West Hyderabad Leads Luxury Housing Boom, Supply Drops Citywide

Hyderabad’s premium residential real estate segment recorded strong price appreciation in Calendar Year 2024 (CY24) despite a slowdown in new project launches and supply, according to a report by real estate advisory firm Inklusive.

The report highlights that the Weighted Average Saleable Price (WASP) in the high-end market rose by 36.4 per cent year-on-year, climbing from Rs 5,350 to Rs 7,300 per square foot. The premium segment (Rs 1.5 crore and above) also posted a 9.4 per cent price rise, reaching Rs 5,799 per square foot. In contrast, the luxury category (Rs 5–10 crore) registered a marginal decline of 2.1 per cent, while the ultra-luxury segment (Rs 10 crore and above) jumped by 26.8 per cent.

The total marketable supply in the city dropped across categories. The high-end category introduced 23,679 units in CY24, a 36.24% drop compared to the 37,130 units in CY23. Premium inventory also shrank by 35.57 per cent, and the luxury segment saw a 45.29 per cent contraction. In the ultra-luxury segment, new launches declined 13.6 per cent year-on-year.

West and Northwest Hyderabad dominated the market, contributing over 70 per cent of total supply in premium, luxury, and ultra-luxury categories. South West followed distantly across segments. Key zones like Gachibowli, HITEC City, and Kokapet remained prime micro-markets.

Absorption rates reflected the ongoing correction phase. The high-end segment saw 8,019 units sold in CY24 — a 35 per cent drop from the previous year. The premium segment sold 7,133 units in CY24 compared to 22,311 in CY23. Luxury sales declined to 687 units from 2,752 a year earlier. Ultra-luxury saw sales dip to 199 from 522 units.

Larger configurations such as 3.5 BHK to 5 BHK remained dominant across higher price brackets. Supply in 1–2.5 BHK homes above Rs 1.5 crore remained marginal, with only 112 units added and 41 units sold in CY24.

- High-end: 36.4 per cent YoY increase (Rs 7,300 PSF)

- Premium: 9.4 per cent YoY increase (Rs 5,799 PSF)

- Luxury: 2.1 per cent YoY decline (Rs 9,041 PSF)

- Ultra-luxury: 26.8 per cent YoY increase (Rs 19,085 PSF)

Despite price hikes, the city’s residential real estate market experienced a dip in overall absorption. The report attributes the decline to an oversupply in key corridors, increasing prices due to external economic pressures, and regulatory bottlenecks including FAR restrictions and HYDRAA concerns. The slowdown in IT sector hiring further impacted buyer sentiment.

However, commercial leasing activity showed strong recovery, which could translate into residential demand growth in the upcoming quarters. Key positives include rising foreign direct investments (FDI), improved clarity in policy implementation, and large-scale infrastructure projects in progress.

As per Inklusive, these developments are expected to balance the market dynamics and support a recovery trend in Hyderabad’s residential real estate market by 2025.