Despite a consistent increase in property prices, attributed to factors such as growing demand for housing, strong economic growth, and infrastructure development, Hyderabad remains an affordable city for property buyers in comparison to six other major metros in India.
A recent report by property consultant Anarock compared the average property prices in Delhi-NCR, Kolkata, Mumbai, Pune, Hyderabad, Chennai, and Bengaluru. The report found that the average property price in Hyderabad is Rs 4,620 per sq ft, significantly lower than the average property prices in other cities.
Hyderabad’s real estate market has experienced steady growth, with an increase in demand for residential and commercial properties. The state government’s efforts to develop infrastructure and improve connectivity have played a significant role in boosting the real estate sector. Additionally, the city is home to several major IT companies, attracting a large number of working professionals.
Although average property prices in Hyderabad have risen by 10% in the last five years, it remains one of the most affordable cities in India to buy property. In 2018, the average property price was Rs 4,128 per sq ft, which increased to Rs 4,620 per sq ft in 2022. By comparison, the average property prices in Bengaluru increased to Rs 5,570 per sq ft in 2022, with Mumbai topping the list at Rs 11,875 per sq ft in 2022, followed by Pune at Rs 6,000 per sq ft.
Prashant Thakur, senior director of Research at Anarock Group, states that the maximum yearly rise in average property prices occurred in 2022, driven by post-pandemic demand across cities and rising construction costs. Branded developers, who have not shied away from price hikes on the back of strong demand, have contributed to the upward trend in property prices.
In 2023, end-user demand is expected to continue driving the market dynamics, making it more than favourable for serious long-term investors.