Hyderabad Becomes India’s Second Most Expensive City for Real Estate
Once considered an affordable alternative to India’s major metro cities, Hyderabad has now emerged as the second most expensive city in the country for buying residential property, after Mumbai.
Hyderabad: Once considered an affordable alternative to India’s major metro cities, Hyderabad has now emerged as the second most expensive city in the country for buying residential property, after Mumbai.
Table of Contents
According to data from Proptiger.com, property prices in Hyderabad have seen a 6% year-on-year growth, making it one of the fastest-growing housing markets in India.
Hyderabad Sees 6% Rise in Property Prices
As per the latest report, average property prices in Hyderabad rose from Rs 5,800 per sq.ft. to Rs 6,000 per sq.ft. in just one year. In comparison, Mumbai — still holding the top spot — saw a more modest 3% increase, from Rs 9,600 to Rs 9,800 per sq.ft.
Also Read: Raghav Juyal on ‘Kill’: “It Scared Me, But I Fell in Love with Acting Again”
This significant rise positions Hyderabad just below Mumbai in terms of real estate cost, surpassing other major cities like Delhi, Bengaluru, and Chennai.
Affordable Housing Demand at Decade-High
Despite the surge in prices, the demand for affordable housing has hit a 10-year high. This growth is attributed to:
- Historically low home loan interest rates
- Reduced stamp duties in several states
- Revisions in circle rates
- Incentives for first-time buyers from government and private builders
These factors have fueled buying activity, especially in the mid and affordable housing segments.
Construction Costs Rising, But Discounts Continue
At the same time, construction material prices — particularly cement and steel — have also gone up, putting pressure on developers. However, in an effort to keep buyers interested, builders are offering attractive discounts and payment plans.
Industry experts warn that if material prices continue to rise unchecked, cities like Hyderabad could see even sharper increases in apartment prices over the coming months.
Hyderabad’s transformation into a real estate hotspot reflects its rapid urban development, infrastructure growth, and investment appeal. However, rising prices also pose a challenge to affordable housing accessibility in the long run.
