Hyderabad’s residential market is undergoing a transition as Tier 2/3 builders pause building new apartment projects.
Escalating tensions related to HYDRA activities and the resulting uncertainty have created a challenging environment for mid-sized players. They face ambiguity regarding which lands are safe for development, making ventures increasingly risky. They also find it difficult to earn the faith of buyers at this juncture.
This has prompted many Tier 2/3 developers to explore Bengaluru’s residential market, which offers comparatively favorable opportunities.
However, Tier 1 developers, occupying the top 1-3 positions in Hyderabad’s real estate market, are daring to withstand this scenario. With immense financial muscle and robust capability to manage potential challenges, they remain undeterred.
As a result, Tier 1 developers are expected to dominate Hyderabad’s residential real estate for the foreseeable future. Their financial stability and established reputation, supported by strong connections with the regional and national power centers, grant them immunity to current uncertainties.
Thus the retreat by Tier 2/3 builders creates an opportunity for Tier 1 developers to attract middle-class buyers and expand their market share before the mid-sized players return from Bengaluru.
With their brand image they can easily earn the faith of middle class and re-ignite the realty market.
