Why Hyderabad is Becoming a Leader in Realty Sector

Since Hyderabad is renowned for its rapid development in IT and infrastructure, the influx of IT professionals makes the rental housing market a prominent player in the economy

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The past few years have proven to be a game changer for Hyderabad real estate as a great deal of advancements has propelled the quaint city into property royalty.


Prices for landed property declining at 1.5%, emergence of the revered Telengana, building of a metro and the move of banning the highest currencies, have all helped in the process

 Hyderabad’s emergence as an IT hub can be contributed to this rise. At the mid-range level, western suburbs of Hitec City and Kukatpally witnessed highest appreciation at 15.4 per cent, which is followed by the northern suburbs of Bachupally and Shamirpet and the eastern suburbs of Uppal and LB Nagar bagging the 3rd spot, both at 4.7 per cent.

The prime market of Banjara Hills and Jubilee Hills, sprint with 4 per cent hike and the secondary sub-market of Begumpet in Secunderabad trailed the list by 2.3 per cent.

The prime and secondary sub-markets recorded restrained appreciation due to their elevated land costs, complimented by the ongoing metro rail development and various other factors.

Salient Features of Hyderabad Real Estate

Hyderabad had garnered infamy for being a price sensitive market, with buyers refraining to spend on properties. Fortunately, the city observed improvement with market picking up pick up in terms of demand. Here are the salient points-

  • Political constancy, along with government initiatives, has inspired a positive response from the real estate market. Residential markets eschewed a calculated phase of recovery, post a long drawn political unrest for formation of Telangana state.
  • Hyderabad residential real estate is motivated by an objective mix of both investors and end users. Similar to other markets, end-users comprise the majority share and the increase in occupation of the office space have urged  organized players to stabilize the residential supply in Hyderabad market.
  • The development of Metro, paired with and other infrastructural projects such as radial roads, inner ring road, outer ring road and accessibility top-classes offices at comparatively lower prices than the other cities acts as an added benefit while opting for residential areas in Hyderabad.
  • Demonetization has added a slump in price, paired up with the current onus to eschew affordable housing, by our prime minister. This has shifted the focus from high end, posh developments to mass construction of affordable condos and villas for the middle class to purchase.
  • An aspirational standard of living works in favour of Hyderabad. The youth population of Hyderabad comes 3rd after Bengaluru and Chennai and it is the youth that charge the sensibilities of the market. The youth opt for RK apartments, providing the cosiness with affordability. Leasing of floor to this age bracket has proven profitability to the real estate players.
  • Since Hyderabad is renowned for its rapid development in IT and infrastructure, the influx of IT professionals makes the rental housing market a prominent player in the economy.
  • Availability of talent pool has led to the growth of infrastructure, owing to the rise of sectors such as Finance, Hospitality and others. Apart from IT sectors, others have made a prominent presence leading to a greater demand in office space.
  • In comparison to Bangalore and Mumbai, the price of land and space is much cheaper, resulting in more companies’ opting for Hyderabad, to set up their bases and tap on the increasing manpower.
  • The express development of Tellapur has led to the emergence of an unforeseen property boom in Hyderabad. Tellapur Technocity is gearing up to be one of the posh localities in the region, offering a slew of opportunities for investment and development.

Expectations from Upcoming Years

In the upcoming 5 years, markets are expected to strengthen with a titular positive reception of 5% - 7%, backed by its elemental strengths such as affordability, apt infrastructure and more which will drive the growth of end-user buying in the city. Also driving the positive sentiment among developers is the completion of the metro rail project, along with political stability post the bifurcation. The buoyant office market familiarization will also help invigorate the market momentum.

Hari Challa

Written By

Hari Challa is the Managing Director of Aliens Group. Aliens Group is a construction and infrastructure company. Aliens group consists of Aliens Developers, Aliens Infratech and Aliens Infra.