Hyderabad: Hyderabad’s real estate market in 2025 is navigating a phase of measured recalibration even as its long-term growth story remains firmly intact. Strong economic fundamentals, led by the IT sector and the rapid expansion of global capability centres (GCCs), continue to underpin demand across asset classes. However, the market has seen a visible slowdown in land transactions and residential sales over the past six months. “The fundamentals are very strong, but the market has witnessed a slowdown in the land and residential segments in the last six months,” said K Sreedhar Reddy, Secretary General, National Real Estate Development Council (Naredco), Telangana, in an exclusive interaction with The Hans India. In contrast, he pointed out that demand for commercial office spaces and high-street retail properties has risen sharply, reflecting changing business and consumer dynamics.

Hyderabad’s enduring appeal for real estate investors lies in a unique combination of economic strength, infrastructure readiness and quality of life. “Robust infrastructure, availability of skilled manpower, affordable cost of living and world-renowned organisations already operating here continue to make Hyderabad an attractive destination,” Reddy said.

Large infrastructure projects such as the Outer Ring Road (ORR), Hyderabad Metro Rail and the steady expansion of IT corridors have played a transformative role, improving connectivity and unlocking new development zones across the city. “Infrastructure development is the main reason why Hyderabad has seen unprecedented growth in recent years. It has transformed land into valuable locations,” he added.

Residential and commercial real estate remain the most active segments in the city, with premium luxury housing and commercial night-street retail formats seeing maximum traction. The retail sector is evolving rapidly, with developers increasingly focusing on experiential formats. “Retail is no longer just about shopping. Developers are now creating multi-functional ‘retail-tainment’ spaces that combine shopping, dining and entertainment,” Reddy said. New malls and high-street retail projects are emerging in prime areas such as Banjara Hills, Jubilee Hills and the Financial District, catering to higher consumer footfalls and longer engagement.

Geographically, West Hyderabad continues to dominate demand, driven by the IT boom and the presence of large office campuses. Micro-markets such as Gachibowli, Kondapur, Tellapur, Kokapet and the Financial District have seen a strong shift towards luxury housing priced above Rs 1 crore, along with integrated townships and lifestyle-focused developments. “West Hyderabad remains very strong, but the market is now expanding outward,” Reddy observed. The southern corridor of the city is emerging as the next growth zone, offering relatively better affordability while steadily upgrading its infrastructure, and increasingly competing with the western belt for buyer attention.

Buyer preferences in Hyderabad have also evolved significantly. Gated communities, offering security, amenities and lifestyle features, dominate demand and include both high-rise apartments and villa projects. “Apartments continue to be the most sought-after option, especially for first-time buyers and professionals, but we are seeing a rising demand for plots and luxury villas among affluent and long-term investors,” Reddy said.

The IT sector and GCC expansion remain the single largest drivers of Hyderabad’s real estate momentum. “The Hyderabad property market is predominantly driven by IT, and the growth of GCCs plays a major role in real estate development,” he said. This expansion has boosted demand for commercial offices, driven residential absorption in surrounding corridors and supported higher rental yields, particularly in areas such as Gachibowli, Kokapet and the Financial District.

Affordability, however, is becoming a growing concern for first-time homebuyers. “While Hyderabad was once very affordable compared to other metros, rising prices in IT hubs are making it increasingly challenging,” Reddy noted, adding that many middle-income buyers are being pushed towards the city’s outskirts or are settling for smaller homes.

Looking ahead, Reddy remains cautiously optimistic. “In the short term, the market will remain slow and steady for the next two to three years, but the long-term outlook is highly positive,” he said. Policy support and large-scale infrastructure projects, particularly the proposed Regional Ring Road, are expected to unlock new growth corridors and sustain Hyderabad’s transition into one of India’s leading real estate markets.