Hyderabad Real Estate in 2025: Market Continues to Decline

Hyderabad's real estate sector started 2025 on an uncertain note, with the market showing little to no growth in residential property registrations. Data from Knight Frank India reveals that while high-value home sales are on the rise, overall registrations in January 2025 recorded a marginal decline compared to the same period last year.

Flat Growth in Residential Registrations

According to Knight Frank India's latest report, a total of 5,444 residential properties were registered in Hyderabad during January 2025, slightly lower than the 5,454 registrations in January 2024. While the drop appears minimal, it reflects the cautious sentiment prevailing in the real estate market.

Premium Housing Demand on the Rise

Despite the overall stagnation, the trend of premiumization in Hyderabad's housing market continues to strengthen. Properties priced at Rs.1 crore and above saw a notable 12% year-on-year (YoY) increase, highlighting the growing demand for luxury homes with larger spaces and enhanced amenities.

In contrast, registrations for affordable housing under Rs.50 lakh declined by 3% YoY, with 3,282 registrations in January 2025 compared to 3,387 in January 2024. Mid-segment properties priced between Rs.50 lakh and Rs.1 crore showed a slight increase of 3%, with 1,359 registrations this year compared to 1,319 last year.

Breakdown of Registrations by Price Segment

Properties priced under Rs.50 lakh witnessed a decline in registrations, dropping from 3,387 in January 2024 to 3,282 in January 2025. Meanwhile, mid-segment properties between Rs.50 lakh and Rs.1 crore saw a modest increase, with registrations rising from 1,319 to 1,359 in the same period. The high-end segment, with properties priced above Rs.1 crore, experienced the most significant growth, increasing from 738 registrations in January 2024 to 823 in January 2025, marking a 12% rise.

Majority of Registrations in Mid-Sized Properties

Properties sized between 1,000 and 2,000 square feet dominated the market, accounting for 69% of all registrations. This indicates a sustained preference for mid-sized homes catering to both premium and mid-income buyers.

Geographical Distribution of Registrations

At the district level, Medchal-Malkajgiri emerged as the leader, accounting for 45% of total property registrations. Rangareddy followed closely with a 41% share, while Hyderabad district contributed the remaining 14%.

Expert Take on Market Trends

Shishir Baijal, Chairman and Managing Director of Knight Frank India, highlighted the shift towards high-value homes, stating, “The demand for premium housing continues to grow, with registrations for properties priced above Rs.1 crore surging by 12% YoY. This trend is driven by strong economic fundamentals and evolving lifestyle aspirations.”

While Hyderabad’s real estate sector remains stable overall, the rising demand for premium housing suggests a shift in buyer preferences towards more luxurious living spaces. Market watchers will be keen to see whether this trend continues in the coming months.