Hyderabad: The real estate in Hyderabad and other cities are witnessing a significant surge in demand for luxury homes, as more homebuyers prioritize bigger, high-end properties over affordable housing options.
According to the latest ANAROCK-FICCI Homebuyer Sentiment Survey for H1 2024, demand for premium and luxury homes has soared, with a notable 45 percent of survey respondents preferring homes priced between Rs 90 lakh to Rs 1.5 crore, up from 27 percent in the pre-Covid period.
This shift comes as interest in affordable housing continues to decline, driven by dissatisfaction with project locations, low construction quality, and small unit sizes. The survey found that 53 percent of affordable housing buyers are unhappy with the current options, citing accessibility issues and cramped spaces as major deterrents.
Luxury homes in Hyderabad have become increasingly popular
In contrast, luxury homes in Hyderabad have become increasingly popular among property seekers.
The preference for larger homes, particularly 3BHK units, has grown stronger. Over 50 percent of respondents in Hyderabad, along with cities like Chennai and Bengaluru, now favor 3BHK apartments, showing a clear trend toward spacious living spaces.
| Cities | Preference for 1BHK (in percent) | Preference for 2BHK (in percent) | Preference for 3BHK (in percent) | Preference for 4BHK and above (in percent) |
| Bengaluru | 5 | 38 | 50 | 7 |
| Chennai | 4 | 34 | 55 | 6 |
| Delhi-NCR | 5 | 38 | 52 | 5 |
| Hyderabad | 2 | 39 | 54 | 5 |
| Kolkata | 4 | 46 | 47 | 3 |
| Mumbai-MMR | 19 | 42 | 35 | 4 |
| Pune | 11 | 41 | 46 | 3 |
| Other cities | 2 | 26 | 66 | 6 |
Another factor driving this demand is the increasing focus on rental income potential.
Rental real estate market in Hyderabad
The booming rental markets have seen rates rise significantly, making real estate in Hyderabad and other cities an attractive investment for those seeking steady rental returns.
Approximately 57 percent of residential real estate investors are now focused on rental income, which has become a major motivator in their decision-making process.
Villas, row houses gaining traction
Villas and row houses are gaining traction in Hyderabad’s upscale property market, offering buyers more privacy and space.
Moreover, the demand for residential plots in Hyderabad has also seen a rise. Around 27 percent of property seekers in the city now prefer residential plots.
