Big budget homes shoot up in fringes as builders take ultra-luxury plunge in Hyderabad

HYDERABAD: Ultra-luxury seems to be the new mantra of Hyderabad's residential property market. From just a handful until pandemic, almost all real estate companies now have at least one such project on their portfolio - each home 6,000 to 15,000 square feet (sft) in size, with expansive common areas and statement designs. The cost of each home: Upwards of 5 crore (on an average).Popular locations: Kokapet to Mokila in the west and Tukkuguda, Shamshabad and Maheshwaram in the south.
While those developing these projects - apartments and villas - claim that Hyderabad has a steady demand for such projects, many from the industry feel it's a temporary trend. They even fear that the city could soon be sitting on an oversupply of such super-expensive homes, struggling to find takers.

"The ideal project size for the local market here ranges from 1,200 sft to 4,000 sft at the most. Anything beyond that size might not make too much economic sense. Though there might be a certain amount of requirement for this segment, I feel some developers are over-estimating this demand," said Shyam Rao Jupally, managing director of My Home Constructions.
Realtors feel that this trend could continue for another 6 to 12 months. "Post that, given the steep rise in prices, it may become financially out of reach of end-users, beyond a certain limit," said Veera Babu, managing director (Hyderabad and east India), Cushman & Wakefield.
Confirming the increase in momentum of the luxury segment in the last two years, he said multiple developers are now coming up with "larger units loaded with niche amenities, bigger plot sizes, super tall structures, branded interiors and other to bring the element of superiority and exclusivity in these projects".
But even as some question this "unhealthy obsession with ultra-luxury", builders say their projects are registering good sales numbers.
"We have managed to sell over 70% of our project without any advertising. A lot of senior executives (IT and pharma in particular), businessmen and NRIs are expressing interest in these projects to upgrade their lifestyles," said a senior executive of a firm selling homes with price tags of 6 crore and above.