Rama Krishna Sangem
Hyderabad real estate is in a sort of slowdown, as per the market analysts. But actual figures and trends point to a stable going on. A latest bulletin from Knight Front India, real estate consultancy, Hyderabad recorded around 6,500 house registrations at a value of around Rs 4,500 crore.
The report also says that houses and flats in apartments of value above Rs 1 crore are in more demand, compared to those in the below level are moving slowly. That means, people are asking for spacious homes with all facilities. Lower and middle income people too are looking for bigger homes.
June 2025, the Hyderabad real estate market saw a 6% year-on-year increase in the total value of registered homes, driven by a surge in demand for properties priced above ₹1 crore, according to Knight Frank India. While the total transaction value reached ₹4,587 crores, the number of registered residential units decreased by 9% year-on-year.
Overall Growth is healthy. The market saw a 6% increase in the total value of registered homes, despite a 9% drop in the number of units registered. Premium Housing Demand looks stable..There was a clear trend towards higher-value properties, with registrations of homes priced at ₹1 crore and above increasing by 12%, according to Knight Frank.
Shifting Preferences are observed. There’s a growing preference for larger homes, with 69% of registrations being for units between 1,000 to 2,000 square feet and an increase in the share of homes above 2,000 sq ft, reports Knight Frank.
Medchal-Malkajgiri lead the way
Surroundings lead boom. Medchal-Malkajgiri led with 45% of registrations, followed by Rangareddy with 41%, and Hyderabad district with 14%, according to Knight Frank. Potential Slowdown is not ruled out. While the overall market showed growth in value, some reports indicate a slowdown in the number of registrations, especially in the affordable and mid-range segments.
Commercial Market:
Record Office Space Absorption is noticeable. The first quarter of 2025 saw Hyderabad record 4 million square feet of office space transactions, a 31% year-on-year growth, says Knight Frank.
Strong Leasing Activity is picking up. The commercial market was boosted by strong leasing from IT firms and GCCs. Rents: are rising. Average office rents also saw a significant 9% year-on-year increase, reaching ₹72 per square foot per month. Flex Space too is growing. Flex spaces and managed offices have also seen substantial growth, according to a Knight Frank report.
Overall outlook:
The report suggests a cautious recovery in the real estate market, with a mix of growth in certain segments and a slowdown in others. Developer sentiment has increased due to easing financing conditions and a pickup in high-ticket residential demand.
But focus is on Premium Housing:The premium housing segment remains strong, reflecting resilient buyer confidence and evolving real estate dynamics. More villa projects are coming up as infrastructure companies prefer higher returns and assured sales. Of course, villa projects take more gestation time and involve higher interest burden on them.
