Is Hyderabad’s Real Estate in Trouble? Market Shows Persistent Decline in 2025
According to the latest report by Knight Frank India, there has been a slight decline in the number of residential property registrations in January 2025 compared to the same month last year, reflecting uncertain market conditions.
Hyderabad: The Hyderabad real estate sector has begun the year 2025 on a subdued note, with little growth observed in the registration of residential properties.
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According to the latest report by Knight Frank India, there has been a slight decline in the number of residential property registrations in January 2025 compared to the same month last year, reflecting uncertain market conditions.
Decline in Residential Property Registrations in January 2025
The data on property registrations for January 2025 shows a slight decrease in the number of residential properties registered, standing at 5,444 compared to 5,454 registrations in January 2024. Although the drop of just 10 registrations might seem minor, it suggests a lack of strong momentum in the real estate market as the new year kicks off.
Hyderabad’s Shift Toward Premiumization
Despite the overall dip, the Knight Frank India report highlights the continuing trend of “premiumization” in Hyderabad’s real estate market. The sale of high-value homes, featuring larger living spaces and enhanced amenities, has seen a notable rise. Homes priced above Rs. 1 crore recorded a 12% increase YoY in January 2025, signaling a growing preference for premium properties.
In contrast, residential properties priced under Rs. 50 lakhs saw a 3% decrease in registrations, with 3,282 properties registered in January 2025 compared to 3,387 in the same period last year. This drop indicates a shift in buyer preferences toward higher-value properties.
Strong Preference for Homes Priced Above Rs. 1 Crore
The data reveals a promising trend for the high-end residential market, with the number of homes registered above Rs. 1 crore increasing from 738 in January 2024 to 823 in January 2025. This 12% rise YoY reflects the growing demand for luxury and premium housing in the city.
Popularity of Mid-Sized Homes
The report also noted that the majority of registered properties in Hyderabad were in the range of 1,000 to 2,000 square feet, which accounted for 69% of all registrations. This suggests that mid-sized homes remain popular among buyers, offering a balance between affordability and space.
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District-Wise Property Registration Distribution
At the district level, Medchal-Malkajgiri led with the highest share of property registrations, accounting for 45% of the total, followed closely by Rangareddy, which contributed 41% of the registrations. Hyderabad district accounted for the remaining 14% of the total residential property registrations.
Economic Fundamentals Behind Growing Demand for Premium Homes
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented on the trends: “The demand for high-value homes continues to rise, with registrations for properties priced above Rs. 1 crore surging by 12% YoY. This trend highlights the growing preference for premium living, driven by strong economic fundamentals and evolving lifestyle aspirations.”
Key Takeaways from Knight Frank India Report:
- January 2024 vs January 2025:
- Total registrations: 5,454 vs 5,444 (0% YoY growth)
- Properties priced under Rs. 50 lakhs: 3,387 vs 3,282 (-3% YoY)
- Properties priced between Rs. 50 lakhs to Rs. 1 crore: 1,319 vs 1,359 (+3% YoY)
- Properties priced above Rs. 1 crore: 738 vs 823 (+12% YoY)
- Top districts by registrations: Medchal-Malkajgiri (45%), Rangareddy (41%), Hyderabad district (14%)
- Property size preference: Majority of registrations were for properties in the 1,000 to 2,000 sft range, accounting for 69% of the total.
