Hyderabad’s residential real estate market is currently witnessing a significant premiumization trend, according to the latest report from Knight Frank India. This trend is characterized by a noticeable increase in high-value home sales, as buyers show an increasing preference for larger living spaces with enhanced amenities. While the overall number of property registrations has remained stable, the total value of homes registered in the city has surged by 5% year-over-year (YoY). This growth is particularly evident across four key districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy. These areas encompass transactions from both the primary and secondary real estate markets, indicating a healthy and dynamic property landscape.
Properties priced below Rs 50 lakh have dominated registrations; however, a clear shift toward premiumisation is taking place. Homes valued at Rs 1 crore and above have seen a remarkable 12% increase in registrations YoY as of January 2025. This shift underscores a growing demand for high-value properties among homebuyers, reflecting evolving lifestyle aspirations and economic stability. The majority of registered properties in Hyderabad fall within the 1,000 to 2,000 square feet range, accounting for 69% of all transactions, while units exceeding 2,000 square feet now represent 14% of the total. The Medchal-Malkajgiri district stands out, contributing a substantial 45% of property registrations, closely trailed by Rangareddy at 41% and Hyderabad district at 14%.
Rising Demand for Larger Living Spaces
The recent data highlights a significant shift in the preferences of homebuyers in Hyderabad, with a marked interest in larger living spaces. Properties sized between 1,000 and 2,000 square feet have become the most popular choice, representing a staggering 69% of all registrations. This trend reflects the growing demand for spacious homes that cater to modern lifestyles, where families seek more room for comfort and functionality. Additionally, units larger than 2,000 square feet have witnessed a slight increase in popularity, accounting for 14% of total registrations, up from 13% the previous year.
This surge in demand for larger properties is indicative of changing buyer priorities, as many are now willing to invest in homes that provide superior amenities and ample space. Notably, the top five property deals in January 2025 involved transactions of homes exceeding 3,000 square feet, with values soaring above Rs 5.5 crore. These transactions predominantly occurred in affluent areas of West and Central Hyderabad, further emphasizing the trend toward premium living. As buyers continue to prioritize quality and space in their home purchases, the residential market in Hyderabad is expected to evolve and expand further.
Economic Factors Driving Premiumization
The ongoing premiumisation trend in Hyderabad’s residential market is fueled by several economic factors that contribute to buyer confidence. Knight Frank India’s Chairman and Managing Director, Shishir Baijal, noted that the stability in sales during January 2025 reflects a robust economic environment and enhanced lifestyle aspirations. The weighted average price of transacted residential properties has also shown a year-over-year increase of 3% in January 2025, indicating a healthy appreciation in property values.
Among the districts, Medchal-Malkajgiri has experienced the most significant price rise, recording an impressive 11% YoY increase. This upward trend in property values is likely to attract both domestic and international investors, further solidifying Hyderabad’s reputation as a thriving real estate hub. The combination of a stable economy, a growing job market, and evolving lifestyle demands is creating a favorable atmosphere for high-value home transactions. As more buyers seek luxurious living experiences that offer both comfort and prestige, the residential market in Hyderabad is poised for continued growth and transformation.
Conclusion: The Future of Hyderabad’s Residential Market
In summary, the residential market in Hyderabad is undergoing a significant transformation, marked by a clear shift towards premiumisation and larger living spaces. The latest report from Knight Frank India illustrates how high-value property sales are on the rise, with a substantial increase in registrations for homes priced above Rs 1 crore. This trend is not only reflective of changing buyer preferences but also highlights the city’s economic stability and evolving lifestyle aspirations.
As the demand for larger, more luxurious properties continues to grow, it is evident that Hyderabad’s residential market is adapting to meet the needs of its discerning buyers. The future looks promising, with continued investment in high-value real estate expected to drive the market forward. Stakeholders in the real estate sector must remain attuned to these trends and adapt their strategies accordingly to capitalize on the burgeoning demand for premium living spaces. With Hyderabad establishing itself as a key player in the Indian real estate landscape, the coming years will likely see further advancements and opportunities in this vibrant market.
