Hyderabad Residential Market: Why the Value Segment Dominates Home buyer Demand

Hyderabad’s residential market is one of the most dynamic in India, balancing affordability with premium aspirations. While luxury projects are gaining visibility, the true backbone of the market remains the value segment—mid-range and affordable housing. Defined by properties under ₹1 crore, this segment attracts the largest share of buyers, particularly IT professionals and middle-class families aiming for home ownership.

Key Topics We Will Dive Into in This Blog

• What defines the value segment in Hyderabad’s real estate market
• Why properties under ₹1 crore dominate sales and registrations
• The role of price-per-square-foot (psf) in driving demand
• Home buyer preferences: unit sizes and 3 BHK dominance
• Co-existence of affordable housing with luxury trends
• How Spaces Realty helps buyers find the right fit in value-driven markets

I. Value Segment Defined by Price and Sales Volume

Property registration data shows that Hyderabad’s market activity is heavily concentrated in affordable and mid-range properties:

• Affordable Homes (Below ₹50 Lakhs): 45,605 bookings, the largest number of sales.
• Mid-Range (₹50 Lakhs–₹1 Crore): 19,964 bookings.
• Total Value Segment (≤ ₹1 Crore): 65,569 bookings dominate the market.
• Above ₹1 Crore: Just 11,044 bookings, underscoring how limited luxury demand is compared to the value-driven majority.

Takeaway: Nearly 86% of all home transactions are happening in the affordable and mid-range categories, making this the clear sweet spot of Hyderabad’s housing market.

II. Mid-Range Dominance: Price Per Square Foot

The ₹5,000–₹10,000 psf range represents the most active segment:

• 87% of demand and 64% of supply comes from properties priced in this bracket.
• Even with an 80% capital appreciation from 2020 to 2024, Hyderabad remains affordable compared to other metros.
• Large inventory is available below ₹2 crores, making the city attractive for both end-users and investors.

III. Buyers Value Spacious Units

Hyderabad’s homebuyers want not just affordability, but spaciousness.

• 1,000–2,000 sq ft units dominate with 69% of registrations.
• 1,250–2,000 sq ft is the sweet spot, accounting for 58% of demand and 44% of supply.
• Smaller homes (500–1,000 sq ft) form just 14% of sales, while larger units (2,000–3,000 sq ft) contribute 11%.

Functionality and space are central to how Hyderabad defines “value.”

IV. 3 BHK Units Dominate Demand

When it comes to configurations, Hyderabad’s buyers prefer larger family-oriented homes:

• 3 BHK: 70% demand share.
• 2 BHK: Just 24% of demand.
• Pricing difference:
• 2 BHK units: ₹8,100 psf (average).
• 3 BHK units: ₹8,600 psf.

Buyers are willing to pay a slight premium for the comfort and versatility of 3 BHK homes.

V. The Co-Existence of Luxury and Value

While the value segment dominates sales, the luxury segment is expanding due to Hyderabad’s strong economic fundamentals and influx of high-income professionals.

• Luxury Supply: 70% of new launches are in the premium category (> ₹1.5 crore).
• Luxury Price Points:
• Multistorey apartments: ~₹7,000 psf.
• Independent houses: ~₹8,700 psf.
• Villas: ~₹10,800 psf.
• Affordable Luxury: Many mid-range projects now include luxury features like clubhouses, landscaped gardens, and pools at competitive prices.

This creates a dual-market—where budget-friendly sales dominate in volume, but premiumisation steadily grows in visibility.

Investor Takeaway

Hyderabad’s residential market reflects two strong truths:

• The value segment (under ₹1 crore, 5,000–10,000 psf, 3 BHK spacious units) will continue to dominate demand and sales.
• The premium and luxury segment is rising in parallel, creating opportunities for investors targeting inspirational buyers.

For buyers, this means choosing between secure, high-demand value properties and premium projects with elevated lifestyle offerings.

How Spaces Realty Helps

At Spaces Realty, we bridge the gap between value-driven buyers and aspirational lifestyle seekers:

• For value buyers: We provide verified affordable and mid-range options in prime and emerging corridors, ensuring legal safety and appreciation potential.
• For premium seekers: We curate luxury projects that combine strong fundamentals with premium amenities, helping HNIs and professionals make lifestyle-upgrading investments.

With our insights and on-ground expertise, you don’t just buy a house—you secure a future-ready investment.

Explore curated homes at Spaces Realty