News
Karteesh Reddy Madgula
CEO, GHR Infra
What is the current scenario of the real estate market in India’s southern region?
South India has really settled into a steady, mature rhythm over the last couple of years. Rather than the wild price spikes and speculative buying we saw right after the pandemic, the current momentum is far more grounded. Institutional investors and buyers are leaning into long-term value, guided by healthy rental yields and steady white-collar employment. Global Capability Centers (GCCs) continue to be a massive economic driver here, pulling in talent and expanding commercial footprints across the region. While rising land prices and construction costs have pushed up home prices in prime areas, buyers are still absorbing new supply at a steady clip because the economic fundamentals behind the demand are solid.
How are the market trends specifically in Hyderabad, Bengaluru, and Chennai?
When you look across the major cities, each one plays a distinct role in this story. Bengaluru remains the heavy hitter in terms of sheer market volume and tech-driven rental demand. Chennai is often considered the safest, most balanced market in the south, supported by a mix of auto manufacturing, industrial hubs, and a steadily growing tech sector along its major corridors. Hyderabad, meanwhile, has been the real star performer recently. Large-scale developments in areas like Kokapet and Neopolis have driven strong capital appreciation, and the city has managed to combine high office space absorption with manageable inventory levels.
How are IT and industrial developments driving the real estate market in the region?
The connection between commercial expansion and residential demand in these cities is very direct. Southern metros consistently capture a huge portion of India’s office leasing activity, and that commercial growth naturally spills over into nearby housing markets. Beyond tech, manufacturing and logistics hubs like Adibatla around Hyderabad or Sriperumbudur near Chennai are creating brand-new residential pockets. This diversifies the buyer base, driving demand for everything from mid-segment housing to industrial workforce accommodations rather than relying solely on IT professionals.
What are the buying trends in the residential segment? How are luxury and affordable markets progressing?
The connection between commercial expansion and residential demand in these cities is very direct. Southern metros consistently capture a huge portion of India’s office leasing activity, and that commercial growth naturally spills over into nearby housing mar
kets. Beyond tech, manufacturing and logistics hubs like Adibatla around Hyderabad or Sriperumbudur near Chennai are creating brand-new residential pockets. This diversifies the buyer base, driving demand for everything from mid-segment housing to industrial workforce accommodations rather than relying solely on IT professionals.
What are the buying trends in the residential segment? How are luxury and affordable markets progressing?
In terms of what people are actually buying, there is a distinct move toward premiumization. Homebuyers are looking for larger floor plans, gated communities, and developments built with sustainability in mind, showing a willingness to spend more for a better lifestyle and lower long-term operating costs. The mid-segment housing market is holding up well as home loan rates remain manageable, though affordable housing developers are definitely feeling the squeeze from high land and material costs. It is a real structural challenge for lower-budget housing, but developers are trying to navigate it through better construction tech and design efficiencies.
How is the company developing new projects in the region? Which are the latest key developments?
For developers operating in these markets today, building green and tech-enabled communities is quickly becoming the default rather than a special selling point. Buyers expect solar integration, rainwater systems, and lower utility costs engineered right into the property. In high-growth corridors like West Hyderabad, newer projects are built specifically to lower residents’ day-to-day utility costs while delivering the modern amenities buyers expect. Delivering efficient, well-engineered spaces pays off in the long run through higher retention, better rental yields, and sustained capital value for buyers.
How is property price escalation impacting the buying trends in the region?
Even with prices rising across most major corridors due to higher land and material costs, people haven’t stopped buying; they have just gotten far more selective. Purchasers are gravitating toward reputed developers who deliver on time and choosing well-planned integrated developments that offer strong long-term value. Investors have similarly pivoted away from quick resale flips, placing their focus instead on steady rental income and long-term capital retention.
How do you look at the overall market opportunities in the region? What could be the trends to look for in future?
The overall outlook for South India remains strong, backed by genuine economic activity and active public infrastructure work. Looking ahead, infrastructure expansions like metro lines and outer ring roads will keep opening up peripheral areas, making transit-oriented locations far more accessible. At the same time, alternate living formats like managed co-living will keep gaining traction among the region’s young, mobile workforce. Overall, the market will continue to reward developers who focus on execution, sustainable engineering, and practical, resident-first design.
