Hyderabad's property prices are on the rise due to factors like increasing housing demand, robust economic growth, and infrastructure development. However, compared to six other major cities, Hyderabad's real estate market remains affordable for buyers.
It is interesting to know that according to the report by Anarock, the average property price in Hyderabad is lower than in other major cities in India such as Delhi-NCR, Kolkata, Mumbai, Pune, Chennai, and Bengaluru. The average property price in Hyderabad of Rs 4,620 per sq ft is undoubtedly a more affordable option for home buyers compared to other cities.
The demand for residential and commercial properties in Hyderabad has been steadily increasing, leading to growth in the real estate market. This can be attributed in part to the State government's infrastructure development and connectivity improvement initiatives. Hyderabad is also a hub for major IT companies, attracting many working professionals and contributing to the city's real estate sector's growth.
Although Hyderabad has experienced a maximum five-yearly increase of 10% in average property prices in the last five years, it is still considered one of the most affordable cities in India to purchase property.
In 2018, the average price per square foot (ft) of property in the city was Rs 4,128. By 2022, this had increased to Rs 4,620 per sqft. Meanwhile, in Bengaluru, the average property price rose to Rs 5,570 per sqft in 2022. Mumbai had the highest average property price at Rs 11,875 per sqft in 2022, followed by Pune at Rs 6,000 per sqft.
According to Prashant Thakur, the Senior Director of Research at Anarock Group, 2022 witnessed the highest annual increase in average property prices. He attributes this surge in fees to the heightened demand for real estate in various cities, coupled with the escalation of input costs for developers, which occurred following the COVID-19 pandemic. This trend of rising prices was particularly noticeable in 2021 and 2022.
End-user demand is anticipated to remain a significant driving force behind rising prices in 2023. Moreover, prices are further propelled by the willingness of branded developers to increase prices due to increased demand and mounting construction expenses. As a result, Hyderabad's real estate market presents highly favorable dynamics for serious long-term investors in the coming year.
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