Hyderabad Real Estate Sees 22% Rise in House Rents in Q1 2025

The rental housing market in Hyderabad saw significant growth in the first quarter of 2025, driven by a sharp rise in demand and a decrease in available supply. Recent data shows a 22% increase in rental demand compared to the same period in 2024, while supply dropped by 2.1%. As a result, average rental prices across the city have risen by 4.5%.

The western parts of Hyderabad, particularly Gachibowli and Madhapur, are witnessing the highest demand for rental homes. These areas are favored for their proximity to major IT corridors, office spaces, and excellent connectivity through the Outer Ring Road (ORR). Tenants are primarily seeking homes with a built-up area between 1,000 and 1,500 sq. ft., with monthly rents ranging from ₹25,000 to ₹35,000.

Rising property values have led many homeowners to sell their properties instead of renting them out, which has contributed to the decreasing rental housing supply. As more property owners opt for profitable sales over long-term rentals, the market continues to face supply shortages.

Currently, rental demand accounts for 50% of the overall housing market, while supply lags behind at 39%. This mismatch is expected to keep rents rising and competition among renters high.

Experts predict that the rental market will remain active and competitive throughout the rest of the year, especially in areas close to employment zones and transit infrastructure, where demand continues to outpace supply.