High demand for luxury housing in Hyderabad

Even as Hyderabad real estate continues to exude positive vibes, the demand for luxury housing in the city and suburbs has picked pace in the recent years.

Hyderabad: Even as Hyderabad real estate continues to exude positive vibes, the demand for luxury housing in the city and suburbs has picked pace in the recent years.

Among the top seven cities, Hyderabad recorded the highest jump of 42 per cent in the average price of luxury homes in last five years, from approximately Rs 7,450 per sft in 2018 to around Rs.10,580 per sft in the first half of 2023. According to the analysis done by Anarock, Bengaluru and Mumbai Metropolitan Region (MMR) recorded the second-highest average price hike in this budget segment at 27 per cent each.

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The pandemic has been an indubitable boon for the previously lacklustre luxury homes segment, with sales and new supply increasing manifold since then. Prices were bound to catch up with the demand, noted the Anarock report.

On analysing the average price trends in the top seven cities across different budget segments, Anarock Research data revealed that luxury homes have recorded the highest average price appreciation of 24 per cent in the last five years.

The prices of luxury homes in the top seven cities in 2018 averaged out at approximately Rs 12,400 per sft and at this point in 2023, have increased to around Rs. 15,350 per sft.

Affordable homes priced below Rs. 40 lakh notched up a more modest 15 per cent price appreciation in the same period. The average price in this category across the top seven cities was Rs 3,750 per sft in 2018. Currently, it averages out at Rs 4,310 per sft. Budget homes in Hyderabad saw the second-best price appreciation of 16 per cent in this period from Rs 3,460 per sft in 2018 to Rs 4,000 per sft in H1 2023.

Anuj Puri, Chairman – Anarock Group, said, “Extremely robust sales ably supported by good supply pipeline have resulted in luxury homes witnessing the most significant price appreciation.” Contrastingly, the affordable segment, which was on a high before Covid-19, saw compromised sales that also reflected in its average price growth. “Mid and premium segment homes priced Rs. 80 lakh to Rs. 1.50 crore together saw the average price go up by approximately 18 per cent in this period across the top seven cities,” he said.

“Hyderabad is already a standout performer on other real estate charts, and the appetite for luxury housing here has been more than apparent. The fact that it notched up the highest price appreciation at 23 per cent in this budget category stands to reason,” added Puri.

Average price appreciation (%) across budget categories- 2018 Vs 2023:

City            Affordable (< Rs 40 L)       Mid & Premium (Rs.40 L to Rs 1.50 Cr)      Luxury (> Rs 1.50 crore)

Hyderabad      16%                                    23%                                                                       42%

MMR                15%                                    17%                                                                        27%

Bangalore         13%                                   20%                                                                        27%

NCR                   19%                                   17%                                                                         22%

Pune                   12%                                   15%                                                                         19%

Chennai             15%                                   16%                                                                         15%