Premium Homes Dominate Supply, Shifting Demand to Resale
Hyderabad’s housing market has witnessed a significant surge, with average home prices rising 81% between 2019 and 2025 to ₹8,326 per sq ft, making it the second-fastest growing market after Gurugram. This growth is attributed to a structural shift in supply, with developers focusing on premium and luxury housing due to higher margins and rising land costs according to nobroker.in.
Shrinking Home Sizes, rising prices
Despite the price surge, home sizes have shrunk by about 4% from 1,068 sq ft to 1,025 sq ft, reflecting a ‘shrinkflation’ trend.
The premiumisation trend is driven by developers seeking higher margins, resulting in a mismatch between supply and demand. “Demand remains strongest in the entry-level segment even as new supply is migrating up the price curve,” says the report.
Resale Market Gains Traction
With new launches becoming increasingly expensive, buyers are turning to the resale market, which offers relatively affordable options and a broader price mix. Areas like Kukatpally, Miyapur, and Kokapet have emerged as demand hotspots, driven by infrastructure upgrades and metro connectivity.
Emerging Corridors
The western corridor, anchored by the Financial District, accounts for about 25% of new supply, reinforcing its position as the city’s premium housing hub. South Hyderabad, led by the airport corridor, has emerged as the largest contributor, accounting for 33% of total launches.
