Hyderabad: Nklusive, India’s foremost real estate consultancy specializing in premium, luxury, and uber luxury residential real estate categories, has released its most recent Hyderabad Market report, highlighting a noticeable downturn in the past year. The market sentiment has been further affected by the imbalance between supply and demand, administrative delays, regulatory obstacles, and rising prices. Demand has been further impacted by purchasers’ and developers’ reluctance due to uncertainties like HYDRAA and FAR limitation. Notwithstanding these obstacles, there is still a strong market for luxury housing, and the approaching year will provide more opportunities. With more transparent regulations, large-scale infrastructure initiatives, foreign direct investment inflows, and budget-friendly micro-markets, positive changes have been apparent.
The report highlights, Hyderabad registered a gross leasing volume (GLV) of 7.6 million sq ft, contributing approximately 14% to India’s overall office leasing. In parallel, the city delivered an unprecedented 13.9 million sq ft of new supply, setting a new benchmark in its real estate development history. The city added 23,679 new high-end residential units in CY24, compared to 37,130 units in CY23.
Key drivers of this growth include strong pre-commitment levels at approximately 30% of the year’s supply and steady rental rates, with prime markets such as Hitec City and Gachibowli experiencing slight upward adjustments. Demand remains heavily concentrated in Grade A assets that meet modern workplace needs including ESG-compliance, tech integration, and premium amenities.
The report also highlights several evolving trends:
● A continued flight-to-quality towards premium, ESG-certified buildings
● Rising adoption of flexible workspaces as companies embrace hybrid models
● The emergence of new micro-markets such as Kondapur, Raidurg Extension, and Kokapet, offering attractive alternatives to traditional hubs
Commenting on the findings, Pawan Kumar Agarwal, Managing Director of Nklusive, said,
“The Hyderabad luxury housing market has experienced a marked deceleration over the past year, driven by a complex interplay of factors. However, despite this temporary slowdown, the underlying demand for premium and luxury residences remains robust. The fundamentals of Hyderabad’s real estate remain strong, and we foresee a market that is more stable, transparent, and opportunity-rich in the near future.”
Looking ahead, Hyderabad’s commercial office as well luxury housing sector is poised for sustained growth, backed by strong occupier interest, upcoming quality supply, and a continued shift towards decentralized and green spaces. As the city establishes itself as a key location for luxury living and commercial investment, Nklusive is dedicated to providing its clients with in-depth market research and custom solutions.