However, budgets are expected to escalate due to rising land and development costs coupled with larger unit sizes.
HYDERABAD: Hyderabad is gearing up for the launch of over 1,30,000 residential units in the next two to three years, according to a report by CBRE South Asia Pvt Ltd titled ‘From Now to Next: Tracing Hyderabad’s Real Estate Dynamics.’
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The report highlights the concentration of residential development in the western part of the city, specifically around the key office micro-markets of the IT corridor and extended IT corridor. This surge is attributed to the increasing demand from employees of multinational companies and the development of high-quality infrastructure, enhancing the overall quality of living in these areas.
West Hyderabad preferred residential hub
West Hyderabad is emerging as the preferred residential hub, catering to mid-segment, high-end, and premium categories while mid-segment home buyers are also evincing interest in North, East and Southern parts of the city. Meanwhile, central Hyderabad has sustained demand in high-end and premium segments.
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First-time buyers and end-users find projects worth Rs 45 lakh-Rs 1 crore and Rs 1-Rs 1.5 crore most appealing, the report said. However, budgets are expected to escalate due to rising land and development costs coupled with larger unit sizes. Developers are projected to continue launching new projects, but an increase in supply may impact delivery timelines and execution capabilities, leading to a rise in unsold inventory.
Homebuyers now prioritise affordability and emphasise building quality, aesthetics, and surroundings post-pandemic, prompting developers to incorporate new-age amenities, sustainable features, attractive designs, and well-planned outdoors in future projects. The Hyderabad office sector is expected to witness a significant boost with the addition of approximately 35 – 38 mn. sq. ft. of high-quality business parks in the next two to three years.
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The surge is fueled by a robust business environment, attracting global corporations to establish outsourcing centres, back offices, research and development facilities, and regional headquarters. Key sectors driving absorption include Life sciences, BFSI, and technology. Anshuman Magazine, chairman of South-East Asia, Middle East, and Africa at CBRE, stressed the importance of proactive planning for developers and investors amid rising land costs and growing demand for larger unit sizes.
