Hyderabad Sees Significant Rise in Luxury Home Prices
Hyderabad's real estate market is witnessing a significant rise in the prices of luxury homes, aligning with a similar trend in other top cities across India. According to a report by real estate consulting firm Anarock, the average price of homes priced above Rs 1.5 crore has seen a substantial increase.
Between 2022 and 2025, the average price per square foot for luxury homes in the top seven cities rose from Rs 14,530 to Rs 20,300. This trend is particularly pronounced in the National Capital Region (NCR), which recorded the highest demand for luxury homes.
In NCR, the prices of luxury homes appreciated by 72 percent, jumping from Rs 13,450 per square foot in 2022 to Rs 23,100 per square foot in 2025. MMR (Mumbai Metropolitan Region) and Bengaluru followed with 43 percent and 42 percent average price increases, respectively, for homes priced above Rs 1.5 crore over the same period.
In Hyderabad, the prices of luxury homes appreciated by 41 percent. The mid and premium category saw a 49 percent price increase, while the affordable segment saw a 35 percent rise. Despite this significant increase, Hyderabad's current average price for luxury homes is among the lowest in the top seven cities, at Rs 14,200 per square foot in 2025. The mid-segment average price is Rs 8,420 per square foot, and the affordable segment is Rs 5,235 per square foot.
The following table summarizes the average price appreciation across budget categories between 2022 and 2025:
| City | Affordable (<Rs 40 lakh) | Mid & Premium (Rs 40 lakh – Rs 1.5 Cr) | Luxury (> Rs 1.5 Cr) | |-------------|--------------------------|-----------------------------------------|----------------------| | NCR | 48% | 54% | 72% | | Kolkata | 25% | 22% | 20% | | MMR | 17% | 43% | 43% | | Pune | 22% | 21% | 29% | | Hyderabad | 35% | 49% | 41% | | Chennai | 12% | 20% | 25% | | Bangalore | 30% | 62% | 42% | | Pan India | 26% | 39% | 40% |
Source: ANAROCK Research
The rise in luxury home prices in Hyderabad can be attributed to various factors, including increased demand, limited supply, and economic growth. The city's strategic location, robust infrastructure, and burgeoning tech industry have made it an attractive destination for high-net-worth individuals and investors.
Despite the significant price increases, Hyderabad remains a relatively affordable option compared to other major cities. This makes it an attractive market for those looking to invest in luxury real estate without the premium prices seen in cities like Mumbai and Delhi.
The real estate sector in Hyderabad is expected to continue its upward trajectory, driven by ongoing infrastructure projects, a growing population, and a strong economic outlook. For potential buyers and investors, the current market conditions present both opportunities and challenges, requiring careful consideration of market trends and long-term investment strategies.
In conclusion, while the prices of luxury homes in Hyderabad have seen a substantial increase, the city remains a competitive and attractive market for real estate investments. The ongoing growth and development in the region are likely to sustain this trend, making it an exciting time for the real estate sector in Hyderabad.
