Knight Frank: Hyderabad Real Estate Report 2025
Jan 10, 2026
Hyderabad’s real estate market in 2025 stood out for its resilience, depth of demand, and strong premium orientation. Based on Knight Frank’s H1 and H2 2025 reports, the city demonstrated balanced growth across both residential and office segments, supported by robust economic fundamentals and sustained occupier confidence.
Hyderabad Real Estate Overview – 2025
According to Knight Frank, Hyderabad emerged as one of the most consistent performers among India’s top eight cities in 2025, recording growth in residential sales while maintaining healthy absorption and rental appreciation in the office market.
Residential Market: Steady Volumes, Premium-Led Growth
Sales & Launches (Full Year 2025)
Total residential sales: 38,403 units, up 4% YoY, making Hyderabad one of the few major cities to record annual growth.
H1 2025: Residential sales increased marginally, supported by end-user demand and improved affordability.
H2 2025: 19,355 units sold, registering 5% YoY growth, reflecting sustained buyer confidence even as volumes plateaued nationally.
New launches (2025): 40,737 units, down 7% YoY, indicating a conscious moderation by developers to manage inventory.
Insight: Developers in Hyderabad prioritized supply discipline over aggressive launches, helping the market remain stable despite rising prices.
Price Movement
Average residential price: ₹72,345 per sq m (₹6,721 per sq ft).
Annual price growth: +13% YoY, among the highest across Indian cities.
H2 2025 price growth: +6% over H1, driven by premium and high-rise developments.
Insight:
Price appreciation was demand-driven, supported by premiumization rather than speculative buying.
Ticket-Size & Buyer Preference
Homes priced above ₹1 crore accounted for over 50% of total sales in H2 2025.
Affordable and mid-segment housing saw slower traction, while ₹1–5 crore homes dominated both sales and new supply.
Buyer preference clearly shifted toward larger homes, better amenities, and lifestyle-led communities.
Inventory & Market Health
Unsold inventory: 54,878 units, up 4% YoY.
Quarters to Sell (QTS): 5.8 quarters (≈17–18 months), indicating a balanced and healthy market.
Inventory growth was mainly concentrated in higher ticket sizes, but absorption remained steady.
Office Market: Strong Occupier Confidence
Leasing Performance
Total office leasing (2025): 11.4 million sq ft, up 10% YoY.
H2 2025 leasing: 5.5 million sq ft, showing stable momentum despite global headwinds.
Hyderabad remained one of the top-performing southern office markets.
Demand Drivers
Global Capability Centres (GCCs) continued to be a major occupier segment.
Strong participation from IT services, flex workspace operators, and technology-driven firms.
Preference remained firmly skewed toward Grade A office spaces in established corridors.
Supply, Vacancy & Rentals
New office completions (2025): 4.3 million sq ft, down 72% YoY, leading to supply tightness.
Vacancy levels: Continued to trend downward.
Office rental growth: +10% YoY, placing Hyderabad alongside NCR as the top rental growth markets in India.
Insight:
Limited new supply combined with steady demand strengthened landlord pricing power across key micro-markets.
Key Takeaways for Hyderabad – 2025
Hyderabad was among the few cities to record residential sales growth in both H1 and H2 2025.
The market clearly transitioned toward premium and luxury housing, with price appreciation outpacing volume growth.
Office real estate remained structurally strong, supported by GCC expansion and constrained supply.
Healthy QTS levels across residential segments confirm no signs of market stress or correction.
Conclusion
Knight Frank’s 2025 analysis positions Hyderabad as a structurally resilient real estate market, driven by end-user demand, premium housing preferences, and sustained corporate occupier interest. With controlled supply, strong price momentum, and robust office leasing, Hyderabad continues to strengthen its position as one of India’s most balanced and future-ready real estate destinations.
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