Hyderabad Real Estate Market Records Strong Growth in Q3 2025; Prices Rise 13–19%

Hyderabad’s real estate market continues its strong upward trajectory, with property prices increasing by 13–19% year-on-year in Q3 2025, according to the latest Knight Frank–NAREDCO Real Estate Sentiment Index. The city, alongside NCR and Bengaluru, remains a key driver of residential price momentum, supported by solid demand in high and upper-mid income housing categories.

India’s overall real estate outlook also strengthened in Q3 2025, powered by robust office leasing, resilient high-end residential activity, and favourable economic conditions such as stable interest rates, easing inflation, and improved liquidity.

South Zone Leads Sentiment Scores

The South Zone emerged as the most optimistic region with a sentiment score of 62, backed by strong leasing activity in Bengaluru and Hyderabad and sustained demand for premium housing.

Current Sentiment Score: Up to 59 from 56 last quarter

Future Sentiment Score: Steady at 61

Both indicators highlight consistent optimism among real estate developers, investors, and financial institutions.

Office Leasing Fuels Market Growth

Hyderabad’s commercial real estate sector continues to show structural depth, with a robust pipeline of office leasing deals. The city remains a preferred destination for corporates and tech companies, further strengthening overall market performance.

Developers and lenders continue to view Hyderabad as a high-growth market, especially in the premium residential segment where demand remains consistently strong.

Luxury Housing Gains Prominence

The survey shows that:

• 71% expect new residential launches to stay stable or rise, with developers prioritizing higher-ticket projects.
• 74% anticipate residential sales to remain stable or improve, a significant jump from 52% in Q2 2025.
• 92% expect prices to either remain steady or increase, reflecting sustained buyer confidence in the city.

This shift towards premium and luxury housing is driven by demand-supply balance and Hyderabad’s growing appeal among affluent homebuyers.

Favourable Economic Conditions Boost Confidence

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said:

“The sustained optimism reflected in the Q3 Sentiment Index underscores the sector’s resilience and adaptability. Demand in the premium residential segment remains healthy, while the office market continues to demonstrate structural depth with strong leasing pipelines. Stable interest rates, easing inflation, and improved liquidity have reinforced overall sentiment.”

The report attributes market confidence to stable interest rates, benign inflation, and healthy domestic liquidity, all of which continue to support Hyderabad’s real estate growth.

Outlook: Momentum Set to Continue Into 2026

As the city heads into 2026, experts anticipate Hyderabad will maintain strong momentum across both residential and commercial sectors. The combination of high office leasing activity, rising demand for premium homes, and supportive macroeconomic factors positions Hyderabad as one of India’s most dynamic and resilient real estate markets.

The 13–19% YoY price rise in Q3 2025 signals robust demand and constrained supply in the premium segment—further strengthening Hyderabad’s reputation as a preferred destination for investors and homebuyers seeking quality developments in prime locations.