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Hyderabad Real Estate Market Sees Steady Growth in Q3 2025

In Q3 2025, Hyderabad’s real estate market continued to display resilience and gradual expansion. Buoyed by strong infrastructure spending, steady demand from IT and corporate sectors, and aggressive land valuations, the market is seeing incremental gains rather than runaway growth. This period reflects a maturing cycle where fundamentals are more important than speculative bubbles.


Key Highlights of Q3 2025

  • Record Land Auctions
    One of the most eye-catching developments in Q3 was a land parcel in Raidurg fetching ₹177 crore per acre at auction — a city record. This underscores the bullish sentiment toward prime corridors.
    Similarly, housing board plots in Chintal saw per-square-yard values cross ₹1.14 lakh. 

  • Office / Commercial Demand Rebounding
    Leasing activity and absorption in Hyderabad’s office markets (especially in HITEC City and Gachibowli) have shown signs of recovery. In Q2, leasing hit about 1.69 million sq ft.
    As India’s office real estate sector recorded a 27% year-on-year investment surge in Q3 (to $0.8B), Hyderabad is part of that revival wave.
    Local reports also suggest that Hyderabad’s office space demand jumped ~35% in the September quarter.

  • Residential Market: Price Appreciation and Launch Activity
    Residential launches in Hyderabad are concentrated largely in the western corridor, which accounted for ~54% of new units in earlier quarters.
    The city is seeing increased interest in premium and upper-mid segments. According to some analyses, properties priced between ₹50 lakh and ₹1 crore are seeing strong uptake. 
    However, affordability is becoming a concern: many mid-income professionals report difficulty in entering the market even in peripheral zones. 

  • Supply vs. Demand & Inventory Trends
    While demand is firming, new supply is being more cautiously introduced. Some areas hint at supply outpacing demand, putting mild pressure on prices. 
    In Q2, new launches across the Hyderabad metro saw notable reductions in some micro-markets.

  • Policy, Regulation & Buyer Safeguards
    Telangana’s regulatory machinery is active: the Telangana RERA has penalized developers for violations and ordered refunds in some stalled or non-compliant projects. 
    In addition, more land reclamation efforts are underway (e.g., in Kondapur) to preserve city land assets and discourage encroachments. The Times of India


Drivers of Growth in Q3 2025

  1. Strong Infrastructure & Connectivity Push
    Expansion of the metro network, Outer Ring Road (ORR), and regional road projects are improving connectivity to emerging suburbs, making them more attractive for residential developments. 

  2. Robust IT / Corporate Ecosystem
    Hyderabad continues to attract global tech firms, captive centers (GCCs), pharmaceutical and life-sciences companies. The growing employment base fuels demand for housing, particularly in tech corridors.

  3. Land as a Strategic Investment
    The record land auctions signal that investors are placing long bets on prime parcels. Land scarcity in well-connected zones is pushing land prices upward, which in turn lifts built-up property valuations.

  4. Premium & Lifestyle Demand
    Buyers are increasingly prioritizing amenities, green open spaces, smart infrastructure, and branded developments. This is pushing developers to innovate and differentiate. 

  5. Cautious Developer Strategy
    Developers are being more selective in new launches, focusing on areas with clear demand forecasts and minimizing speculative risk. This tempered approach is helping stabilize absorption rates.

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