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Hyderabad’s real estate market in the first half of 2025 told two very different stories. On one hand, the overall residential segment saw a slowdown, with total sales dipping 6% year-on-year due to a combination of higher interest rates, global economic uncertainty, and cautious buyer sentiment. On the other, the city’s premium housing market moved in the opposite direction, recording a strong upswing.
According to industry data, Hyderabad premium housing sales grew 17% compared to H1 2024, reaching 8,205 units between January and June this year. These are homes priced at ₹1.5 crore and above properties that not only offer prime locations and larger spaces but also appeal to a growing segment of buyers looking for lifestyle-driven investments. This growth highlights how demand at the top end of the market remains resilient, even when the broader sector experiences a slowdown.
Surge in the Premium Housing Segment
The premium segment’s performance in H1 2025 was particularly striking. Out of all residential transactions in Hyderabad, nearly one in every two homes sold belonged to the ₹1.5 crore and above category. That’s a market share of 49%, up from 40% during the same period last year.
Drilling down further, the ₹1.5–₹3 crore bracket saw the steepest rise, with sales jumping 28% year-on-year. This price range has become a sweet spot for buyers seeking modern apartments, penthouses, and villas equipped with high-end amenities.
The demand is being driven by a combination of factors:
- Tight supply of prime properties in core and well-connected areas has encouraged buyers to act faster to secure desirable units.
- Rising incomes among IT, finance, and entrepreneurial professionals who have both the means and the appetite for luxury living.
- Lifestyle upgrades post-pandemic, with more people valuing larger homes, private workspaces, wellness facilities, and community amenities.
- Long-term investment appeal, as premium homes often retain value better during market corrections compared to mid-range properties.
Also Read: Metro Fuels Property Prices in Micro Markets: 24–139% Surge Across India’s Top Real Estate Hotspots
Western Suburbs Lead the Market
If there’s one part of Hyderabad that defines premium living right now, it’s the western corridor. This region accounts for an overwhelming 85% of the city’s premium housing sales, making it the undisputed leader in the segment.
Neighbourhoods like Kokapet, Puppalguda, Narsingi, and Kondapur are consistently attracting high-income buyers. These areas tick all the right boxes:
- Proximity to HITEC City and the Financial District, which house Hyderabad’s biggest employment hubs.
- Well-developed social infrastructure, including international schools, specialised hospitals, retail centres, and dining options.
- Gated communities with top-tier amenities from landscaped gardens and swimming pools to clubhouses and co-working spaces.
- Established reputations as premium neighbourhoods make them a safer bet for investors.
Developers in these western micro-markets have also been quick to respond to demand, launching projects that blend luxury with functionality, ensuring both lifestyle appeal and long-term appreciation potential.
Expert Insights
Market experts believe the premium segment is not just an outlier but a trend that will continue shaping Hyderabad’s real estate story. As one senior industry analyst explained, “Premium housing has evolved from being a luxury purchase to a lifestyle necessity for a growing segment of buyers. For many, it’s not about owning a bigger home it’s about securing a better living environment, higher security, and proximity to urban conveniences.”
Another perspective is that investors are gravitating toward premium properties because they perceive them as safer, inflation-resistant assets. While mid-market housing can see sharper fluctuations in times of economic uncertainty, the top-tier segment tends to be more insulated, supported by end-user demand rather than speculative buying.
Outlook for Emerging Submarkets
While the western belt currently dominates, Hyderabad’s northern suburbs including Kompally, Bachupally, Miyapur, and Kollur are increasingly being viewed as the next wave of growth.
These areas are benefitting from:
- Infrastructure upgrades, such as wider roads, flyovers, and proposed metro line extensions.
- New social infrastructure, including educational institutions, healthcare facilities, and retail hubs.
- Competitive pricing compared to the western suburbs, making them attractive to buyers seeking more space for the same investment.
- Larger land parcels that enable low-density, gated developments a key draw for families seeking privacy and open space.
While these northern markets are still in the early stages of premium development, they have the potential to replicate the growth story of the western corridor over the next 5–7 years.
Economic and Demographic Drivers
Hyderabad’s economic ecosystem continues to fuel housing demand at the top end. The city remains a magnet for talent in the IT, biotechnology, pharmaceutical, and financial services industries. Multinational corporations setting up operations here are also creating a steady influx of skilled professionals who prefer settling in premium residential enclaves.
Government initiatives, such as infrastructure expansion projects, business-friendly policies, and urban development schemes, are enhancing connectivity and liveability. The presence of a well-educated, upwardly mobile workforce is not just increasing demand but also raising expectations for quality, design, and amenities in new housing projects.
Also Read: Urban Extension Road (UER) II: Transforming Connectivity and Real Estate in Delhi NCR
Conclusion
The consistent rise in Hyderabad's premium housing sales, despite an overall slowdown in the city’s property market, signals a long-term structural change. The market is no longer driven solely by affordability; lifestyle aspirations, location advantages, and investment stability are now key factors shaping demand.
The western suburbs will likely retain their leadership role for the foreseeable future, but the northern corridor is already positioning itself as the next premium hotspot. For investors, the strategic move will be to identify micro-markets with robust infrastructure pipelines and strong end-user appeal. For homebuyers, it’s about balancing lifestyle needs with long-term value something Hyderabad’s evolving premium housing market is increasingly well-equipped to offer.
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Ans 1. Premium housing refers to homes priced at ₹1.5 crore and above, typically offering prime locations, larger floor plans, and high-end amenities.
Ans 2. It recorded a 17% year-on-year growth, with 8,205 units sold, even as the overall residential market saw a 6% decline.
Ans 3. The ₹1.5–₹3 crore range grew the fastest, with sales rising 28% compared to H1 2024.
Ans 4. Limited supply in prime areas, rising incomes among professionals, post-pandemic lifestyle upgrades, and the long-term investment appeal of luxury properties.
Ans 5. The western suburbs especially Kokapet, Puppalguda, Narsingi, and Kondapur account for 85% of premium sales.
Ans 6. It offers proximity to employment hubs like HITEC City and the Financial District, top social infrastructure, and premium gated communities.
Ans 7. Yes, northern suburbs such as Kompally, Bachupally, Miyapur, and Kollur are gaining traction due to infrastructure upgrades and competitive pricing.
Ans 8. Hyderabad’s thriving IT, biotech, pharma, and finance sectors attract high-income professionals seeking quality housing near work and amenities.
Ans 9. Yes, it tends to hold value better than mid-market housing, as demand is driven by end-users rather than speculative investors.
Ans 10. Experts expect continued growth, with the western corridor retaining dominance while northern markets emerge as the next big premium hubs over the next 5–7 years.