Hyderabad set for residential boom: Over 130,000 units expected in next 3 years
The city's expansion in the technology sector and industrialization has become a catalyst for the proliferation of residential development, notably in proximity to key office micro-markets such as the IT Corridor and Extended IT Corridor in the western part of Hyderabad.
Hyderabad: Hyderabad is gearing up for a remarkable residential boom, as revealed by a comprehensive report from CBRE South Asia Pvt. Ltd. The report, titled ‘From Now to Next: Tracing Hyderabad’s Real Estate Dynamics,’ forecasts the launch of over 1,30,000 residential units within the city in the next two to three years.
The city’s expansion in the technology sector and industrialization has become a catalyst for the proliferation of residential development, notably in proximity to key office micro-markets such as the IT Corridor and Extended IT Corridor in the western part of Hyderabad.
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According to the report, this surge is primarily attributed to the escalating demand from multinational company employees, further amplified by the development of top-notch infrastructure, resulting in an improved overall quality of living in these areas.
The report further states that West Hyderabad remains the preferred residential hub, catering to mid-segment, high-end, and premium categories. On the other hand, micro-markets in North, East, and South Hyderabad are expected to attract mid-segment home buyers. Central Hyderabad is anticipated to sustain demand primarily in the high-end and premium segments.
Preferences of buyers are leaning towards projects falling within two budget brackets (Rs45 lakh – 1 crore and Rs 1 – 1.5 crore).
However, the real estate landscape might witness an increase in budgets due to rising land and development costs coupled with larger unit sizes, the report states. While developers are geared up to continue launching new projects in key micro-markets, there might be a potential impact on delivery timelines and execution capabilities, leading to a rise in unsold inventory.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, commented, “Hyderabad’s transformative journey positions it as a key investment destination. Proactive planning for developers and investors is crucial given the rising land costs and growing demand for larger unit sizes.”
The report also suggests a long-term organic demand spillover from West Hyderabad to other city areas, driven by ongoing industrialization and government-led development initiatives.
In addition to the residential boom, the report anticipates a surge in investment-grade business parks in Hyderabad’s office sector, estimating an addition of 35 to 38 million square feet by 2023-2025.
