Hyderabad set for residential boom with over 130,000 units expected in next 3 years

Hyderabad: Hyderabad is gearing up for significant growth in the residential sector, as revealed by a full report by CBRE South Asia Pvt. Ltd. Limited. Limited. The report titled “From Now to Next: Tracking Hyderabad’s Real Estate Dynamics” estimates the launch of over 130,000 residential units within the city over the next two to three years. The city’s expansion in the tech sector and industrialization has become a catalyst for the spread of residential development, especially in proximity to micro-markets and major offices such as the IT Corridor and Extended IT Corridor in the western part of Hyderabad. According to the report, this growth is mainly due to the increasing demand for employees from multinational companies, further enhanced by the development of first-class infrastructure, resulting in a better quality of life in general in these areas. The report further said that West Hyderabad continues to be the preferred residential hub, catering to the mid-segment, alto and premium categories. On the other hand, it is expected that the micro markets in North, East and South of Hyderabad will attract buyers of mid segment homes. Central Hyderabad is expected to sustain demand mainly in the premium and high-end segments. Buyers’ preferences are inclined towards projects that are found within two budget ranges (Rs 45 lakh – Rs 1 crore and Rs 1 – 1.5 crore). However, the report said that the real estate scenario may see an increase in the budget due to increase in land cost and development as well as larger size of units. While developers are gearing up to launch new projects in key micromarkets, there could be a potential impact on delivery times and execution capabilities, leading to an increase in unsold inventory. Anshuman Magazine, Chairman and Executive Director – India, South East Asia, Middle East and Africa, CBRE, commented: “Hyderabad’s transformational journey positions it as a premier investment destination. The report also suggests an organic framework of long-term demand driven by ongoing industrialization and government-led development initiatives from West Hyderabad to other areas of the city. Apart from residential development, the report also forecasts an increase in investment grade business parks in Hyderabad’s office sector, with an increase of 35 to 38 million square feet projected for 2023-2025.