Hyderabad’s real estate market has seen a remarkable rise, securing the second spot for the highest property prices in India, just behind Mumbai in the first quarter of 2024. This growth outpaced Bengaluru, despite its notable price increase. The surge in Hyderabad’s housing market, particularly in the premium and luxury segments, has been fueled by stable repo rates and controlled inflation.
Hyderabad’s Real Estate Boom
In the first quarter of 2024, average residential property prices in Hyderabad skyrocketed to become the second highest in the country, trailing only Mumbai. This development comes even as Bengaluru experienced the highest percentage increase in housing prices at 19% compared to the same period in 2023, followed by Delhi NCR with a 16% rise, according to the latest ‘Housing Price Tracker’ report by CREDAI, Colliers, and Liases Foras.
Comparative Analysis of Major Markets
While Mumbai’s Metropolitan Region (MMR) saw a 6% increase in average housing prices to ₹20,361 per square foot during Q1 2024, Hyderabad’s prices surged by 9% to ₹11,323 per square foot. In contrast, Bengaluru’s prices were at ₹10,377 per square foot, Delhi NCR at ₹9,757 per square foot, and Pune saw a 13% rise to ₹9,448 per square foot.
Regional Price Trends within Hyderabad
Within Hyderabad, the Southwest region, encompassing areas like Kokapet, Manikonda, Puppalguda, and Shaikpet, experienced the highest year-over-year price increase at 15%. Conversely, Central Hyderabad, including Himayat Nagar, Somajiguda, Begumpet, and Ameerpet, saw a slight decline in average prices.
Factors Driving Price Increases
The 10% average rise in housing prices across the top eight markets during Q1 2024 was primarily driven by strong demand in the premium and luxury housing segments. The report attributes this robust demand to stable repo rates and controlled inflation, which have created a conducive environment for real estate investments.
Unsold Inventory Insights
Despite the price surge, the MMR accounted for 38% of the total unsold residential inventory among the top eight markets. Hyderabad followed with 12%, while Pune and Delhi NCR each held 11%. Within Hyderabad, the Northwest micro market was notable for accounting for 70% of the city’s total unsold inventory.
Conclusion: Hyderabad’s Real Estate Prospects
Hyderabad’s ascent to the second highest position in property prices in India highlights the city’s growing appeal and economic stability. With strategic factors like stable repo rates and controlled inflation supporting this growth, Hyderabad’s real estate market is poised for continued prosperity. Prospective buyers and investors should consider the promising opportunities in this dynamic market, especially in premium and luxury housing segments.