Hyderabad has established itself as a pivotal player in India’s real estate landscape over the last ten years, driven by a flourishing IT industry and the influx of multinational corporations. The city’s affordable cost of living, dependable infrastructure, and superior quality of life have made it an attractive location for both investors and prospective homeowners, says Kirthi Chilukuri, Founder & MD, Stonecraft Group.
In an exclusive interview with Sanjeev Sinha, Mr Chilukuri discusses his perspectives on the evolution of the real estate sector in Hyderabad in recent years and the factors contributing to the increasing demand for housing and commercial property. Excerpts:
How would you evaluate the performance of the real estate sector over the past year? What are your forecasts and expectations for the sector in the year ahead?
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The past year has been remarkable for the real estate sector. According to recent studies, Hyderabad witnessed a 17% surge in residential sales year-over-year by Q3 of 2024, with premium and luxury segments seeing particularly robust demand. This trend reflects a shift in buyer priorities, as people seek spacious, high-quality accommodations with seamless access to essential infrastructure and greenery. Looking to 2025, we expect this growth trajectory to continue. Industry forecasts suggest that the focus on green and sustainable living spaces will become even more pronounced. India’s green building market is projected to double by 2030, and we’re committed to contributing to this sustainable growth.
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What changes have occurred in the real estate sector of Hyderabad over the past decade, and what elements have contributed to this expansion?
Over the past decade, Hyderabad has emerged as a cornerstone of India’s real estate market, spurred by a thriving IT sector and the arrival of multinational companies. The city’s competitive cost of living, reliable infrastructure, and high quality of life have positioned it as a prime destination for investors and homeowners alike. The past decade has seen remarkable strides in infrastructure development in Hyderabad, especially with a greater emphasis on sustainability and integrating natural elements into urban spaces. The shift towards valuing open spaces, green architecture, and eco-friendly designs has been a prominent trend, spurred significantly by the experiences and realizations brought on by the COVID-19 pandemic.
Hyderabad’s strategic location, government-backed initiatives like RERA, and the creation of IT hubs and special economic zones (SEZs) have attracted investments and bolstered real estate demand. According to Knight Frank’s India Real Estate report, Hyderabad accounted for 13% of India’s total commercial real estate transactions in 2023.
The demand for homes has significantly risen in the past few years. What are the main factors driving this increased demand?
The surge in housing demand can be attributed to multiple factors. In the post-Covid landscape, there’s been a marked shift in priorities, with people viewing homeownership as a means of long-term security. Many young professionals and families see real estate as a stable investment, contributing to financial resilience. Hyderabad’s reputation as a technology hub has also made it attractive to a younger demographic looking to invest in a city with promising growth potential.
The co-working space business has gained substantial traction recently. What is your perspective on the demand for co-working spaces in Hyderabad, and how do you see this trend evolving?
Hyderabad’s co-working space segment has witnessed tremendous growth, fuelled by its flourishing startup ecosystem and the IT sector. The city has one of the lowest vacancy rates for commercial spaces among India’s metros, around 10% in Q2 2024, according to JLL, indicating robust demand for flexible office options. We expect this trend to intensify as more startups and SMEs seek cost-effective and adaptable workspaces. Hyderabad’s competitive real estate prices, coupled with an influx of tech-driven firms, position it as a preferred destination for co-working spaces.
Golf City projects have recently garnered significant interest. Could you provide further insights into their anticipated effects on the local real estate market and the surrounding community?
Golf City projects are a transformative addition to Hyderabad’s real estate landscape, offering high-net-worth individuals a luxurious lifestyle that includes exclusive amenities and green landscapes. The collaboration between the Stonecraft Group and AIVOT Golf & Sports Management Pvt Ltd to establish South India’s inaugural PGA-standard golf course exemplifies our dedication to this ambitious vision. This project is not only a first for Hyderabad but also a unique offering for India, promising an exceptional experience that redefines standards within the real estate sector. With the PGA Golf City initiative, clients will become part of an expanding community that prioritizes excellence and innovative design. The anticipated economic benefits include the creation of local job opportunities and the attraction of investments in the surrounding hospitality and retail industries. Luxury golf communities will further enhance the city’s appeal, increasing property values and establishing a new benchmark for upscale living in Hyderabad. Additionally, we are dedicated to sustainable development, ensuring that these initiatives positively impact the environment while benefiting the community.
