Between 2020 and 2023, Hyderabad witnessed a sharp rise in real estate prices, powered by low interest rates, soaring tech sector salaries, and abundant liquidity. Investors made windfall gains, especially by betting on pre-launch and under-construction flats.
But that cycle is now over. Interest rates have climbed, liquidity has tightened, and the tech sector — once the driving force behind buyer demand — is no longer expanding at the same pace. The layoffs are going on and the threat is for highly paid tech employees.
Despite this shift, many investors still expect returns of 50–70% from early-stage flat investments, hoping to replicate past successes. However, the market math no longer supports such expectations.
Construction costs are rising, supply is abundant, and appreciation is slowing. While Hyderabad remains a relatively stable market compared to other metros, the rapid appreciation seen in recent years is unlikely to return soon.
Real estate experts warn that short-term speculation could lead to disappointment. The focus, they say, must now shift to long-term value and end-user demand. Investors looking for quick profits may find it hard.
