ANAROCK: Hyderabad tops Indian cities with 42% price hike in luxury homes segment

HYDERABAD: A new study has revealed that Hyderabad real estate market has boomed expeditiously and emerged as a standout performer post the Covid-19 pandemic. The city witnessed an astounding 42% average price appreciation in the luxury housing segment (costing above Rs 1.5 crore) from 2018 to the first half of 2023.

According to ANAROCK research data, the average price of luxury homes in the top seven cities of India rose from approximately INR 7,450 per sq. ft. in 2018 to INR 10,580 per sq. ft. in 2023.

The luxury housing market in Hyderabad, which had previously experienced price stagnation, underwent a significant transformation with robust sales during the pandemic. This surge in demand and supply dynamics resulted in a remarkable 42% price appreciation over the past five years.

Comparing the top 7 cities, Hyderabad emerged as the clear leader in luxury home price appreciation. In 2018, the average price of luxury homes in the city stood at Rs 7,450 per sq. ft., but this has now soared to Rs 10,580 per sq. ft. as of the first half of 2023.

Anuj Puri, chairman of ANAROCK Group, emphasising the remarkable growth in luxury home prices in the city, stated, "Hyderabad is already a standout performer on other real estate charts, and the appetite for luxury housing here has been more than apparent. The fact that it notched up the highest price appreciation at 23% in the mid and premuim budget category stands to reason.”

According to the study, Hyderabad's real estate market stood out in various other aspects as well. The city's mid-segment housing (Rs 40 lakh - Rs 1.5 crore) had seen significant growth, with prices rising by 16% from Rs 3,460 per sq. ft. in 2018 to Rs 4,000 per sq. ft. in the first half of 2023. Additionally, in the affordable housing category (Less than Rs 40 lakh), Hyderabad experienced a healthy 15% price appreciation, with the average price increasing from Rs 3,750 per sq. ft. in 2018 to Rs 4,310 per sq. ft. in 2023.

This growth in the luxury segment has been part of a broader trend in the Indian real estate market. ANAROCK research data indicated that luxury homes across the top 7 cities have recorded the highest average price appreciation of 24% over the last five years. This is in contrast to affordable homes, which saw a more modest 15% price appreciation during the same period.

Furthermore, Mumbai Metropolitan Region (MMR) and Bengaluru each recorded a 27% rise in the average prices of homes priced above Rs 1.5 crore, closely trailing behind Hyderabad in the luxury housing category.

"The real estate market in Hyderabad had witnessed a remarkable turnaround in recent years, driven by a combination of factors including increased demand, a surge in housing sales, and a buoyant supply pipeline. As a result, the city is becoming a magnet for luxury homebuyers, and its real estate landscape continues to evolve with promising prospects," stated the study.