After years of steady growth, Hyderabad’s real estate sector is showing signs of a long-term slowdown.
Industry insiders caution that the days of sharp price increases may be over — at least for now. Over the next five to six years, price appreciation is expected to remain modest, with annual growth projected at just 3–7%, a far cry from the boom periods of the past.
A key factor behind this cooling trend is the delay in critical infrastructure projects.
The much-anticipated Regional Ring Road (RRR) and metro rail expansion — both touted as game-changers for the city’s connectivity and livability — have hit significant roadblocks.
Slow progress on these fronts is dampening investor sentiment and impacting the pace of both residential and commercial development.
Experts warn that if execution doesn’t pick up, Hyderabad may struggle to maintain its momentum in the commercial real estate space post-2026.
This is particularly concerning in the context of rapid changes brought about by cost-cutting measures and the widespread adoption of work-from-home models, which are already reshaping demand patterns in the office segment.
For homebuyers, the message is clear: exercise caution. Industry veterans suggest focusing on properties from developers with a proven track record and avoiding speculative purchases.
Projects that are already 80% or more complete offer greater security, and buyers are advised to prioritize end-use over investment motives.
For those eyeing land, plots near the Outer Ring Road (ORR) and major highways — with clear legal titles — are considered safer bets. However, the risk of fraud and litigation remains, and due diligence is essential.
Luxury homebuyers are also urged to stick with financially stable developers who have the resources to deliver on their promises without compromising on quality.
Without swift and effective implementation of key infrastructure projects, Hyderabad risks losing its competitive edge in the national real estate landscape.
It is hoped that the Telangana government will focus on these issues to keep the city’s real estate demand on track.
