Hyderabad
For thousands of middle-class families across Hyderabad, the dream of owning a home—a defining symbol of security and social progress—has begun to fade. Skyrocketing property prices, inflated land values, rising interest rates, and a surge in fraudulent real estate practices are leaving prospective buyers frustrated and disillusioned.
“I’ve been saving for over a decade, but every time I get close to affording a flat, the prices go up again,” said Professor Ch. G.V.N. Prasad, a customer and also a faculty member at an engineering college in Hyderabad. Like many in the city’s middle-income segment, he finds the housing market increasingly inaccessible. “Developers are focusing only on luxury apartments for high-income professionals. Affordable homes have practically disappeared.”
Once considered a sound investment, real estate is now being viewed with growing skepticism by middle-class buyers. “If someone invests Rs1 crore in a flat today, the appreciation may take years to materialize,” Prasad explained. “For most middle-class families, real estate has turned from an asset into a long-term liability.”
The affordability crisis has deepened in Hyderabad’s western corridor, where rapid urban expansion and corporate activity have pushed land prices to unprecedented levels. In sought-after areas like Tellapur and Narsingi, apartment rates hover between Rs8,500 and Rs10,000 per sq. ft.—a steep climb from just a few years ago. Despite the price surge, many projects are sold out before completion, largely due to speculative buying by wealthy investors rather than genuine end-users.
“Developers prefer constructing 1,800 to 2,000 sq. ft. premium apartments because smaller units yield lower margins,” Prasad said. “Affordable housing projects are now rare, even though demand for them is strong.”
Some relief can still be found on the city’s outskirts. Localities such as Ibrahimpatnam and Hayathnagar continue to offer properties in the Rs4,000–Rs5,000 per sq. ft. range, but these areas often lack adequate connectivity and infrastructure. “The focus remains on the Financial District, where multinational presence drives land speculation,” he added.
The problem, however, extends beyond affordability. Cheating practices and misinformation have become an added burden for unsuspecting buyers. Businessman Uppalapati Srinivas warned that some brokers mislead customers into purchasing properties caught in legal disputes. “Buyers should deal directly with developers,” he said. “I’ve seen families lose everything because brokers sold them properties under litigation.”
According to Srinivas, the influx of dual-income software professionals with easier access to bank financing has further fueled competition. “Their higher purchasing power keeps pushing prices up, leaving the average middle-class family struggling to keep up,” he said.
Several projects are currently delayed or abandoned due to high construction costs, liquidity crunches, and regulatory hurdles. Data from various Real Estate Regulatory Authorities (RERA) show a rising number of complaints filed by distressed homebuyers seeking justice for unfulfilled promises.
Industry experts warn that without corrective policy measures, the housing ecosystem risks alienating a large section of potential buyers. “Real estate cannot survive by catering only to the rich,” Professor Prasad cautioned. “Unless developers and policymakers work together to bring affordability back, homeownership will remain a dream for millions.”
Amid this growing discontent, the real estate industry has renewed its call for government intervention.
Vijaya Sai Meka, President of Naredco Telangana (National Real Estate Development Council), said that a dedicated affordable housing policy is essential to revive middle-class homeownership.
“Affordable housing primarily depends on the cost of land,” he explained. “We’ve proposed that the government provide land under a shared development model—where developers and the state share the built-up area. The government’s share can then be sold under pre-set conditions with price and size caps to ensure genuine affordability.”
According to Vijaya Sai Meka, such a model could make homes attainable for thousands without compromising on quality. “Construction costs are largely uniform, but land availability is the real challenge. If the government allocates land in well-connected areas, affordable homes can become a reality,” he said.
Despite rising prices, Vijaya Sai who is also Managing Director of S&S Green Projects, maintains that Hyderabad still offers homes at reasonable rates compared to cities like Bengaluru or Chennai.
“Developers here continue to sell at fair market prices despite higher input costs,” he said, while also advising buyers to choose only RERA-registered projects with verified approvals. “Nobody sells below market value without a reason,” he warned.
The Naredco chief urged the Telangana government to take the lead once again in policy innovation, citing previous reforms like the TG-bPASS and BuildNow systems for speedy building approvals. “Telangana has always been a pioneer in progressive real estate reforms.
