Hyderabad’s housing market has surged sharply over the past six years, with average home prices rising 81% between 2019 and 2025 to ₹8,326 per sq ft, according to NoBroker. This makes it the second-fastest growing market after Gurugram, which topped the list with an 85% increase. As new launches become increasingly expensive, the report notes that buyers are shifting toward the resale segment, which continues to offer relatively affordable options and a broader price range.
However, even as prices surged, home sizes have shrunk. In Hyderabad, the average apartment size declined by about 4%, from 1,068 sq ft to 1,025 sq ft, reflecting a ‘shrinkflation’ across major cities.
The sharp price rise has impacted affordability, with nearly 84% of homebuyers in Hyderabad feeling priced out of the sub- ₹1 crore segment, the report noted.
“This is largely due to a structural shift in supply. Developers are increasingly focusing on premium and luxury housing, driven by higher margins and rising land costs. As a result, supply in the affordable and mid-income segments has shrunk, even as demand in these categories continues to rise,” the report said.
“Demand remains strongest in the entry-level segment even as new supply is migrating up the price curve,” the report said, highlighting a widening mismatch between what buyers want and what is being built.
Demand shifts to resale, key micro-markets gain traction
With new launches becoming increasingly expensive, NoBroker said that buyers are turning to the resale market, which continues to offer relatively affordable options and a wider price mix. The resale segment has maintained a more balanced distribution across price categories, catering to first-time buyers and mid-income households.
Within the city, areas such as Kukatpally, Miyapur, Kondapur, Manikonda, and Kokapet have emerged as demand hotspots, driven by a mix of infrastructure upgrades, metro connectivity, and proximity to employment hubs.
Interestingly, Hyderabad also stands out for its unique buyer preference trends. Unlike other cities, standalone properties command higher per-square-foot prices than gated communities in some areas, indicating that buyers prioritise location and connectivity over amenities, NoBroker said.
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The Western corridor leads the housing real estate segment
NoBroker said that the western corridor, anchored by the Financial District, accounted for about 25% of new supply, reinforcing its position as the city’s premium housing hub. Areas such as Tellapur, Kokapet, Neopolis, Narsingi and Rajendra Nagar are witnessing over 20% year-on-year growth, as development spills over from saturated IT micro-markets like Madhapur, Kondapur and Gachibowli. With limited land availability in core hubs, both developers and buyers are shifting toward these western extensions, where larger land parcels and luxury-led projects are driving the next phase of growth. The premiumisation trend here is comparable to the trajectory seen in Jubilee Hills and Banjara Hills a decade ago.
“South Hyderabad, led by the airport corridor, has emerged as the largest contributor, accounting for 33% of total launches. Positioned as an extension of the Financial District, this zone is attracting IT professionals seeking affordable, mid-range housing. Its growth is driven by improved connectivity via the Outer Ring Road and proximity to employment hubs, making it a preferred destination for both end-users and investors targeting medium-term appreciation,” the report said.
In contrast, East Hyderabad, covering Uppal and LB Nagar, continues to anchor the budget housing segment, contributing 13% of new supply. However, growth is expected to moderate to 3% in 2025 as the market absorbs the significant supply added over the past few years. Strong metro connectivity remains a key demand driver, enabling a predictable commute to IT hubs despite longer road distances, thereby sustaining interest from budget and mid-income buyers, NoBroker said.
