Hyderabad Real Estate Roars! Surge in Sales of Luxury Spacious Homes

Hyderabad's real estate market is still seeing a significant premiumization trend, as evidenced by rising sales of expensive properties with more room and better amenities. According to the most recent analysis by Knight Frank India, the total value of properties registered increased by 5% year over year (YoY), even though overall property registrations stayed constant.

The Hyderabad residential market encompasses transactions from main and secondary real estate markets and is spread over four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

Registrations for properties under Rs. 50 lakh remained the most common. However, there has been a noticeable shift towards premiumization, as evidenced by the 12% YoY increase in January 2025 in homes valued at Rs. 1 crore and above, which reflects a growing demand for high-value real estate.

Sixty-nine percent of all registered properties in Hyderabad were between 1,000 and 2,000 square feet. In the meantime, 14% of units were larger than 2,000 square feet, which is an increase from 13% in January 2024.

With 45% of property registrations at the district level, Medchal-Malkajgiri dominated the market, followed by Rangareddy (41%), and Hyderabad district (14%).

In January 2025, the weighted average price of residential properties sold increased by 3% year over year. Interestingly, Medchal-Malkajgiri saw the most price increase, up 11% year over year.

Homebuyers are increasingly investing in larger, ultra-luxury residences with first-rate facilities, even outside the bulk of transactions. Properties larger than 3,000 square feet and priced at more than Rs. 5.5 crore were included in the top five real estate transactions in January 2025. Two of these were in Central Hyderabad, and three were in West Hyderabad.