Hyderabad Becomes India’s Second Most Expensive City for Real Estate

Hyderabad has rapidly risen to the top of India's costliest cities list. The city was known up until this point for having reasonably priced homes in comparison to other large cities. However, it is currently India's second most costly real estate market. According to a recent research, Hyderabad's average price per square foot increased from Rs 5,800 to ₹6,000, reflecting an annual growth of 6%. In contrast, prices in Mumbai increased by 3%, from Rs. 9,600 to Rs. 9,800 per square foot.

Numerous reasons have contributed to this increase over the past ten years, including historically low house loan interest rates, reduced stamp fees, changes in circle rates, and incentive programs provided by certain state governments. Despite the sharp increase in the cost of building supplies like steel and cement, builders continue to offer their clients discounts, which is also sustaining demand. Prices in these cities would have skyrocketed if not for these discounts.

Increase in Supply and Demand

Hyderabad saw the most growth in home sales out of India's eight cities. There is a great demand for homes in areas like Bachupally, Tellapur, Gandipet, Dundigal, and Miyapur. Demand is still high in these places even though real estate prices are rising. Remarkably, 36% of the recently launched residential developments have a worth greater than Rs 1 crore. There is a good supply of future housing options in areas like Dundigal, Tellapur, Gopanpally, Bachupally, and Bandlaguda Jagir.