Hyderabad continues to make headlines in India’s real estate sector, not just for its rapid expansion but also for its transformation into one of the most premium housing and commercial markets in the country. Two major developments stand out in 2025—the city becoming India’s second costliest housing market and Microsoft’s record-breaking office lease. Both trends are reshaping the way investors and buyers look at Hyderabad.
Hyderabad – Now India’s 2nd Costliest Housing Market
For years, Hyderabad was seen as a balanced market offering affordability along with modern lifestyle options. But that narrative has changed dramatically. With luxury flats priced above ₹3 crore dominating sales, Hyderabad has now emerged as India’s second costliest housing market, only behind the National Capital Region (NCR).
- Premium housing dominates: Over one-third of residential sales by value in H1 2025 were from high-end apartments and villas.
- Affordable homes are shrinking: With developers focusing on gated communities, smart homes, and lifestyle-driven projects, the affordable housing segment is fast disappearing.
- Growing demand from NRIs and professionals: Rising incomes, global exposure, and investor appetite have turned luxury projects into the new norm.
This shift clearly indicates Hyderabad’s transition from a cost-effective city into a premium lifestyle destination.
Microsoft’s Mega Lease – A Game Changer for Commercial Real Estate
While luxury homes dominate the residential space, Hyderabad’s commercial real estate is equally buzzing with activity. In one of the city’s largest office deals ever, Microsoft India has leased 264,000 sq. ft. of premium office space in the Financial District, at a staggering ₹5.4 crore per month, along with a ₹42 crore advance.
- Boost to investor confidence: Such large-scale deals by global tech giants reaffirm Hyderabad’s position as a preferred IT and business hub.
- Ripple effect on housing: Big-ticket commercial expansions directly fuel demand for nearby premium residential communities.
- City’s global standing: Hyderabad is no longer just competing locally—it’s becoming a strong global destination for real estate investments.
This single deal highlights the strength of Hyderabad’s office space market, further cementing the city’s reputation as a powerhouse for corporate and residential growth.
Final Thoughts
Hyderabad’s real estate is in the middle of an exciting transformation. On one side, it is pushing affordability to the margins as luxury housing takes center stage. On the other, corporate giants like Microsoft are betting big, ensuring that commercial real estate continues to thrive.
For investors, buyers, and professionals, this means one thing—Hyderabad is no longer just growing, it is evolving into India’s premium real estate capital.