The residential real estate market in Hyderabad witnessed a marginal decline in 2025, with total home sales dropping by 2% to 75,222 units. The figures released by Knight Frank reveal a significant shift in buyer preferences, with the affordable housing segment experiencing a sharp downturn while luxury properties registered substantial growth.
The most striking trend in the city’s property market has been the dramatic decline in affordable housing sales. Homes priced below ₹50 lakh saw registrations crash by 9%, indicating reduced demand in the entry-level and budget housing segments. This slump suggests that first-time homebuyers and middle-income groups faced challenges in the property market during the year.
In stark contrast, the luxury housing segment witnessed remarkable growth. Registration of homes priced above ₹1 crore jumped by an impressive 35%, highlighting strong demand from high-net-worth individuals and affluent buyers. This surge in premium property transactions has fundamentally altered the composition of Hyderabad’s real estate market.
The concentration of wealth in the property market has become increasingly pronounced. The top 20% of expensive homes now control 50% of the total market value in Hyderabad. This indicates a growing polarization in the real estate sector, with high-value properties dominating the overall market valuation despite representing a smaller proportion of total transactions.
Several upscale localities emerged as hotspots for luxury home registrations. Areas such as Kokapet, Kondapur, Puppalaguda, Nanakramguda, Narsingi, and Gaganpahad witnessed significant registrations of homes priced at ₹1 crore and above. These western and southern corridor locations have established themselves as preferred destinations for premium residential developments.
The shift in market dynamics reflects changing buyer demographics and investment patterns in Hyderabad’s real estate sector. While affordable housing struggles, the luxury segment continues to attract substantial investment, driven by the city’s growing population of high-income professionals and entrepreneurs in the technology and business sectors.
The data compiled by Knight Frank provides insights into the evolving nature of Hyderabad’s property market, where premium properties are increasingly driving overall market value despite a slight decline in total transaction volumes. The contrasting performance of different price segments underscores the bifurcated nature of demand in the city’s residential real estate landscape.
