Hyderabad leads luxury home space in India

Telangana govt’s aggressive policy initiatives and infrastructure developments in Hyderabad have led to new growth clusters in the city. The housing demand has increased across all categories from affordable to luxury. Due to change in preferences, premium segment surged up -- Sunil Chandra Reddy, President, NAREDCO Telangana

Hyderabad witnessed the highest number of new luxury housing units among the top seven cities in India during July-September quarter (Q3) 2023, says a report. As many as 14,340 luxury units were launched in the city in Q3 2023, comprising a nearly 46 per cent share of the total new luxury supply in the quarter. Back in Q3 2018, the city had launched only 210 units in this category.

Speaking about the luxury housing boom in the city, B Sunil Chandra Reddy, President of Naredco Telangana, said: “Telangana government’s aggressive policy initiatives and infrastructure developments in Hyderabad have led to new growth clusters in the city. The housing demand has increased across all categories from affordable to luxury. Due to change in preferences, premium segment surged up.”

“The conducive government policies have attracted investments in all major sectors of the State. A new investment is announced in every 10 days. Particularly in IT & ITeS sector, Hyderabad has overtaken Bengaluru in terms of jobs as well as turnover during this year. Very soon, this city will be called as ‘Silicon Valley of India’. I am sure more people will come in and bring extra demand for luxury housing in the city,” he added.

According to the latest report of real estate consultancy Anarock, out of 1,16,220 units launched in Q3 2023 in the major cities across various budget categories, approximately 27 per cent (31,180 units) were in the luxury category. This is the highest quarterly luxury supply entering the market in the last five years.

The unwavering demand for premium housing since the pandemic has kicked off a spate of new launches in this category. Back in Q3 2018, the supply share of luxury housing was just 9 per cent (4,590 units) of 52,120 units launched across budget segments. In Q3 2023, Hyderabad has churned out the highest new luxury supply followed by Mumbai Metropolitan Region (MMR) with 7,830 units.

Prashant Thakur, Regional Director & Head – Research, Anarock Group, says, “Developers have been bullish about the luxury homes segment because of its superlative performance after the pandemic, with overall sales rising steeply across the top seven cities. Post pandemic, homebuyers have been seeking bigger homes and apart from high-end amenities and good location.”

He said, “The luxury housing is primarily defined by generous floor space. Anarock’s most recent consumer sentiment survey also reflects this trend. In the pre-Covid edition of the survey (H1 2019), about 9 per cent respondents preferred luxury homes priced above Rs 1.5 crore while in the current edition of H1 2023, this share has risen to 16 per cent.”