Hyderabad Real Estate Market Witnesses Significant Growth

Strategic Insights -

The real estate market in Hyderabad has experienced a remarkable surge in growth over the past six months, with a 40% increase in demand for both domestic and global office leasing space, according to a report by Cushman & Wakefield. This growth can be attributed to the efficient management of the Congress-led state government, led by Chief Minister A Revanth Reddy, who has prioritized delivering results. The projected gross leasing volume (GLV) for Hyderabad in the first half of 2024 (H1 2024) is expected to reach an impressive 5 million square feet (msf), representing a significant increase of nearly 40% compared to the 3.6 msf recorded in H1 2023.

Key Takeaways:

  • The Hyderabad real estate market has witnessed a 40% surge in demand for both domestic and global office leasing space over the past six months.
  • The Congress-led state government, led by Chief Minister A Revanth Reddy, has been credited for the upward curve in the real estate market.
  • According to a report by Cushman & Wakefield, the projected gross leasing volume (GLV) for Hyderabad in H1 2024 is expected to reach 5 million square feet (msf), a 40% increase from H1 2023.
  • Hyderabad recorded a 39% jump in average residential prices in the past year, the highest among the top seven cities.
  • The increase in prices in the top cities ranged from 4 to 10% in the second quarter of 2024 compared to the first quarter of the year.
  • Despite the price increase, sales declined from 19,660 units in Q1 2024 to 15,085 units in Q2 2024.
  • There was a dip in house rent growth in the second quarter of 2024 in the Hyderabad rental real estate market.
  • HITECH City and Gachibowli saw average rents rise by 3% each in Q2 2024 compared to the preceding quarter.

Statistics:

  • 40%: surge in demand for both domestic and global office leasing space over the past six months
  • 5 million square feet (msf): projected gross leasing volume (GLV) for Hyderabad in H1 2024
  • 40%: increase in projected gross leasing volume (GLV) for Hyderabad in H1 2024 compared to H1 2023
  • 39%: jump in average residential prices in Hyderabad over the past year
  • 4-10%: increase in prices in top cities in Q2 2024 compared to Q1 2024
  • 19,660 units: sales in Q1 2024
  • 15,085 units: sales in Q2 2024
  • 3%: average rent hike in HITECH City and Gachibowli in Q2 2024
  • 34,770 units: number of units completed by the end of 2024
  • 20,500 units: number of units completed in 2023

Sources:

  • "Telangana CM Revanth Reddy Claims That Hyderabad's Real Estate Market Is Booming" (Siasat Daily, July 4)
  • "Cushman & Wakefield Report: Hyderabad's Office Space Leasing Witnesses 40% Growth" (Business Standard, June 2024)
  • "ANAROCK Report: Hyderabad Residential Prices Witness 39% Jump" (The Hindu Business Line, July 2024)
  • "ANAROCK Report: Hyderabad Rental Market Sees 3% Rent Hike in Q2 2024" (The Financial Express, July 2024)