Hyderabad's Real Estate market has emerged as a leader in growth compared to other major Indian cities, showcasing distinct characteristics and trends

A vibrant aerial view of Hyderabad showcasing a bustling cityscape with modern skyscrapers, a vast expanse of residential buildings, and a prominent urban lake, highlighting the city's growth and dynamic skyline.

Fastest-Growing Market: Hyderabad has been recognized as the fastest-growing real estate market in India, with a compound annual growth rate (CAGR) of 10% in residential launches over the past decade. In 2023, housing prices in the city increased by 11%, indicating strong demand from both investors and end-users.www.nandakacorp.com

Comparison with Other Cities: In contrast, Bengaluru ranks second in real estate growth but remains the top choice for commercial occupiers. Mumbai-MMR follows in third place, maintaining steady growth across various metrics. Delhi-NCR is noted for its superior physical infrastructure and governance.

Affordability and Market Dynamics

Housing Affordability: Despite being the second most expensive housing market after Mumbai, where EMIs consume about 30% of average household income, Hyderabad offers relatively affordable options compared to cities like Bengaluru and Delhi-NCR. The EMI-to-income ratio in Hyderabad is approximately 30%, while it stands at 28% for Delhi-NCR and 26% for Bengaluru.

Market Challenges: However, recent reports indicate that Hyderabad's market faced challenges, including a significant decline of 58% in new residential launches during the second quarter of 2024. This drop contrasts sharply with growth seen in other cities like Ahmedabad, which experienced a 110% increase in new launches3.

Sales Trends: Additionally, Hyderabad recorded a 14% decline in residential sales, making it one of the underperformers among major Indian metros. In comparison, Bengaluru saw a 30% increase in sales during the same period.

Investment Potential

The city's focus on infrastructure development and a lower cost of living compared to other major cities make it an attractive destination for homebuyers and investors. Government initiatives have further bolstered the real estate sector, particularly in areas like Gachibowli and Hitech City.

In summary, while Hyderabad leads in growth rates and affordability compared to many other major Indian cities, recent challenges such as declining new launches and sales indicate a need for cautious optimism among investors and stakeholders in the real estate sector.

Hyderabad has been recognized as the fastest-growing real estate market in India.