The boom in tech salaries is helping home prices in Hyderabad where rates haven’t declined since 2014

About 24,312 residential units were sold in the city during 2021, a 147 percent growth compared to the COVID-hit 2020.

The report also said that Hyderabad had not seen a single year of decline in average price per square foot since 2014, which is when the formation of Telangana took place. Despite no price correction, inventory has halved in the last one year.

Veera Babu, Managing Director – Hyderabad & East India, Cushman and Wakefield, a global commercial real estate services firm, said the boom in the residential market could be attributed to employment generation in the city.

"The market started picking from 2014, and now it's at its peak. It is fundamentally strong because of the substantial employment generation that has happened in Hyderabad, which is reflected in the residential market. The IT sector has done very well for the last four years. We are second after Bengaluru now. That's creating employment, one aspect that's keeping residential market stronger," Babu told CNBCTV18.com.

The report added that the city toppled Bengaluru to become India's top commercial real estate destination in terms of gross office space last year.

“We are not competing with any other city in India. Our aim is to put Hyderabad amongst the top 30 cities in the world so far as quality of life and economic competitiveness is concerned,” KT Rama Rao, minister of Municipal Administration and Urban Development, was quoted as saying in the MA&UD report.

The Hyderabad residential market consists of four districts — Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

Medchal-Malkajgiri recorded the highest home sales with a share of 44 percent in April, while Rangareddy district was second with 40 percent sales. The registrations in other districts also remained stable.

Trends on Housing.com show areas such as Sanikpuri, Kokapet, Kollur, and Jeedimetla have flats in gated communities that are sold between Rs 50 lakh and Rs 80 lakh. For cheaper flats, upcoming suburban areas outside Greater Hyderabad Municipal Corporation (GHMC) limits like Shamirpet, Ghatkesar, Nandikandi, and Medchal are attracting gated community projects with a 2BHK starting at Rs 20 lakh to Rs 25 lakh.

However, Babu said that the sales velocity has come down in the last two months in the city and that the price curve is likely to flatten owing to the oversupply due to higher launches this year.