Is Hyderabad real estate a ticking time bomb ?
Are Hyderabad Prices Sustainable? The Short Answer: It Depends
#caution#real estate #hyderabad#2025 and beyond
Last Updated :04 July 2025

Whether property prices in Hyderabad are sustainable depends on several factors, especially from the buyer’s perspective.
Key Considerations :
Rental Returns:
Across India, rental yields are typically around 2-3%. This is quite low compared to other investment options like mutual funds, which can offer long-term returns of over 11%. This raises the question: why invest in real estate for such modest returns?
- Justification for Investment: The sustainability of prices often comes down to mass buyer sentiment. If buyers believe in continued appreciation or derive satisfaction from ownership, demand can remain strong.
- Long-Term Perspective: Real estate in Hyderabad may offer limited short-term growth opportunities. Substantial appreciation is more likely if you:
- Have the capacity to hold the property for at least 10 years.
- Conduct thorough research to find units at a steep discount (ideally 30% below current market prices).
Advice for Buyers
- Don’t Over-Leverage: Avoid taking on excessive debt.
- Down Payment: If possible, put down at least 50% for a ready-to-move-in home.
- Negotiate Hard: For properties priced above ₹3 crore, a 30% discount may be achievable through negotiation.
- Professional Guidance: Consult a neutral real estate professional before making a decision.
Market Realities
• Price Movements: Price crashes, appreciation, and stagnation can all occur simultaneously in different segments of the market. Ultimately, your decision and timing will determine your outcome.
• Liquidity Concerns: If you’re uncomfortable with market fluctuations or may need to sell within five years, it could be difficult to find a buyer. For best results, plan to hold your property for at least 10 years.
Final Thoughts
As a buyer, your approach and expectations are crucial. If you need help making the right decision, consider reaching out to a trusted agent like is crucial.
All the best for the purchase.