Indian Real Estate Market Heats Up: Hyderabad Claims 5% Share

Hyderabad’s real estate market has experienced a remarkable surge, capturing 5% of the total land deals in India from January to September 2024. This significant increase underscores the city’s growing economic prominence and its appeal as a prime investment destination. A recent report by CBRE South Asia Pvt. Ltd. revealed a 65% year-on-year increase in land deal volumes across the country.

Hyderabad, alongside Delhi-NCR, Mumbai, Chennai, Bengaluru, and Pune, emerged as key players in this thriving market. Residential properties accounted for the lion’s share of Hyderabad’s land deals, constituting 61% of the total volume. This reflects the increasing demand for housing in the city, driven by factors such as population growth, urbanization, and improved infrastructure. Beyond residential properties, Hyderabad’s real estate market has witnessed growth in other asset classes. The industrial and logistics (I&L) sector, fueled by the expansion of manufacturing and e-commerce, accounted for 13% of land deals.

Data centers, a crucial component of the digital economy, also emerged as a significant segment, capturing 6% of the market. The growing interest in office space and retail properties further demonstrates the diversity and resilience of Hyderabad’s real estate market. Investors are increasingly attracted to the city’s strong economic fundamentals, vibrant business environment, and growing population. Chairman and CEO of CBRE India, South-East Asia, Middle East, and Africa, emphasized the strength and diversity of the Indian real estate market, highlighting the surge in land deals, particularly in emerging sectors.

Hyderabad’s strategic investments and urban development plans have positioned it as a leading destination for real estate investments in India. As Hyderabad continues to attract both domestic and international investors, its real estate market is poised for further growth and development. The city’s ability to meet the growing demand across various asset classes solidifies its position as a key player in India’s real estate landscape.