Hyderabad sees a dip in Luxury Housing Sales in 2025
Hyderabad’s luxury property market saw a notable slowdown in the first quarter of 2025, which shows the shifting trends in buyer choices. The property bookings declined by 12% year on year, but there was a notable surge in premium housing, with Rs. 1 crore value homes.
The drop in sales is due to varying factors, including high property prices and a shift in focus towards mid range housing by the buyers. Despite the decline, the value of homes booked is high, which is above Rs 4,000 crores.
Apart from luxury housing, Hyderabad’s overall real estate bounced back with total housing sales increasing by 10% every year across all other segments. The real estate continues to grow because of its expanding IT sector and reasonable property rates in non luxury housing categories.
While overall housing bookings fell, the demand for premium homes that are priced above Rs. 1 crore continued to increase. It grew by 2% YoY, which resulted in 20% of total bookings in April 2025, which is an increase from 17% the last year.
The homes priced above Rs. 1 crore formed only 20 per cent of the total volume. But it was a major factor that was 51% to the total value of registrations in April 2025. In terms of the property size, 67% were for homes between 1,000 sq ft to 2,000 sq ft. The units above 2,000 sq ft also increased to 18% of total bookings in 2025 from 15% in April 2024.
The demand for luxury properties was high in districts such as:
- Ranga Reddy
- Hitech City
- Sanga Reddy
- Gachibowli
- Banjara Hills
These prime spots are becoming critical areas for premium housing by potential buyers due to the high ROI.
Real Estate Analysts are sure that the demand for luxury housing will stabilise in the coming quarters of 2025 if builders revise pricing strategies. The luxury real estate is now seeing a pause, and a broader market will evolve soon with varying buyer expectations.
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