Hyderabad’s fast-expanding skyline, dotted with high-rise residential towers due to the unlimited floor space index, has sparked debate among homebuyers and investors over whether the city’s real estate market is becoming unaffordable without the infrastructure to support it. A Reddit discussion highlighted growing unease around prices, weak resale demand, and the sustainability of a market where ₹2 crore-plus apartments are common.
“What I don’t get is, with so many high rises coming up (40+ floors) without basic infrastructure like proper roads, water supply, and drainage, life in these areas is going to become hell. And I genuinely don’t understand how so many people are buying 2Cr+ flats. Over 20,000 such units are supposedly in the pipeline. Can we ever liquidate these assets easily? Are people buying for investment or to actually live there?” the post said.
Also Read:
Stagnant returns, weak resale market?
“My friend bought a luxury apartment 3 years ago. Still trading at the same price and even less. With interest of home loan returns are negative, he bought for pure investment, unable to exit as well. Many areas are not livable due to construction dust, fewer people, etc. People of Hyderabad still live in the old city due to connections and vibe. All high-tech communities are just for name sake,” one of the Reddit users said.
Another user pointed to a disconnect between primary sales momentum and resale sluggishness, noting that while “the resale market is super dull,” demand in new launches remains steady.
“I do follow other cities’ as well, and comparing Bangalore, Mumbai and some other cities, Hyderabad was cheaper due to unlimited FSI. So people from other states are also looking at Hyderabad. Look at dollar to inr and it keeps increasing, where NRI will keep investing( not all, but people who are still making good money in the US). At the same time, people who have lands in Telangana made crores of rupees and keep buying luxury flats,” the Redditor said.
What is driving demand for ₹2 crore apartments in Hyderabad?
Real estate experts say Hyderabad’s western IT corridor, spanning HITECH City, Gachibowli and the Financial District, has emerged as a key growth engine. This clustering has created a large base of well-paid homebuyers who prefer to live close to their workplaces, pushing up property values across these micro-markets.
“Hyderabad’s IT corridor, especially HITECH City, Gachibowli, and the Financial District, has spawned a lot of high-earning professionals who want to live close to work. This has driven up prices in Western micro-markets. At the same time, major infrastructure projects such as the Outer Ring Road, the new Metro Phase 2, and the airport expansion have made premium addresses even more desirable. Demand for quality is outpacing demand for quantity,” said Mudit Gupta, Senior Director and City Head – Hyderabad, ANAROCK Group.
Experts point out that higher FSI has enabled to build more floor area on the same plot, allowing them to load apartments with high-end features such as larger layouts, amenity decks, and rooftop facilities without raising land costs. “This has been especially good news for gated communities. With more FSI, builders can construct bigger clubhouses, green spaces, and high-rise towers all at once, which makes a ₹2–4 crore product more appealing,” Gupta said.
Senior IT professionals, CXOs, and tech entrepreneurs make up the majority of buyers in this segment. Experts say that many of these buyers have built up large ESOPs or multi-year bonuses and are moving from 2BHK rentals to owned premium homes near their offices.
Also Read:
Are larger homes hurting affordability? What’s the sweet spot for buyers in Hyderabad?
Hyderabad witnessed the steepest correction among major cities in Q1 2026, with residential launches dropping 46% year-on-year to 9,700 units and no new supply recorded in March, according to NoBroker.
“Over 80% of Hyderabad’s apartment supply is 3BHK or larger, with average minimum carpet area at 2,050 sqft, far exceeding any other city. Even at ₹8,000 PSF, the entry ticket costs over ₹1.6 crore. With over 84% of buyers with a budget of ₹1 crore reporting affordability stress, the absorption reckoning was inevitable,” the report said.
Is a higher FSI expected to strain infrastructure?
Real estate experts point out that while overall residential launches have surged post-COVID, the nature of the supply is changing.
“Post-COVID, there has been a push towards more spacious homes, which are low-rise located slightly away from city centres. With more supply available, most of the demand has shifted over from the high-rise segment,” said architect Harsha Sridhar.
At the same time, experts note that policy changes, such as the unrestricted Floor Space Index (FSI), have created a paradox for developers. While higher FSI theoretically allows for taller buildings and greater density, in practice it has also led to a sharp rise in construction costs, particularly due to the need for more complex engineering, greater material use, and enhanced safety systems, they said.
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them)