Along with Delhi NCR, Bangalore, and Mumbai, Hyderabad is one of the fastest growing metro cities in the country, and the same goes for the Hyderabad real estate market.
Over the last few years, Hyderabad has been experiencing a surge in growth & development, driven by infrastructural advancements and a rapidly expanding IT sector.
Due to these factors, and others such as favourable government initiatives, Hyderabad Real estate market is thriving.
In this article, we’ll go through a comprehensive overview of Hyderabad Real estate market trends, key residential districts and localities, so you, the homebuyer or investor can get valuable insights for your Hyderabad real estate investment
Hyderabad Residential Market in 2024
Hyderabad Housing sector has been showing promising signs with the completion of many modern residential projects and land sales. Aurobindo’s The Regent in Manikonda, and Prestige Vaishnaoi Rainbow Waters in Rai Durg are a couple of the high profile residential projects launched so far in Hyderabad in 2024.
Hyderabad Real Estate Growth in 2024
In Q1 2024, mid-segment housing units made up for 47% of residential supply. Tellapur, in the Western Corridor, contributed the most, amounting to 96% of the mid-range residential supply, with Mamidpally in the South coming second.
The high-end residential segment made up for 34% of supply, mainly from western localities like Narsinghi, Manikonda, & Pappulaguda.
This means that mid-range housing options were the most preferred by buyers and investors during this time, as they’re more affordable and cater to a wider audience.
In Q1 2024, the high-end and luxury market share increased to nearly 50%, reflecting a trend in tier 1 cities where consumers prefer projects with premium amenities.
This is as per Cushman & Wakefield’s Hyderabad Q1 Residential Report.
Based on these real estate trends, the demand for housing in Hyderabad is expected to continue into 2024 and onwards. All signs point towards a healthy and diverse real estate market that’s catering to different segments of buyers, and providing a wide range of choices.
This is great news for investors or home buyers looking for affordable housing, especially in the mid-range or high-end residential property market.
What Are Hyderabadi Key Residential Localities?
Hyderabad Real estate market comprises four main districts: Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
The best localities for real estate investments are Narsingi, Kukatpally Gachibowli Miyapur Nallagandla Tellapur Bachupally.
These top areas have seen notable increases in prices making them appealing options to those looking to buy homes or make investments.
Where To Invest In Hyderabad?
The City of Pearls in Telangana is a large and diverse city, divided into a number of localities. Each locality has its distinct advantages based on their geographical and strategic location, amenities provided, and other things.
Here’s an overview of Hyderabad:
East Hyderabad
East Hyderabad encompasses localities like Uppal, Kukatpally, and Miyapur, known for affordable housing and emerging IT corridors.
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Uppal: An emerging suburb offering budget-friendly properties with potential for value appreciation.
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Kukatpally: Offers affordable housing with well-established infrastructure including healthcare, education, and shopping centers.
South Hyderabad
South Hyderabad includes Banjara Hills, Jubilee Hills, and HITECH City, renowned for upscale living and commercial opportunities.
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Banjara Hills and Jubilee Hills: High-end residential areas with excellent connectivity to the central business district.
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HITEC City: A major tech and business hub hosting numerous IT companies, startups, and multinationals.
West Hyderabad
West Hyderabad features localities such as Gachibowli, Manikonda, and Kondapur, known for their IT and educational hubs.
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Gachibowli: A hotspot for tech companies, educational institutions, and research centers with high demand for residential and commercial properties.
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Manikonda: Offers a mix of budget-friendly and luxury properties, catering to diverse homebuyer needs.
North Hyderabad
North Hyderabad includes Kompally, Nanakramguda, and Puppalaguda, noted for residential and commercial developments.
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Kompally: Rapidly growing with high-quality schools, retail malls, and theatres, offering a comfortable living environment.
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Nanakramguda: Popular for both budget-friendly and luxury properties, providing various options for homebuyers.
Factors To Consider For Real Estate Investors
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High Returns and Capital Appreciation: Areas like Gachibowli, HITEC City, and Nanakramguda due to strong demand for residential and commercial properties.
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Budget-Friendly Options: Localities like Kukatpally, Uppal, and Kompally, offering affordable housing with growth potential.
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Mixed Options: Manikonda and Nanakramguda, providing a range of budget-friendly and luxury properties.
Are There Any Tax Benefits of Investing in Hyderabad Real Estate Market?
There are a number of tax benefits of buying a house in Hyderabad, here are some of them:
Deduction on Home Loan Interest Rates: According to the Income Tax Act’s Section 24(b), if a homeowner or their family lives in the house property, they can claim for deduction of up to INR 2 lakh on their home loan interest.
Deduction on Principal Repayment: The part of your EMI that is used for paying off the principal, you can claim a deduction under Section 80C of Income Tax Act. You are allowed to claim an amount which does not surpass INR 1.5 lakh.
Deduction for First-Time Home Buyers: In India, Section 80EE gives provision for first-time home buyers to claim an extra deduction of INR 50,000 every financial year. This is in addition to the deductions on interest payment of INR 2 lakh and principal repayment of INR 1.5 lakh.
Deduction on Stamp Duty and Registration Charges: You can also claim the stamp duty and registration charges as a deduction according to Section 80C. But, this is only possible in the year when you buy the property.
Bottom Line
The future looks bright for Hyderabad, and Hyderabad Real estate market in particular. An exciting city, marked by growth, potential, and development, and all signs point in the direction of its housing sector booming in the near future.
With so many opportunities, potential real estate investors & homebuyers need to carefully assess and analyse which property they want to buy to navigate this market successfully.
Assetscan is a smart real estate buddy for AI-powered property valuations. It’s a user-friendly platform, assisting investors with accurate micro market updates, and real time property valuations and location trends.
Through Assetscan, buyers can leverage our AI-powered insights to make smarter, data-driven decisions and ensure they capitalize on the best opportunities in this thriving market.
