Hyderabad Real Estate: Property Prices Rise 81% Despite Weak Sentiment

The housing market in Hyderabad has witnessed a significant surge over the last few years, with property prices rising steeply. According to a recent report by NoBroker, average residential rates have increased by nearly 81% between 2019 and 2025, reaching around ₹8,326 per square foot. This makes Hyderabad one of the fastest-growing real estate markets in the country, second only to Gurugram, which recorded an even higher growth rate.

Rising Prices, Shrinking Home Sizes

While prices have gone up sharply, the size of homes has slightly reduced. The average apartment area in Hyderabad has dropped from around 1,068 sq ft to 1,025 sq ft, indicating a trend often referred to as “shrinkflation.” This reflects a broader pattern seen across major cities, where developers are adjusting unit sizes to manage rising costs.

Affordability Takes a Hit

The rapid increase in prices has made it harder for many buyers to enter the housing market. A large percentage of home seekers—nearly 84%—now find it difficult to purchase properties in the under ₹1 crore category. This shift highlights growing concerns around affordability, especially for middle-income and first-time buyers.

Shift Toward Premium Housing

One of the key reasons behind this trend is the changing focus of developers. Builders are increasingly concentrating on high-end and luxury housing projects, which offer better profit margins. At the same time, rising land prices have further pushed developers toward premium segments. As a result, the supply of affordable and mid-range homes has reduced, even though demand in these segments remains strong.

Buyers Moving to Resale Market

With new projects becoming costlier, many buyers are now exploring the resale market. Resale properties continue to offer more budget-friendly options and a wider range of pricing, making them attractive for those looking to buy within a limited budget. This segment is especially popular among first-time homebuyers and families seeking value for money.

Key Areas Driving Demand

Several localities within Hyderabad have emerged as popular residential hubs. Areas like Kukatpally, Miyapur, Kondapur, Manikonda, and Kokapet are witnessing strong demand. Factors such as improved infrastructure, better connectivity through metro services, and proximity to IT and business hubs are driving interest in these regions.

Changing Buyer Preferences

Interestingly, Hyderabad’s property market is also seeing unique buying patterns. In some locations, independent houses are commanding higher prices per square foot compared to gated communities. This suggests that many buyers are prioritizing location, accessibility, and connectivity over additional amenities.