Plot twist: Realty boom spreads beyond Hyderabad’s Outer Ring Road as Tier 2, 3 cities lead surge in Telangana

Hyderabad: Real estate activity in Telangana is no longer limited to Hyderabad or areas around the Outer Ring Road (ORR). Tier-2 and tier-3 cities are now witnessing a sharp surge in housing demand, signalling a shift in the state's property landscape.According to data from the Telangana Real Estate Regulatory Authority (TG RERA), nearly 1,000 residential projects are currently underway across districts. Warangal, often referred to as Telangana's second capital, is at the forefront with around 350 projects, the highest among non-metro regions.Property prices in Warangal have seen a steep rise. A 2BHK now costs between Rs 50 lakh and Rs 60 lakh, while 3BHK units range from Rs 80 lakh to Rs 1.2 crore. Given the demand, developers have also launched five gated communities with over 500 units each, priced between Rs 5,000 and Rs 6,000 per sq ft.If that's not all, villa projects have also gained traction, with premium units being sold for Rs 2 crore to Rs 4 crore. Land prices, too, have surged, ranging from Rs 1 lakh to Rs 2 lakh per sq yd in several areas like Balasamudram, Subedhari, Hunter Road and 100 feet road in Hanumakonda, a level once associated primarily with parts of Hyderabad.Demand driven by IT employees, NRIs"Despite supply outpacing demand, a trend similar to Hyderabad -- Warangal and Hanumakonda continue to see steady buyer interest. Around 30% of buyers are IT professionals working in Hyderabad, while 20% are NRIs, with the remaining comprising local businessmen and residents upgrading their homes. This demand for improved infrastructure, strong rail connectivity, proximity to national highways, the Outer Ring Road and plans for an airport, all of which are boosting the city's real estate appeal," said N Amarender Reddy, president, CREDAI Warangal.In fact, a prospective homebuyer in Hanumakonda was in for a surprise when she realised that finding a 2BHK within Rs 50 lakh is no longer feasible. "After visiting multiple residential projects hoping to secure a flat in the Rs 40 lakh range, I found that prices had moved well beyond her budget, with even basic 2BHK units now starting at Rs 50 lakh or more," said N Alekhya, an IT professional in Hyderabad who wants to buy a flat for her parents.Growth spreads to other citiesA similar trend is visible in Karimnagar, Khammam and Nizamabad, where both plotted developments and apartment projects are expanding rapidly.In Karimnagar, housing units are priced between Rs 45 lakh and Rs 75 lakh, with average rates hovering around Rs 4,000 to Rs 4,500 per sq ft. Developers say the city's status as a smart city, its location along the Hyderabad highway and growth in commercial activity have contributed to the real estate upswing.TG RERA data indicates a preference for plotted developments, reflecting a cultural inclination towards land ownership and independent housing in smaller cities. Officials note that rising project registrations in districts like Adilabad, Mahabubabad and Suryapet point to increasing regulatory awareness and transparency beyond Hyderabad, with more developers coming under the RERA framework.Decentralised growth patternDevelopers say the boom in smaller cities is being driven by local economic growth, improving civic infrastructure and rising aspirations for quality housing. Additionally, many professionals working in Hyderabad or abroad are investing in homes in their native towns."Tier-3 cities such as Mancherial, Siddipet, Kamareddy and Bhuvanagiri are also witnessing increased housing activity. With urbanisation spreading beyond the capital, Telangana's real estate sector is gradually becoming more decentralised, reducing Hyderabad's long-standing dominance in the housing market," said E Prem Sagar Reddy, chairman, CREDAI Telangana.