‘Hyderabad emerging as India’s major realty hub driven by IT, solid infrastructure and strong value appreciation’

K Sreedhar Reddy is the Secretary General of the National Real Estate Development Council (NAREDCO), Telangana, and a veteran real estate professional with over three decades of industry experience. He began his journey in construction in 1991 and has since been actively involved across multiple segments, including commercial developments, residential apartments, villas, and layout development.

A committed industry representative, Sreedhar Reddy has been closely associated with NAREDCO for the past 17 years, contributing to policy dialogue, sectoral reforms, and the organised growth of the real estate ecosystem in Telangana. He is the promoter of Megasri Constructions Ltd and Apurupa Infrastructures Pvt Ltd, companies known for their diversified real estate portfolio and sustained presence in the region. In an interaction with Bizz Buzz, Sreedhar Reddy revealed the current trends in the realty sector in the Hyderabad region and also across the state. Excerpts…

How would you describe the current mood of Hyderabad’s real estate market in 2025?

The market is driven by strong economic fundamentals, particularly the booming IT and allied sectors, and significant infrastructure development, but currently, over the past six months, the market has witnessed a slowdown in the land, residential segment. There has, however, been a huge surge in demand for high street retail and commercial office space properties.

What are the key factors that continue to make Hyderabad attractive for real estate investors?

Hyderabad's real estate market remains highly attractive for investors due to a combination of strong economic fundamentals, rapid infrastructure development, and a high quality of life.

Robust infrastructure, availability of skilled manpower, affordable cost of living, and world-renowned organisations already having their presence are the main factors that make Hyderabad an attractive destination for investors.

Which segments—residential, commercial, or retail—are seeing the most traction right now?

In Hyderabad, the residential and commercial real estate segments are seeing the most traction right now, with a particular boom in premium luxury housing & commercial night street retail segments, which are having maximum traction now.

The retail sector is also expanding, focusing on experiential shopping centres and high-street outlets. Developers are focusing on ‘retail-tainment’ by creating multi-functional spaces that combine shopping, dining, and entertainment facilities to attract consumers. New malls and high-street retail outlets are emerging in key locations like Banjara Hills, Jubilee Hills, and the Financial District.

How has demand evolved across different parts of Hyderabad over the last year?

Over the past year, Hyderabad's real estate demand has surged, especially in the West Hyderabad corridor (Kondapur, Gachibowli, Tellapur), driven by the IT boom, leading to a strong shift towards luxury properties (Rs1 crore+), integrated townships and demand for lifestyle amenities.

The southern corridor is now the new growth sector, competing with the western corridor. In essence, while established Hyderabad West areas remain strong, the market is expanding outwards, with affordability and lifestyle driving demand in developing corridors.

Are homebuyers in Hyderabad more inclined towards apartments, gated communities, or plotted developments today?

Homebuyers in Hyderabad are largely inclined toward gated communities, which can include both high-rise apartments and villa developments, due to the emphasis on security, amenities, and lifestyle.

While apartments are the most sought-after property type overall, particularly among first-time buyers and working professionals, there is a strong and rising demand for plots and luxury villas among affluent and long-term investors.

What role has infrastructure development played in shaping real estate growth in the city?

Infrastructure development is the main reason why the city has seen unprecedented growth in the past few years. Infrastructure development, especially major projects like the Outer Ring Road (ORR), Hyderabad Metro, and IT corridors, has been pivotal in Hyderabad's real estate boom by drastically improving connectivity, transforming remote areas into desirable locations, fueling economic growth, boosting property values, and creating demand for diverse housing, from luxury homes to affordable options, making previously underdeveloped areas prime investment spots.

Infrastructure development in the city has transformed ‘land’ into valuable ‘locations’, making Hyderabad a more connected, economically vibrant, and desirable city for homebuyers and investors, continually reshaping its real estate landscape.

How do you see the impact of IT and global capability centres (GCCs) on Hyderabad’s property market?

The Hyderabad property market is predominantly driven by the IT sector, and hence the growth of the GCC & IT sector plays a major role in the real estate development. IT and GCC growth in Hyderabad drives massive demand for both commercial (office) and residential real estate, boosting property values, rental yields, and infrastructure development, transforming areas like Gachibowli, Financial District, and Kokapet into high-growth corridors for premium homes, flexible workspaces, and holistic living experiences, leading to a booming, globally-connected market.

IT and GCC growth are the primary drivers behind Hyderabad's current real estate boom, creating a cycle of economic growth, infrastructure improvement, and elevated living standards.

Has affordability improved or become a challenge for first-time homebuyers in recent times?

Affordability in Hyderabad for first-time homebuyers is a mixed bag: while the city was once considered very affordable due to relatively lower prices to other metros, rising property values, especially in IT hubs, are making it increasingly challenging, pushing buyers towards the city's outskirts for cheaper options, even as demand for budget homes remains high.

This has led many middle-income buyers to compromise on location or settle for smaller homes. Affordability is declining for first-time buyers in desirable areas due to high demand and a focus on luxury, pushing budget-conscious buyers to the fringes of the city.

What trends are you observing in mid-income and premium housing segments?

The mid-income segment has been and continues to be the workhorse of the market. Overall, this segment has seen steady and consistent growth on a YoY basis.

The premium market is experiencing strong growth, with sales and prices rising significantly, driven by a desire for an enhanced lifestyle and exclusivity.

How is Hyderabad positioned compared to other major Indian cities in terms of real estate growth?

Hyderabad is positioned as India's leading real estate growth market, outpacing established hubs due to robust economic growth, especially in IT, significant infrastructure investment, and relatively affordable, appreciating property values, making it a prime destination for investors and homebuyers seeking strong returns and quality of life.

Availability of land, good infrastructure, and a stable, proactive government are the main advantages of Hyderabad over other markets.

Hyderabad is transitioning from an ‘up-and-coming’ city to a leading real estate capital, offering a compelling blend of strong economic fundamentals, infrastructural development, and attractive property investment opportunities.

What changes do you see in buyer preferences post-pandemic, especially regarding amenities and lifestyle features?

Post-pandemic, buyer preferences have significantly shifted, with increased demand for spacious, multi-functional homes that prioritise wellness, safety, and technology.

The home is no longer just a living space but a flexible sanctuary for work, health, and family life. Therefore, gated communities and villa developments with greater home buyer emphasis on outdoor and green spaces have benefited substantially post pandemic.

How important is sustainability and green construction in today’s Hyderabad real estate projects?

It is not a major deciding factor for a buyer.

What role does Naredco play in supporting developers and ensuring healthy market practices?

The National Real Estate Development Council (Naredco) is the leading apex body for the Indian real estate industry, established under the aegis of the Ministry of Housing and Urban Affairs, Government of India.

Its primary role is to serve as a bridge between the industry and the government, fostering a transparent, ethical, and competitive real estate sector.

Are there any policy initiatives or government measures that have positively impacted the sector recently?

Policies create a secure, transparent, and growth-oriented environment, making Hyderabad a preferred destination for real estate investment and development. RRR (Regional Ring Road) is a major game-changer for the estate.

Looking ahead, what is your outlook for Hyderabad’s real estate market over the next few years?

The Hyderabad real estate market’s long-term outlook is highly positive. In the short term, the real estate market will be slow and sturdy for the next 2-3 years, post which there shall be growth.

In essence, Hyderabad's real estate market is poised for further expansion, presenting attractive opportunities for diverse buyer profiles looking for both lifestyle upgrades and solid investment potential.