Hyderabad's premium housing market, defined by properties priced at ₹1.5 crore and above, witnessed a significant 17% year-on-year increase in sales during the first half of 2025, according to a report by JLL. The Western suburbs, known for their proximity to HITEC City and established residential areas, dominated the premium segment.
Real Estate News:Hyderabad’s premium housing segment, defined as properties priced at ₹1.5 crore and above, recorded a 17% year-on-year increase in sales during the first half of 2025, according to a report by JLL. A total of 8,205 premium units were sold in H1 2025, marking a notable rise even as the city’s overall residential sales across all price segments declined by approximately 6% during the same period.
The premium segment now constitutes nearly half of the city’s residential transactions, accounting for 49% of total sales in H1 2025, compared to 40% in the first half of 2024. The strongest growth was observed in the ₹1.5–3 crore range, which saw demand increase by 28% year-on-year. Analysts attribute this surge to limited inventory, growing purchasing power among technology professionals, and a preference for larger, well-appointed homes with contemporary amenities.
According to Samantak Das, Chief Economist and Head of Research and REIS, India, JLL, premium housing has emerged as a key driver in Hyderabad’s real estate market. Affluent buyers increasingly regard these properties not just as residences but as secure investment options amid prevailing market uncertainties.
The Western suburbs, including Kokapet, Puppalguda, Narsingi, and Kondapur, accounted for approximately 85% of premium property transactions during this period. The area’s proximity to HITEC City, the Financial District, and established residential neighbourhoods, along with access to quality infrastructure, schools, and lifestyle amenities, continues to drive strong demand among high-net-worth buyers.
Sandip Patnaik, Senior Managing Director, Hyderabad, JLL, noted that the Western suburbs dominate the premium housing landscape due to their status as the city’s primary technology and commercial hubs. The availability of quality infrastructure, premium lifestyle offerings, and established high-income communities collectively support robust demand for high-end residences.
However, JLL also highlighted the potential of Hyderabad’s Northern suburbs, including Kompally, Bachupally, Miyapur, and Kollur, to emerge as strong contenders in the premium housing market over the coming years. Infrastructure upgrades, planned social amenities, and the growing appeal of spacious gated communities are expected to attract buyers seeking larger homes and quieter neighbourhoods.
The shift towards premium housing is being driven by both domestic and expatriate technology professionals, along with investors looking for properties that offer long-term value. With limited high-end inventory in established zones, buyers are increasingly exploring peripheral areas where new developments offer more space, modern facilities, and well-planned layouts.
Industry experts also note that the sustained demand for premium housing has wider implications for Hyderabad’s residential real estate market. Developers are prioritising high-quality construction, design-forward layouts, and integrated amenities to meet the expectations of affluent buyers. This focus has helped certain micro-markets maintain property values despite overall sales declines in other segments.
Hyderabad’s strong IT presence, supportive government policies, and ongoing infrastructure development have collectively contributed to the resilience of the premium housing sector. Job growth in technology, finance, and healthcare sectors continues to attract both investors and end-users, making the high-end segment increasingly significant in the city’s real estate ecosystem.
The report underscores that while the broader housing market may face short-term pressures, premium properties in Hyderabad are demonstrating strong performance. Established areas like Kokapet, Puppalguda, Narsingi, and Kondapur are expected to maintain high demand, while emerging suburbs offer growth potential for developers and investors alike.
With nearly half of residential sales now coming from the premium segment, Hyderabad’s real estate market is witnessing a clear shift in buyer preferences, highlighting the city’s evolving residential landscape and the rising prominence of high-end housing.
Frequently Asked Questions
What is considered a premium property in Hyderabad?
In Hyderabad, premium properties are defined as those priced at ₹1.5 crore and above. These properties often include larger, well-appointed homes with contemporary amenities.
Which suburbs in Hyderabad are leading in premium property sales?
The Western suburbs, including Kokapet, Puppalguda, Narsingi, and Kondapur, are leading in premium property sales. These areas are known for their proximity to HITEC City and established residential neighborhoods.
What factors are driving the growth in premium property sales?
The growth in premium property sales is driven by limited inventory, growing purchasing power among technology professionals, and a preference for larger, well-appointed homes with modern amenities.
How is the premium housing market impacting the overall real estate market in Hyderabad?
The premium housing market is impacting the overall real estate market by driving developers to focus on high-quality construction, design-forward layouts, and integrated amenities, which helps maintain property values despite overall sales declines in other segments.
What potential do Northern suburbs have in the premium housing market?
The Northern suburbs, including Kompally, Bachupally, Miyapur, and Kollur, have potential to emerge as strong contenders in the premium housing market due to infrastructure upgrades, planned social amenities, and the appeal of spacious gated communities.