and luxury housing, driven by higher margins and rising land costs.
Demand Shifts to Resale, Key Micro-Markets Gain Traction
- New launches becoming increasingly expensive is driving buyers towards the resale market, which offers relatively affordable options and a wider price mix.
- The resale segment has maintained a more balanced distribution across price categories, catering to first-time buyers and mid-income households.
Key Micro-Markets Emerge as Demand Hotspots
- Areas such as Kukatpally, Miyapur, Kondapur, Manikonda, and Kokapet have emerged as demand hotspots, driven by a mix of infrastructure upgrades, metro connectivity, and proximity to employment hubs.
Standalone Properties in High Demand
Interestingly, Hyderabad also stands out for its unique buyer preference trends. Unlike other cities, standalone properties command higher per-square-foot prices than gated communities in some areas, indicating that buyers prioritise location and connectivity over amenities.
The Western Corridor Leads the Housing Real Estate Segment
NoBroker said that the western corridor, anchored by the Financial District, accounted for about 25% of new supply, reinforcing its position as the city's premium housing hub. Areas such as Tellapur, Kokapet, Neopolis, Narsingi and Rajendra Nagar are witnessing over 20% year-on-year growth, as development spills over from saturated IT micro-markets like Madhapur, Kondapur and Gachibowli.
South Hyderabad Emerges as the Largest Contributor
- South Hyderabad, led by the airport corridor, has emerged as the largest contributor, accounting for 33% of total launches.
- Positioned as an extension of the Financial District, this zone is attracting IT professionals seeking affordable, mid-range housing.
East Hyderabad Continues to Anchor Budget Housing Segment
In contrast, East Hyderabad, covering Uppal and LB Nagar, continues to anchor the budget housing segment, contributing 13% of new supply. However, growth is expected to moderate to 3% in 2025 as the market absorbs the significant supply added over the past few years.
Key Findings:- Hyderabad's housing market has surged by 81% in the past 6 years.
- Buyers are shifting towards the resale segment due to expensive new launches.
- Key micro-markets such as Kukatpally, Miyapur, Kondapur, Manikonda, and Kokapet are emerging as demand hotspots.
- The western corridor is leading the housing real estate segment.
- South Hyderabad is the largest contributor to new launches.