Hyderabad Real Estate Market 2024: Key Land Deals and Insights
The Hyderabad real estate market in 2024 witnessed notable land acquisitions, albeit with a smaller scale of transactions compared to other major cities in India. Despite these limitations, the city remains a burgeoning hub for residential and commercial real estate. Here’s an overview of the key deals and trends that shaped Hyderabad’s real estate market in 2024.
Highlighting some major changes in the Hyderabad real estate market in 2024, here we go with Microsoft making the biggest acquisition of the year (or nearly) when they bought a 48-acre parcel of land for ₹267 crore and established a state of the art data center. Hyderabad, however, witnessed four major land deals of nearly 67 acres, yet overall activity in the city remained lower than that in other regions such as the Delhi NCR, MMR, and Bengaluru.
Key Highlights:
- Microsoft’s Purchase: Microsoft is the biggest deal in Hyderabad that bought 48 acres from Ranga Reddy district Natco Pharma at ₹267 crores for a data center project.
- Other Transactions:For ₹345 crore, Godrej Properties bought a 12.5 acre parcel in Rajendra Nagar for a 2024 residential project, making that the costliest acquisition in the city so far.
- Kokapet saw investments from Godrej and Lansum Properties too — Godrej bought three acres for a premium residential project and Lansum bought 3.6 acres for a whopping ₹200 crore.
- Market Comparison: In 2023, it was 97 deals for about 2,707 acres, falling to 133 deals for 2,515 acres in 2024. Delhi NCR ranked first with 38 deals over 417 acres followed by MMR with 30 deals over 607 acres, Bengaluru stood in with 26 deals over 307 acres.
Though Hyderabad has fewer deals on national basis, its real estate market is bubbling in premium locations like Kokapet. A cautionary approach towards developers has been imposed by factors including rising land costs and an oversupply of housing units.
Hyderabad still receives massive investments and the city constantly grows into a tech, as well as residential hub.
Microsoft’s Landmark Acquisition in Hyderabad
The largest land transaction in Hyderabad in 2024 was Microsoft’s acquisition of a 48-acre parcel in the Ranga Reddy district from Natco Pharma for ₹267 crore. This deal was aimed at establishing a state-of-the-art data center, marking a significant investment in the city’s technological infrastructure.
Hyderabad overall Land Transactions
In 2024, four purchase deals, using 67 acres of land, have occurred in the city, says real estate consulting firm Anarock’s report. By comparison, the transaction volumes in Delhi NCR, Mumbai Metropolitan region (MMR), and Bengaluru were quite higher.
The three deals were for residential projects and two were in the upmarket Kokapet area in Hyderabad, an area known for premium real estate developments
Key Real Estate Deals in Hyderabad
Value: ₹200 crore
Microsoft’s Data Center Project
Location: Ranga Reddy District
Area: 48 acres
Value: ₹267 crore
Godrej Properties in Rajendra Nagar
Area: 12.5 acres
Value: ₹345 crore (highest price per acre in 2024)
Purpose: Premium residential project
Godrej Properties in Kokapet
Area: 3 acres
Purpose: Premium residential development
Lansum Properties in Kokapet
Area: 3.6 acres
Performance Comparison to other Cities
Hyderabad lagged behind in land transaction volume across the top seven Indian real estate markets. The country was led by Delhi NCR (38 land deals for over 417 acres), MMR (30 deals for 607 acres), Bengaluru (26 deals for 307 acres), and Chennai with 25 deals for 205 acres.
Hyderabad’s Land Acquisition Challenges
The slower pace of land transactions in Hyderabad can be attributed to two key factors:
- Oversupply of Housing Units: Regarding the existing inventory of unsold residential units, developers have been cautious to acquire new land.
- Rising Land Acquisition Costs: The challenges posed to developers looking to expand their portfolios have been due to land prices going up.
Hyderabad Real Estate: Bright Prospects
The real estate market in Hyderabad is on a high even though the number of land transactions is less, due to its robust infrastructure, a robust IT industry presence and augmentation in demand for premium housing. These hotspots for development continue to be areas like Kokapet, Rajendra Nagar and some sections of the Outer Ring Road corridor.
Hyderabad Real Estate – The Bigger Picture
While Hyderabad’s real estate market is seeing fewer deals, it nonetheless has grown due to tech sector investments and high value residential projects. The demand and appeal for the city remain consistent and have a bright future as areas like Kokapet and Rajendra Nagar nez become hubs for luxury as well as tech related developments.
Hyderabad is a city to watch, with significant, high value deals reflecting its emergence as a hipster cultural and high speed technological hub.
