Hyderabad sees sharp rise in sale of residential properties falling under ‘high-end’ segment

According to a CBRE report, the sales in the high-end residential segment (Rs. 1 crore to Rs.2 crore and above) in Hyderabad now account for over 50 per cent from 2022 onwards, up from 30 per cent until 2021.

Hyderabad: In the last three years, the basic outlook for property acquisitions appears to have undergone a metamorphosis in Hyderabad with the mid-segment residential sales shrinking considerably and the high-end segment residential sales rising sharply.

This apart, Hyderabad’s manifold growth in the last ten years has resulted in the city emerging as one of the preferred destinations for the premium and luxury housing segment.

The latest report ‘Hyderabad’s Residential Renaissance: Dissecting the city’s transforming housing landscape’ of CBRE South Asia Pvt. Ltd released this week highlights this transition.

According to the report, the sales in the high-end residential segment (Rs. 1 crore to Rs.2 crore and above) in Hyderabad now account for over 50 per cent from 2022 onwards, up from 30 per cent until 2021.

Also, since 2022, launches in the high-end residential segment in the city account for over 55 per cent to 65 per cent share, compared to less than 20 per cent of new launches each year before the pandemic.

This growth narrative has been at the cost of the mid-segment i.e., residential properties in the range of Rs.45 lakh to Rs.1 crore, which dropped to less than 25 per cent in H1 2024, down from the 50 per cent share until 2021. Similarly, the share of launches in the mid-segment has dropped to 25 per cent compared to 60 per cent to 70 per cent in the pre-Covid period.

Historically, Hyderabad’s residential market has been dominated by the mid-end (Rs. 45 lakhs to Rs. 1 crore) segment in terms of new launches and also the sales. However, in recent years, post-Covid, there has been a noticeable shift towards the high-end (Rs.1 crore to Rs. 2 crore) segment, driven by rising disposable incomes and evolving buyer preferences.

At the same time, the premium (Rs.2 crore to Rs. 4 crore) and luxury (Rs.4 crore and above) segments, previously accounting for less than 5 per cent of overall launches until 2021, have grown to over 20 per cent of the city’s total launches in 2023 and the first half of 2024, documents the CBRE report.

This growth is attributed largely due to significant developments in the western part of the city, particularly in areas like Kokapet, Narsingi, Tellapur, Manikonda, and Nanakramguda.

Developers have been launching more 3 BHK, 4 BHK, and larger units due to the post-Covid demand for spacious living environments and dedicated home offices and recreational areas. This trend is particularly evident in Kokapet (Neopolis) and Nanakramguda in the western part of Hyderabad.

Evolution of Premium & Luxury Residential Market:

Hyderabad’s luxury residential market is experiencing a surge driven by a confluence of factors. Increased interest from both domestic and international investors, including NRIs and HNIs, coupled with a strengthening US Dollar, has fuelled demand for premium properties.

CBRE in its report said the city’s growing economic prowess, evidenced by its ranking among the top 65 wealthiest cities globally and the 10th fastest-growing millionaire hotspot, further underpins this trend.

Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, “Hyderabad’s residential market has dramatically transformed, establishing itself as one of India’s most dynamic and sought-after real estate destinations. This evolution is marked by a surge in residential property launches and a steady rise in demand, driven by affordable housing options, a high quality of life, and a vibrant influx of professionals.”

Gipson Paul, Senior Executive Director and Head – Hyderabad, CBRE India, said, “the pandemic has profoundly reshaped this landscape, emphasising security and access to essential amenities. Consequently, there is a marked preference for branded residences, penthouses, sky villas, and independent floors within meticulously planned townships.”