A viral Reddit post has ignited a heated discussion on Hyderabad’s luxury real estate surge, with users questioning whether the city’s property market is overheating. The post, which claimed that “Hyderabad’s real estate market is doomed,” accused developers of overbuilding in upscale micro-markets like Kokapet, Neopolis, and Narsingi — where land prices have touched ₹30–35 crore per acre and luxury apartments are being launched at ₹5–10 crore.

“Rental yields are just 2–3%, resale is dead, and the government can’t roll back FSI without wrecking land prices,” one of the Redditors wrote, describing the situation as “a slow-motion crash” in the making. Homebuyers and investors argued that the city’s luxury segment has outpaced its genuine end-user demand.

The discussion soon expanded beyond Hyderabad. Redditors drew parallels with Gurgaon’s speculative market, where 1,100–1,250 sq ft apartments priced at ₹1.5–2 crore are being flipped by early investors before possession. “Foolish buyers are picking up these flats at inflated prices and getting stuck later,” one user wrote, accusing builders of deliberately restricting supply to keep prices high.

A Bengaluru-based homebuyer said that the issue isn’t unique to Hyderabad. “Half the flats are booked by investors or landowners before a project even launches,” he said, highlighting how India’s housing market is often propped up by investor inflows and opaque pricing, rather than pure residential demand.

Some homebuyers defended Hyderabad’s market fundamentals, citing the city’s consistent job growth and expanding tech sector as stabilising forces. “People building those luxury flats have deep pockets,” one of the Redditors wrote. “They can easily wait three to five years to sell. People will keep coming to metros like Hyderabad because of jobs and education.”

Another Redditor argued that talk of a crash was misplaced, saying, “India has enough people with strong incomes and businesses to absorb high-end supply. Those who can’t afford these homes simply aren’t the target buyers.”

A few users also took issue with the claim that FSI drives prices, clarifying that its purpose is to regulate population density, not affordability. One user noted, “You’ve got FSI wrong; it doesn’t control prices. Hyderabad is witnessing the emergence of numerous new global capability centres in the city’s corridors, such as Hitech City and the Financial District. The NRIs are also increasing their real estate exposure here.”

Property values across Hyderabad’s premium neighbourhoods continued to climb in the first few quarters of 2025. Data from Cushman & Wakefield shows that prices in Banjara Hills rose by approximately 8%, averaging ₹12,000– ₹15,000 per square foot. A similar momentum was observed in areas near the IT corridors, such as Madhapur and Gachibowli, where rates ranged from ₹8,000 to ₹8,250 per sq ft.