Hyderabad Market Rebounds with ₹4,139 Cr in February Sales
After a mutedJanuary, the city's residentialmarketstageda strong 32%month-on-month recovery withpremium homes above ₹1crore driving nearly halfthe totaltransaction value
Hyderabad's residential property market recorded 6,179 registrations worth ₹4,139 crore in February 2026, according to Knight Frank India's latest assessment a 3% year-on-year increase and a remarkable 32% MoM surge. In value terms, the 42% MoM jump signals a clear shift toward higher-ticket transactions.
Homes priced above ₹1 crore accounted for 18% of registrations but a dominant 48% of total transaction value, underscoring the outsized role of the premium segment Meanwhile, the affordable category (sub-₹50 lakh) also rose 7% YoY, suggesting resilience at both ends of the market
The mid-segment (₹50L–₹1Cr) continued to face headwinds, with registrations down 7% YoY and its share falling from 26% to 23%. Units sized 1,000–2,000 sq ft dominated, accounting for 66% of all registrations. IT corridors including Gachibowli, Nanakramguda, Kondapur and Narsingi anchored premium demand.
At the district level, Medchal-Malkajgiri led with 45% of total registrations, followed by Rangareddy at 40%, and Hyderabad district at 14%
⚖ POLICY ALERT
Telangana Amends Building Rules — TDR Flexibility Expanded
(G.O. Ms. No. 95)
In a landmark move on March 22, the Telangana government issued G.O. Ms. No. 95, amending the Telangana Building Rules 2012. Under the new norms, buildings above 21 metres are classified as high-rise, and plots from 750 to 2,000 sq m may use Transferable Development Rights (TDR) to reach 18–21 m height. Plots above 2,000 sq m can now unlock additional floors based on abutting road width 3 extra floors on 40-ft roads, 4 on 60-ft roads, and 5 on 80-ft roads.
Crucially, high-rise projects get a 10% setback relaxation through TDR (subject to minimum 7-metre all-round setbacks) Developers may also now submit 50% of TDR at permission stage and the remainder before Occupancy Certificate, easing initial capital burden
Metro Phase 2: ₹600 Cr Allocation & State Takeover by March-End
The Telangana Budget 2026-27 allocated ₹600 crore toward Hyderabad Metro Phase 2 The state government proposes a massive 76.4–86.1 km expansion across five corridors (Total Inv: ₹24,269 Cr)
Key Corridors: Airport-to-Future City (39 6 km), JBS-toMedchal (24 5 km), JBS-to-Shamirpet (22 km) A deadline of March 31 was set for the state to formally take over metro operations from L&T.
KEY LAUNCHES
Prestige Golden Grove
Tellapur 28 7 acres, 10 towers (G+52) Largest township launch of 2026
The Strait of Hormuz blockade since early March 2026 has emerged as the most significant near-term risk. Forced rerouting around the Cape of Good Hope has added 10–20 days to shipping times and ₹1 5–3 5 lakh per container in costs
Steel prices have surged ~20% to ₹72,000/tonne (from ₹62,000) Aluminium has hit ₹3 5 lakh/tonne Consultancy Anarock warns overall construction costs could rise 3–5% in 2026
Labour wages may rise up to 12% with the new Labour Code Even if the blockade ends, costs will not decline immediately Luxury high-rise segments are most exposed, with an estimated ₹50+/sq ft addition to building costs
₹72K ▲ 20%
STEEL/TONNE (SINCE FEB)
PRICE WATCH MARCH 2 0 2 6
TELANGANA BUDGET 2 0 2 6 -2 7
• Total outlay: ₹3.24 lakh crore; GSDP growth 10.7%.
• MA&UD allocation: ₹17,907 crore for urban development
• Indiramma Housing: ₹7,430 crore; 4 5L homes sanctioned
• Metro Phase 2: ₹600 crore earmarked for expansion
• H-CITI initiative: ₹2,654 crore for urban infrastructure.
COMMERCIAL
Office Market: 10–12 Mn sq ft Demand Projected
Hyderabad remains a leading hub with Colliers projecting 10–12 mn sq ft demand in 2026 Key completions include Rajapushpa West Avenue, SAS iTower, and Raheja
Mindspace B1&B8
Caution: ICRA warns Grade-A vacancy could rise to 24–24 5% by March 2026 due to supply outpacing absorption, especially in Gachibowli/Financial District
MARKET PULSE
Slowdown Signals Amid Structural Strength
Telangana Today reported signs of a slowdown with Jan 2026 registrations down 14% YoY before the Feb rebound
However, the structural story is bullish: prices surged from ₹6,799/sq ft (Mar 2025) to ₹9,430/sq ft (Mar 2026) a 38.7% YoY gain New TDR norms add ₹100–400/sq ft cost, which buyers must factor in
REAL ESTATE DIGEST
Tier-II Cities: 25–100% Land Price Surge
Forecast
Square Yards' March 2026 report identifies Bhubaneswar, Visakhapatnam, Varanasi and Erode as next growth engines, with land prices expected to double over 2–4 years driven by Budget 2026's infrastructure push and PM Gati Shakti.
India's Second-Home Boom
The second-home market is shifting to deliberate capital allocation Luxury leisure destinations Goa, Alibaug, Lonavala and Rishikesh are top picks.
NeoLiv launched a 12-acre gated community in Alibaug targeting ₹2–10 Cr segment NRI participation is accelerating
RBI Holds Repo Rate at 5.25%
RBI's MPC unanimously voted to hold the repo rate at 5 25% in February 2026 (unchanged), keeping a neutral stance. Realty stocks (Nifty Realty ~709) saw volatility Developers welcomed the stability
National Office Market: 70–75 Mn sq ft
India's Grade-A office market is expected to touch 70–75 mn sq ft in demand in 2026, with Bengaluru, Hyderabad and Delhi-NCR anchoring growth
GCCs, flexible workspaces and flight-to-quality trends are the primary drivers nationally (Colliers, March 2026).
APRIL OUTLOOK & KEY WATCH POINTS
�� Metro Phase 2 Approvals: Track Central Govt approval for 76 4 km Phase 2A State takeover of Phase 1 from L&T expected by March 31 Approval could trigger strong land value uplift along new corridors
�� Land Value Revision: Telangana's Registration & Stamps Dept is reviewing land values statewide for the first time in years An upward revision would raise stamp duty and impact mid-market buyer decisions
�� Material Costs & Project Timelines: Monitor the Hormuz situation closely Steel prices at ₹72K/tonne and aluminium at ₹3 5L/tonne could delay under-construction premium towers Buyers should check project-specific cost escalation clauses
�� Premium Segment Dominance: With 48% of transaction value from sub-18% of units, the ₹1 Cr+ segment will continue to lead Watch for new luxury launches in Kokapet, Neopolis and Financial District in Q1 FY27
�� TDR & New Permissions: Buyers evaluating new launches should verify whether projects hold pre-Jan 2026 sanctions (exempt from new TDR cost mandates) to avoid unexpected price hikes of ₹100–400/sq ft.
