Hyderabad's Luxury Real Estate Defies Market Slowdown with 17% Growth in Premium Sales

Recent market data from Hyderabad reveals that the city's residential property sector experienced contrasting trends in the first half of 2025, with industry analysts reporting that while overall property sales witnessed a decline of approximately 6% compared to the same period last year, the premium housing segment demonstrated remarkable resilience with substantial growth figures.

Premium Housing Segment Shows Strong Performance

Market research indicates that properties valued at ₹1.5 crore and above recorded impressive sales figures, with 8,205 units sold during the first six months of 2025. This represents a significant year-on-year increase of 17% compared to H1 2024 and a notable 31% surge when compared to the corresponding period in 2023.

Industry experts note that the mid-premium segment, encompassing properties priced between ₹1.5 crore and ₹3 crore, witnessed particularly strong momentum with sales jumping nearly 28% compared to the first half of 2024. The high-luxury segment, featuring properties above ₹3 crore, contributed over one-third of the total sales value, underlining the growing appetite for premium homes with modern amenities in the city.

Market Positioning and Regional Comparison

Real estate analysts report that Hyderabad has now secured its position as the second most expensive housing market in India, trailing only behind the National Capital Region. This positioning reflects the city's growing prominence as a preferred destination for high-value real estate investments.

Geographic Distribution of Premium Sales

Market data reveals that the western suburbs emerged as the primary driver of luxury housing sales, with specific localities showing exceptional performance. Areas including Kokapet, Puppalguda, Narsingi, and Kondapur collectively accounted for approximately 85% of all premium housing transactions during the period under review.

Property consultants observe that buyer preferences have increasingly shifted towards villas and smart home developments, with growing demand for duplexes, triplexes, and environmentally conscious projects featuring advanced technology integration.

Affordable Housing Segment Faces Challenges

In stark contrast to the premium segment's performance, market analysts report that the affordable housing category experienced a significant downturn, with sales declining by 32% year-on-year. Industry observers attribute this decline to multiple factors including escalating input costs, limited supply in budget-friendly segments, and a strategic shift among developers towards higher-margin luxury projects.

Factors Driving Luxury Market Growth

Real estate experts identify several key factors contributing to the robust performance of the premium housing sector. Limited inventory availability has created scarcity-driven demand, while ongoing infrastructure development including metro expansion and improved road connectivity has enhanced buyer confidence in high-value investments.

The sustained growth of Hyderabad's IT sector continues to attract both domestic and international investors, with non-resident Indians showing particular interest in the city's real estate market due to its competitive pricing compared to Mumbai and NCR, combined with strong appreciation potential.

Future Market Outlook

Industry forecasts suggest that the premium housing trend is expected to continue through the latter half of 2025, with western suburbs and emerging zones like Nallagandla likely to maintain their leadership in growth metrics. However, experts caution that the affordable housing segment may continue to face headwinds unless policy interventions and improved financing solutions enhance accessibility for budget-conscious buyers.

The market's trajectory aligns with broader trends observed in Hyderabad's suburban surge and premium housing market dynamics, suggesting sustained momentum in the luxury real estate sector while highlighting the need for balanced development across all housing segments.