Uber-Luxury Housing Market in Hyderabad Booms Amid Rising Demand

Hyderabad is galloping ahead as the next big luxury real estate destination in India fuelled by economic growth, a booming IT sector, and rapid infrastructure development. The conducive business environment and thriving start-up ecosystem of the city make it a magnet for professionals and entrepreneurs from pan India, giving rise to HNIs and hence driving the demand for luxury and uber-luxury homes.

High-end properties priced above ₹1 crore accounted for 63% of total sales in the first half of 2024, compared to 52% share in H2 2023 (second half of 2023), according to Knight Frank India’s India Real Estate Office and Residential Market H2-2024 report. The outright growth in the ₹1-2 crore segment was the most significant in the survey, with a rise from 38% in H2 2023 to 46% in H2 2024 — representing a 28% year-on-year increase in sales.

In 2024, the city also registered a year-on-year increase of 7% in home sales, with transactions increasing by 23% year-on-year in terms of value, indicating that Hyderabad continues to emerge as an attractive market for high-end home buyers looking for premium living options.

Hyderabad: The Homebuyer’s Sensation

Hyderabad, which has been ranked India’s best city for quality of life by Mercer from 2015 to 2019 and in 2023 as well, ensures political stability, good healthcare, world-class education, and good infrastructure. These considerations have helped keep elite homebuyers active and so has a boom in ultra-luxury real estate.

Hyderabad: Knight Frank’s estimates show that the number of persons with ultra-high net worth (UHNWIs) in Hyderabad will jump to 19,908 in 2028 from 13,263 in 2023, registering an increase of 50.1% Rising wealth, paired with changing buyer tastes for high-end amenities, has driven unprecedented demand for high-end homes.

Had there been a race among the top tier cities in India for the luxury real estate crown, it would have been a tussle between cities like Mumbai, Delhi-NCR, and Bengaluru for the longest time, but now Hyderabad as a market is becoming a strong challenger. Due to its proximity to large office hubs and better infrastructure, the western zone of the city, comprising HITEC City and the Financial District, accounted for 63% of all luxury sales in H2 2024, one of the notable shifts from the same period last year, when it accounted for 61% of all luxury units sold.

The Edge Hyderabad Has on Affordable Luxury

Hyderabad remains affordable, despite rapid growth — unlike Mumbai and Bengaluru, where property prices have skyrocketed. Average prices in Mumbai in Q4 2024 were at ₹16,600 per sq. in Mumbai according to Anarock’s data. Even as Delhi-NCR and Bengaluru tripped in at ₹7,550 and ₹8,380 per sq. ft., respectively. Hyderabad had an average price of ₹7,300 per sq. ft., notwithstanding a significant 27% rise over the ₹5,750 per sq. ft. in 2023.

The city also enjoys a price advantage over these 2 cities, backed by fundamentals of the luxury housing market, making it an attractive destination for luxury homebuyers and investors.