'Hyderabad's Real Estate Market Remains Exceptionally Robust', Claims NAREDCO's Telangana Chapter President
The job opportunities, infrastructure, climatic conditions, safety and values instill confidence in investors making the city a potential global real estate hub.
Published : April 25, 2026 at 2:01 PM IST
Hyderabad: Despite rising costs and political uncertainties, Hyderabad’s real estate market remains exceptionally robust. The job opportunities, infrastructure, climatic conditions, safety and values prevalent in the city continue to instill confidence in investors. This gives a tremendous opportunity to Hyderabad to emerge as a global real estate hub while serving as a viable alternative to cities in the Middle East.
These views were expressed by the President of the Telangana Chapter of National Real Estate Development Council (NAREDCO) Koppula Sridhar Reddy in an exclusive chat with Eenadu-ETV Bharat.
Reddy underlined that Hyderabad is currently transitioning from a phase of standard growth to one driven by premium offerings. "The sale of 9,541 homes and the launch of 9,975 units across new projects during the first quarter of 2026 represent a very positive development. The market is well-balanced. While investors may be exploring various alternative investment avenues, genuine home buyers seeking a residence for personal use continue to make purchases," he said while pointing out that even those that had waited for a fall in prices have realised that prices are unlikely to fall.
"The primary threat facing the Hyderabad market does not stem from a decline in demand; rather, the real challenge lies in the prevailing environment of escalating costs," Reddu said.
Responding to a query on the Middle East crisis disrupting supply chains and its impact on Hyderabad's real estate sector, he said, "Gas supply is absolutely critical to the ceramics industry. The Morbi cluster in Gujarat accounts for an 80% share of the total production. Currently, it is grappling with difficulties caused by the gas shortage."
"Consequently, the prices of tiles and sanitaryware have surged by 10% to 20%. For certain other products, the price hike has been even more drastic, reaching up to 60%. This situation not only inflates costs but also impacts project completion timelines due to delays in finishing works," he added.
He disclosed that the developers in Hyderabad are adopting strategies like procuring materials in advance, identifying alternative vendors and adhering to disciplined procurement planning.
Projecting the sector's future growth, he said, "Driven by expanded connectivity and improved infrastructure, robust growth is poised to take off in North Hyderabad. These areas already enjoy strong demand, thanks to their lush green surroundings and the availability of established social infrastructure."
Reddy identified areas around Shamshabad and Budvel for the next wave of growth while pointing out that connectivity projects surrounding the airport, including the Outer Ring Road (ORR), proposed interchange upgrades and the bullet train corridor, the airport zone and the southwestern regions are becoming increasingly attractive destinations.
"With the expansion of the Metro Rail, the availability of affordable housing in East Hyderabad, specifically in the stretch extending from LB Nagar to Hayathnagar is set to increase significantly," he said..
He further said that the Metro expansion is going to lead to appreciation of land prices in areas connected to the airport, localities surrounding the Financial District and the city's outskirts.
He explained that enhanced connectivity via radial roads will lead to reduced commutation times and increased land utilisation. Consequently, the areas situated between the ORR and the Regional Ring Road will become highly conducive for investment.
"Areas such as Kokapet, Narsingi, Tellapur, Mokila and other localities connected to the ORR that are characterised by robust infrastructure and high market demand are poised to take the lead in this growth trajectory," he said.
When asked about the impact of the Middle East tensions on the real estate sector, he said the conflicts in West Asia are having a significant, albeit indirect impact with the underlying challenges expected to be even more severe.
"A rise in crude oil prices leads to increased manufacturing and transportation costs for essential materials such as cement, steel and aluminum. While this impact may not be visible within a short timeframe, it will inevitably affect project budgets over the long term," he asserted.
Stating that a potential conflict in the Gulf region is likely to have a pronounced impact on the premium and investor-driven segments of the housing market, Reddy underlined, "Nevertheless, the city's real estate sector remains robust, bolstered by strong demand from the Information Technology (IT),Global Capability Centers (GCC) and pharmaceutical sectors, as well as from the local home buyers. Consequently, the primary market continues to maintain its stability."
Commenting on the apprehensions regarding the Non-Resident Indians (NRIs) based in the Gulf countries redirecting their investments towards the safe and rapidly growing Hyderabad market, he said, "Historically, investors from both North and South India have poured substantial capital into that region."
"For a long time, areas like Dubai were perceived as safe havens for investment. However, as that perception shifts and the investors realise these regions may no longer be entirely secure, there is a discernible sentiment emerging that investing in one's own home region is the more prudent choice. As a result, we can anticipate an influx of increased investment into our domestic market," he added.
On the question of Artificial Intelligence (AI) impacting job security within the IT sector that constitutes the largest segment of real estate buyers, he said that Hyderabad's evolution from being merely an IT and Pharmaceutical hub into a thriving innovation hub is bolstering its real estate market.
"AI will not diminish demand; rather, it will transform its very nature. Initially, Hyderabad served primarily as a centre for backend operations such as call centers and software development. Now, with the influx of GCCs and advancements in research and innovation, high-value job opportunities are being created. The manufacturing sector too is expanding within Hyderabad. Despite occasional market fluctuations, the overall outlook for the market remains secure," he said.
On being asked what initiatives is NAREDCOs Telangana chapter undertaking to ensure the availability of affordable homes for the common and middle-class segments, he said, "Given the current escalation in land and construction costs, the definitions and regulations previously established for affordable housing are no longer adequate."
"NAREDCO is advocating an upward revision of the price ceiling for these homes, raising it from Rs 45 lakhs to Rs 90 lakhs. We are appealing for various concessions like the exemption of goods and services tax (GST) and the reduction of registration fees to 2%, as well as for enhanced incentives for rental housing projects. Ensuring that there are no delays in obtaining construction permits is also of paramount importance," he said.
"If the government intends to boost the supply of affordable housing, these projects must be financially viable for developers. Otherwise, builders will naturally gravitate toward constructing middle segment and premium segment homes where inherent market demand already exists. The growth of affordable housing depends entirely on receiving appropriate policy support from the government," he added.
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