HYDERABAD, JULY 11, 2025 — Hyderabad’s residential real estate market recorded an 11% year-on-year price surge, with eastern and southern localities like LB Nagar and Bandlaguda emerging as the city’s top growth hotspots, according to Knight Frank India’s latest analysis.
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Table of Contents
Key Findings of Hyderabad Property Prices Surge
- Overall Market Growth: Hyderabad’s average property prices rose to ₹6,164 per sq ft in Q1 2025, outpacing national trends .
- LB Nagar’s Record Surge: Prices skyrocketed 51.54% YoY, hitting ₹16,788 per sq ft—the highest appreciation citywide .
- Bandlaguda’s Momentum: Prices range from ₹4,800–₹18,000 per sq ft in Bandlaguda Jagir, while the core area averages ₹5,863 per sq ft .
Driving Forces Behind the Boom
Infrastructure Expansion is the primary catalyst:
- LB Nagar: Boosted by the Hyderabad Metro’s Phase II extension linking Hayathnagar and enhanced access to the Financial District. Proximity to institutions like Johnson Grammar School and Kamineni Hospitals amplified demand .
- Bandlaguda: New road networks and metro connectivity to Nagole (2 km) elevated its appeal. The area also offers 35+ verified properties, with luxury homes (₹1.75 Cr–₹2.6 Cr) dominating recent listings .
Market Dynamics
- High-Value Dominance: Homes priced above ₹1 crore surged 37% YoY in May 2025, contributing 49% of Hyderabad’s total registration value (₹4,302 crore) .
- Rental Yields Climb: Projected to rise from 2–3% to 5%, reflecting strong investor confidence .
- Peripheral Appeal: Emerging districts like Sangareddy (21% price growth) and Rangareddy (12%) gained traction as buyers sought value near infrastructure corridors .
Contrasting Trends
While LB Nagar and Bandlaguda thrived, Rajendra Nagar saw a 6% price dip. Overall residential sales dipped marginally (1% YoY), though premium segments remained resilient .
Outlook
Knight Frank forecasts 10–20% price growth over the next 3–5 years in areas linked to metro expansions and IT corridors. With the Telangana Rising 2047 plan accelerating infrastructure, LB Nagar and Bandlaguda are poised to sustain their lead as Hyderabad’s top investment zones .