Hyderabad’s real estate market is undergoing a dramatic transformation in 2025, with soaring prices and luxury developments increasingly squeezing out affordable housing options for average buyers.
Property prices in the city have surged by around 85% over the past five years, pushing the typical home cost past â¹1 crore; a level that places ownership out of reach for nearly 70% of local residents.
Industry experts say a major factor driving this shift is the rush toward high-rise luxury projects, particularly in prime western corridors of the city.
Developers are launching towering residential complexes; often 3,500 to 7,000 sq. ft homes in 60-plus floor buildings; even in areas without strong demand for such high-end inventory. This trend has not only raised prices broadly across Hyderabad but also reduced the share of smaller, more affordable units on offer.
The explosion in land costs; doubling in key pockets over recent years; has further fuelled this imbalance. Analysts note that major land deals along the western corridor are driving speculative pricing even in peripheral zones lacking similar infrastructure or demand, making affordable home-ownership an increasingly distant dream for middle-class buyers.
As a result, middle-income homebuyers are being pushed to far-flung suburbs such as Tukkuguda, where properties below â¹1 crore are still found, but at the cost of longer commute times and weaker connectivity.
Some buyers are also turning to unorganised builders, raising concerns about quality, legality, and the lack of regulatory safeguards in those segments.
Despite government promises of inclusive housing policies unveiled at the Telangana Rising 2047 summit, the luxury boom shows little sign of abating.
The city’s unlimited Floor Space Index (FSI) policy; intended to boost housing supply; has instead encouraged over-construction of high-end units, piling pressure on infrastructure while doing little to improve affordability.
However, some developers remain optimistic about 2026, pointing to relatively stable price points in eastern localities like Yapral and Kompally where mid-range buyers are still active, albeit at distances far from central employment hubs.
Experts suggest that concerted reforms; including zoning for affordable housing, decentralising office centres, and improving transport networks; will be crucial to restoring a more balanced real estate ecosystem in Hyderabad.
While luxury housing continues to grab headlines and premium sales, the decline in affordable options highlights a deepening divide in Hyderabad’s housing market.
With the city now rivalled only by NCR and Mumbai in average property values, home-ownership for the middle class is rapidly becoming a dream rather than a realistic goal.