Hyderabad Real Estate Slows in Last 6 Months, but Core Fundamentals Remain Strong: Sreedhar Reddy

Hyderabad’s real estate market has hit a slower pace over the past six months, but industry experts say the city’s strong economic base continues to support long-term growth. According to K. Sreedhar Reddy, Secretary General of NAREDCO Telangana, the slowdown is largely limited to land transactions and residential sales, while commercial and high-street retail segments are witnessing robust demand.

“The fundamentals remain very strong, but the land and residential segments have clearly slowed down in the last six months,” Reddy told The Hans India in an exclusive interaction. At the same time, the commercial office market and premium retail properties have gained significant momentum, reflecting shifting business needs and consumer behaviour.

Hyderabad Still a Top Real Estate Destination

Hyderabad’s appeal for investors continues to be driven by a powerful mix of economic strength, infrastructure readiness, skilled workforce and quality of life.

“World-class infrastructure, affordable living and the presence of major global organisations keep Hyderabad attractive for both investors and occupiers,” Reddy said.

Massive infrastructure projects such as the Outer Ring Road (ORR), Hyderabad Metro Rail, and the expansion of IT corridors have been key enablers in shaping new development zones. “Infrastructure development has transformed vast stretches of land into high-value locations,” he added.

Retail Boom and Premium Housing Surge

Hyderabad’s residential and commercial sectors remain the city’s most active, with luxury housing and high-street retail emerging as the hottest categories.

The retail landscape, Reddy noted, is evolving into ‘retail-tainment’ spaces, blending shopping, dining and entertainment under a single roof. Prime areas such as Banjara Hills, Jubilee Hills, and the Financial District are now witnessing a surge in new mall and retail developments, catering to higher footfalls.

West Hyderabad Dominates, South Expands

West Hyderabad continues to lead demand—fuelled by IT growth and corporate campuses—in areas like Gachibowli, Kondapur, Kokapet, Tellapur and the Financial District. Luxury homes priced above ₹1 crore, integrated townships and lifestyle-centric projects dominate these micro-markets.

“The western corridor is extremely strong, but the market is now moving outward,” Reddy said. The southern belt is emerging as the next growth hub, offering better affordability and improved infrastructure, slowly becoming a serious alternative for buyers.

Shifting Buyer Preferences

Gated communities remain the top choice for most buyers, including first-time homebuyers, professionals and affluent investors. While apartments continue to dominate demand, interest in luxury villas and residential plots is rising among wealthier segments.

However, affordability is becoming a challenge. “Hyderabad was once very affordable compared to other metros. But rising prices in IT-centric areas are pushing many middle-income buyers towards the outskirts or into smaller units,” Reddy explained.

IT and GCC Growth Powering Momentum

IT industry and the consequent rise in Global Capability Centres (GCCs) are considered to be significant factors to spur real estate demand in Hyderabad. They have been driving office space leasing, augmenting residential sales and price rentals especially toward the western corridor.

Short term reversal; high growth in the long term

Reddy predicted that the market would remain slow but still strong for the next two or three years. However, the long-term future remains interesting. This would consist of implementation of the upcoming infrastructure projects and particularly the proposed Regional Ring Road (RRR), opening up new growth corridors, thus enhancing Hyderabad's position as an upcoming real estate market in India.