The real estate trend in Hyderabad after Telangana's formation might seem complex with so much happening, but is it still a good time to invest or buy property? The answer is yes! Hyderabad is quickly becoming one of India's most dynamic real estate markets, thanks to growing infrastructure, a thriving IT sector, and increasing urbanization.

According to recent reports, the city's property market is expected to grow 10-20% over the next five years, fueled by rising demand and strategic investments.

This blog will simplify what's driving Hyderabad's property market in 2024. From new residential hotspots to commercial growth in tech corridors, we will walk you through the key trends shaping prices and demand, helping you understand where the opportunities lie and how to take advantage of them.

Current Trends in Hyderabad's Real Estate Market

Hyderabad's real estate market is witnessing notable shifts this year. Strong economic fundamentals, rising population, and government initiatives create a thriving ecosystem for property buyers and investors.

1. Surge in Demand for Residential and Commercial Properties

One of the most visible real estate trends in Hyderabad after Telangana’s formation is the increasing demand for residential and commercial spaces across the city. Residential properties continue to attract buyers due to improved connectivity, lifestyle amenities, and a growing middle-class population. Some stats indicate that:

• Residential demand has surged by 80% in the last 5 years, in Kondapur with Gachibowli, and HITEC City leading the growth.

• The commercial real estate segment is booming, with office space absorption expected to reach 200 million sq. ft. by 2030, driven by IT/ITeS firms and GCCs (Global Capability Centers).

This dual demand drives healthy market activity and opens new opportunities across property types.

2. Notable Growth in Key Localities 

The real estate trend in Hyderabad after Telangana’s rise prominently features rapid development in key localities such as Gachibowli and other suburban areas. These areas are preferred for their proximity to IT parks, educational institutions, and healthcare facilities.

• Gachibowli has seen a 33% price appreciation in the last three years.

• Home prices in suburban areas are expected to jump 10-20% in the next few years as more people look to buy outside city centers.

New residential projects, office complexes, and retail hubs continue to come up, attracting young professionals and investors looking for value appreciation.

3. Property Rate Increase Reflecting Market Demand

With strong buyer interest and limited supply in prime areas, property rates in Hyderabad have seen a consistent upward trend in 2024. This price rise reflects confidence in the market and the city's growing economic stature. 

While certain micro-markets have experienced sharper increases, the appreciation aligns with Hyderabad's expanding infrastructure and commercial growth, making it a promising time for investors and end-users.

Understanding these trends can help you make informed decisions and seize opportunities before you move forward to check the factors that can influence your current market.

Also Read: Top Real Estate Companies and Builders in Bangalore 

Factors Influencing the Real Estate Market

Several factors are fueling Hyderabad's real estate momentum. These drivers boost investor confidence and make the city increasingly attractive for homebuyers seeking a balanced urban lifestyle.

1. Infrastructure Developments

Hyderabad’s real estate growth is closely tied to its expanding infrastructure network. The Outer Ring Road (ORR) continues to improve connectivity across the city, reducing travel time and opening up new residential and commercial zones. Meanwhile, the metro rail expansion makes daily commutes smoother and more efficient, especially in high-demand corridors. 

These projects are boosting property values in peripheral areas and enhancing the overall appeal of the city's real estate market.

2. Government Reforms Including TS-iPASS Act, RERA, and GST

Government changes have made buying and selling property in Hyderabad easier and more transparent. The Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) Act has accelerated approvals, encouraging more developments.

Additionally, the implementation of the Real Estate (Regulation and Development) Act (RERA) and Goods and Services Tax (GST) has increased buyer confidence by ensuring compliance and clarity. These reforms are shaping a more organized and trustworthy market environment.

3. Quality of Life Indices Attracting More Homebuyers

Hyderabad's rising rankings on quality of life indices, covering factors like education, healthcare, and safety, are drawing more homebuyers across India. The city's pleasant climate, cultural heritage, and growing job opportunities in IT and other sectors make it an appealing destination for families and professionals alike.

This demand translates into more substantial interest in residential properties, especially those offering modern amenities and well-planned communities.

Residential Market Growth

Hyderabad's residential sector continues to flourish, with diverse housing options meeting the needs of an expanding population. Let's look at the key trends driving growth and where demand is most concentrated.

1. Rising Demand for Apartments, Gated Communities, and Independent Houses

The appetite for residential properties in Hyderabad is growing steadily, fueled by buyers seeking different living formats. Apartments and gated communities are popular among young professionals and nuclear families due to their security features and shared amenities. At the same time, independent houses remain sought after by buyers looking for privacy and larger spaces.

Developers are responding with projects catering to these varied preferences, delivering various options across price points.

2. Impact of Infrastructure and Connectivity 

Improved infrastructure has a direct impact on the desirability of residential properties. Areas with easy access to ORR, metro stations, and major employment hubs like HITEC City and Gachibowli are witnessing increased demand and appreciation. 

Connectivity reduces commute times and enhances the lifestyle quotient, making these localities prime choices for homebuyers. This trend underscores the importance of transportation links in Hyderabad's real estate growth story.

3. Substantial Registrations in Medchal-Malkajgiri and Rangareddy

The residential markets in Medchal-Malkajgiri and Rangareddy districts are seeing a surge in property registrations.

• Over 24% of registrations were recorded in these areas, signaling strong demand.

• Out of all property registrations, Medchal-Malkajgiri took the top spot with 45%. Rangareddy came in second at 41%, while Hyderabad district accounted for the remaining 14%.

The steady influx of residents into these suburbs fuels new residential developments and supports long-term growth potential. 

Overall, Hyderabad's real estate trend after Telangana's formation continues to showcase strong growth backed by strategic infrastructure development, regulatory reforms, and rising demand for quality living spaces. 

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For investors and homebuyers alike, the commercial city offers promising opportunities to be part of its evolving urban story.

Commercial Real Estate Dynamics

Hyderabad's commercial real estate sector has grown significantly, fuelled mainly by the expanding IT and corporate sectors. The demand for office spaces and innovative work environments continues to rise, reflecting the city's economic resilience and attractiveness as a business hub.

1. Significant Growth in Office Space

Key locations like Hitec City, Gachibowli, and Madhapur are witnessing strong absorption of office spaces, driven by tech companies expanding their footprints. This growth reflects Hyderabad's status as a preferred destination for IT and IT-enabled services (ITES) firms.

Developers are responding with large-scale projects designed to accommodate this rising demand, boosting overall commercial real estate activity.

2. Increase in Co-Working Spaces and Global Capability Centers (GCCs)

The flexible workspace model is gaining traction, with a surge in co-working spaces across Hyderabad. This trend supports startups, SMEs, and multinational corporations seeking agile office solutions.

Global Capability Centers (GCCs) are also expanding, offering centralized hubs for global companies to operate efficiently. These centers drive leasing activity and contribute to Hyderabad’s commercial real estate market.

3. Large Transaction Volumes Reflecting a Healthy Economy

The volume of commercial real estate transactions in Hyderabad has grown substantially in 2024, signaling strong investor confidence. High-value deals across office complexes and mixed-use developments highlight the city's economic health and its appeal as a commercial hotspot.

This transaction growth views Hyderabad's expanding role as a key player in India's real estate market and helps to visualize the emerging submarket. 

Must Read: Beginner's Guide to Getting Started with Commercial Real Estate Investing 

Emerging Submarkets and Investment Opportunities

Alongside established hubs, Hyderabad is witnessing rapid development in new submarkets. These areas are attracting attention for their growth potential, rental demand, and luxury offerings.

1. Development Spur in Regions Like Gachibowli and Nallagandla

Gachibowli is a top choice for investors, with property values growing by 86%, which is great for businesses and homeowners. Meanwhile, Nallagandla is also becoming the go-to spot for buyers who want luxury at a smart price, thanks to its stylish new housing projects.

2. Consistent Demand for Rental Properties in Strategic Areas

With a growing working population and influx of professionals, demand for rental housing remains strong in key localities. Areas near major IT corridors and business districts consistently attract tenants seeking convenience and quality living.

Areas like Kondapur and Madhapur see the highest rental demand. This steady rental demand offers attractive yields for investors focusing on Hyderabad's residential rental market.

3. Growth in Luxury Real Estate Projects

Luxury real estate is also on the rise, with premium projects offering high-end amenities and modern designs. Locations such as Jubilee Hills and Banjara Hills continue to see upscale developments catering to affluent buyers.

The increasing interest in luxury properties reflects Hyderabad's expanding economic base and the lifestyle aspirations of its residents.

By understanding these trends in Hyderabad's commercial and residential sectors, investors and buyers can strategically position themselves to benefit from the city's real estate growth.

Connectivity and Infrastructure Enhancements

Hyderabad’s real estate market is heavily influenced by ongoing and planned infrastructure projects that improve connectivity and accessibility, making it an attractive destination for homebuyers and investors alike.

1. National Highway Network and Railway Connectivity

The city benefits from an extensive national highway network linking it to key business hubs and neighboring states. Improved road infrastructure has eased commuting, opening up new residential and commercial zones. 

Additionally, enhanced railway connectivity, including suburban rail projects, is making travel more convenient for residents and professionals, which is positively impacting real estate demand in peripheral areas.

2. Impact of Rajiv Gandhi International Airport on Real Estate

Rajiv Gandhi International Airport serves as a vital gateway, boosting Hyderabad’s connectivity both domestically and internationally. 

Its strategic location near emerging residential and commercial zones has spurred rapid real estate development in surrounding areas. The airport’s expansion plans further strengthen the appeal of properties in this corridor, attracting both end-users and investors.

3. Ongoing and Proposed Infrastructure Projects 

Several key infrastructure projects are underway or in planning stages, including metro rail extensions, expressways, and IT corridor developments. These initiatives not only improve accessibility but also enhance the overall livability of Hyderabad. 

Areas near these projects are witnessing increased interest due to better connectivity, future growth potential, and rising commercial activity.

Challenges and Market Risks

While the real estate trend in Hyderabad shows steady growth, potential buyers and investors should remain aware of certain challenges that could impact market stability.

1. Regulatory Changes Affecting Market Dynamics

Recent shifts in real estate regulations, land use policies, and tax structures have introduced a degree of uncertainty. Staying updated on these changes is essential, as they can affect project approvals, pricing, and investment returns. Market participants who proactively monitor regulatory developments will be better positioned to mitigate risks.

2. External Economic and Political Factors

Like many markets, Hyderabad’s real estate sector is influenced by broader economic and political conditions, both at the national and global levels. Fluctuations in interest rates, inflation, or policy changes can impact buyer sentiment and investment flows. Awareness of these external factors is crucial for making timely decisions.

3. Need for Balanced Supply-Demand to Avoid Market Volatility

Ensuring a healthy balance between supply and demand remains a challenge, especially with rapid development in certain localities. Oversupply in some segments can lead to price corrections and delayed project completions, affecting investor confidence. Careful market analysis and strategic investments are key to navigating these fluctuations.

Conclusion

The real estate trend in Hyderabad after Telangana's formation continues on a strong growth path in 2025, fueled by infrastructure upgrades and the booming IT sector. Enhanced connectivity and supportive government initiatives make Hyderabad one of India's most promising real estate markets.

That said, staying updated on market movements, regulatory changes, and external economic factors is key for buyers and investors aiming to seize the best opportunities while managing risks effectively. Being well-informed will allow you to make confident decisions in Hyderabad's dynamic real estate market.

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