Hyderabad sees highest demand for luxury houses in percentage terms

Hyderabad: Continuing the post-Covid trend of living life like a king, people have shifted their preference from affordable housing to mid-end and high-end houses. Hyderabad, in particular, displayed the highest demand for luxury (17 per cent of the overall housing sales in the city) and ultra-luxury (eight per cent) segment homes priced above Rs 2.5 crore.

Houses in the affordable housing category come with a price tag of less than Rs 40 lakh, while mid-end houses are priced between Rs 40 - 80 lakh, and high-end homes are priced between Rs 80 lakh to Rs 1.5 crore.

"Buyers' focus has clearly shifted from affordable housing to mid-end and high-end homes. This is very evident from analysing buyer behaviour in the top seven cities in the last fiscal year FY21-22 — nearly 80 per cent of the demand is for mid-end and high-end homes, with the affordable housing segment accounting for a mere 10 per cent of the demand," said Anarock Group in a statement.

It attributed higher incomes and increasing awareness of global lifestyle and living standards to buying mid and high budget houses.

“Chennai and Pune showcased the highest demand in the mid-end segment and accounted for nearly 60 per cent and 59 per cent of the total demand in these cities. Bengaluru recorded almost 56 per cent of demand geared towards the high-end segment," said Rahul Phondge, Chief Business Officer, Anarock Group.

"Of the city's overall housing sales, Hyderabad displayed the highest demand for luxury (17%) and ultra-luxury (8%) segment homes priced above INR 2.5 Cr. While average prices in Hyderabad are much lower than in the Mumbai Metropolitan Region (MMR), property sizes in these segments are significantly larger than in MMR.”

Across the major cities, the 2 and 3 BHK typologies yielded the maximum demand, accounting for 64% of the overall demand. The 2BHK units are most popular in Chennai, where nearly 67 per cent of sales during the fiscal year were for this configuration. Bengaluru sold the most 3 BHK units, which accounted for 49 per cent of overall sales during the year, closely followed by Hyderabad with 44 per cent.