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Hyderabad’s luxury housing boom sparks online debate over sustainability and demand
Hyderabad real estate: Several homebuyers pointed out oversupply in luxury segment, investor dominance, and whether the tech growth can sustain soaring prices
A Reddit post has sparked debate over Hyderabad’s luxury housing frenzy, with one user claiming the city’s property market is “doomed.” Several homebuyers have questioned whether the city’s rapid expansion, fueled by an unlimited Floor Space Index (FSI) policy, has gone too far.
The Reddit post claimed that “Hyderabad’s real estate market is doomed,” arguing that developers have rushed to acquire land in Kokapet, Neopolis, and Narsingi at ₹30–35 crore per acre, betting on ever-growing demand for ₹5–10 crore “luxury” apartments.
“Rental yields are just 2–3%, resale is dead, and the government can’t roll back FSI without wrecking land prices,” one of the Redditors wrote, describing the situation as “a slow-motion crash” in the making. Homebuyers and investors argued that the city’s luxury segment has outpaced its genuine end-user demand.
Also Read: Hyderabad real estate: Are soaring property prices making it difficult for young techies to buy homes and get married?
Investors vs end users
The discussion soon expanded beyond Hyderabad. Redditors drew parallels with Gurgaon’s speculative market, where 1,100–1,250 sq ft apartments priced at ₹1.5–2 crore are being flipped by early investors before possession. “Foolish buyers are picking up these flats at inflated prices and getting stuck later,” one user wrote, accusing builders of deliberately restricting supply to keep prices high.
A Bengaluru-based homebuyer said that the issue isn’t unique to Hyderabad. “Half the flats are booked by investors or landowners before a project even launches,” he said, highlighting how India’s housing market is often propped up by investor inflows and opaque pricing, rather than pure residential demand.
‘Hyderabad’s tech sector is still intact’
Some homebuyers defended Hyderabad’s market fundamentals, citing the city’s consistent job growth and expanding tech sector as stabilising forces. “People building those luxury flats have deep pockets,” one of the Redditors wrote. “They can easily wait three to five years to sell. People will keep coming to metros like Hyderabad because of jobs and education.”
Another Redditor argued that talk of a crash was misplaced, saying, “India has enough people with strong incomes and businesses to absorb high-end supply. Those who can’t afford these homes simply aren’t the target buyers.”
A few users also took issue with the claim that FSI drives prices, clarifying that its purpose is to regulate population density, not affordability. One user noted, “You’ve got FSI wrong; it doesn’t control prices. Hyderabad is witnessing the emergence of numerous new global capability centres in the city's corridors, such as Hitech City and the Financial District. The NRIs are also increasing their real estate exposure here.”
Also Read: Bengaluru vs Hyderabad: Where should techies buy their first home? Netizens weigh in
How Hyderabad’s property prices are trending in 2025
Property values across Hyderabad’s premium neighbourhoods continued to climb in the first few quarters of 2025. Data from Cushman & Wakefield shows that prices in Banjara Hills rose by approximately 8%, averaging ₹12,000– ₹15,000 per square foot. A similar momentum was observed in areas near the IT corridors, such as Madhapur and Gachibowli, where rates ranged from ₹8,000 to ₹8,250 per sq ft.
According to GV Jagdish, a realtor with Hanu Reddy Realty, those who invested in the early 2000s benefited from much lower entry costs.
“Over the years, Hyderabad’s landscape has been reshaped by large infrastructure projects, expanding tech corridors, and strong government support for startups,” he said.
“Today, prime IT localities like Banjara Hills and Gachibowli command prices almost comparable to Bengaluru’s prime markets," Reddy said.
