The Hyderabad property market is showing interesting consolidation, as evident from our detailed study of market data of the January-June period of the current year. In spite of the 2nd wave of Covid, homebuyers’ interest in acquiring properties is very high, especially among the NRI community.
The demand data of the Hyderabad property market has revealed that 3 BHK homes are predominantly preferred (58% of the overall demand) while 2BHK homes are preferred by 33% of the homebuyers.
3 locations, viz. Banjara Hills (14%), Narsangi (36%), and Gachibowli (29%) together command 79% of the housing demand.
Apart from these 3 locations, property demand is evenly distributed among Moti Nagar (8%), Kukatpalli (5%), and other locations (8%).
Hyderabad Homebuyers’ Preferences
If we analyse the demand for homes according to budget, the Hyderabad property market is ruled by a few major segments. Homes priced between Rupees 1.01 to 1.5 cr corner 32% of the market. The 71 to 80 lakh segment has a share of 15% while the 1.2 to 2 cr segment has a market share of 13%. The 2 to 3 cr segment has a market share of 13%.
Interestingly, demand for homes based on size is somewhat evenly distributed among 1000-1200 sq. ft. (11%), 1200-1500 sq. ft. (22%), 1500-2000 sq. ft. (26%), 2000-2500 sq. ft. (9%), 2500-3000 sq. ft. (10%). There is a marked preference for larger homes in the Hyderabad property market at this point in time as is evident from the dominance of 2 segments, namely 1200-1500 sq. ft. and 1500-2000 sq. ft.
Top Contributing Locations in Hyderabad Property Market
Let us now look at the demand in some of the top locations in Hyderabad vis a vis budget ranges.
Banjara Hills home demand is overwhelmingly (83%) for 3BHK homes and only 17% for 2 BHK homes. As far as the budget is concerned, maximum demand (62%) is for homes priced between Rupees 1.51 cr to 2 cr. Here, demand is skewed towards larger homes. The demand for 1501-2000 sq. ft. homes is 33% of the overall demand. The demand for 2001-2500 sq. ft. homes is 28% and the demand for 2501-3000 sq. ft. homes is also 28% of the total demand.
In Narsangi the demand is mostly distributed among budget segments of 61-70 lakh (3%), 71-80 lakh (14%), 81-90 lakh (9%), 91 lakh-1 cr (9%) while the dominant segment is 1.01-1.5 cr (42%). 1200-1500 sq. ft. homes (29%) have the highest demand closely followed by 1501-2000 sq. ft. (26%) homes. The demand for 3BHK is overwhelming here (99.45%).
The demand for homes in different price points is also clear in case of Gachibowli. Rupees 61-70 lakh (4%), 71-80 lakh (24%), 81-90 lakh (6%), 91 lakh-1 cr (5%), 1.01-1.5 cr (31%), 1.5-2 cr (3%), and 2.01-3 cr (19%) are the contributing budget segments here.
Gachibowli has varied demands for homes of different configurations. The demand for 2BHK is 40% while that of 3BHK is 47% and 4 BHK is 13%.
Gachibowli has demand for small size homes such as 700-900 sq. ft. (18%), mid-size homes like 1201-1500 sq. ft. (21%), and even large size homes bigger than 3000 sq. ft. (17%).
Hyderabad Property Market has Depth and Variation
Hyderabad property market has depth and variation of demand for different types of homes. Most locations offer homebuyers varied choices of homes in different budgets, sizes, and configurations (2 BHK, 3 BHK, etc.).
Hyderabad property market is a multi-locational market and demand for homes is not concentrated in one or two locations.
There is also a balanced demand for different sizes of homes in Hyderabad. 700-900 sq. ft. homes to 4000+ sq. ft. homes — all have their share of demand in the Hyderabad property market.
From the above data, it is clear that the growing city of Hyderabad is witnessing a balanced growth with property demand well-spread among different locations. Focused, rapid, and large-scale infrastructural development has ensured overall growth. Growth and development are widespread and not restricted to a few pockets.
As we proceed towards more and more unrestricted economic activities, we can only hope that the demand will further grow in Hyderabad.