PM Modi’s Advisory to Boost Hyderabad’s Demand for Integrated Townships, Redirect Household Savings

SAMUEL JOSHUA

On the back of Prime Minister Narendra Modi’s recent advisory calling for “economic patriotism,” urging citizens to redirect household spending away from non-essential imports such as gold and luxury travel toward productive domestic assets, along with greater emphasis on work-from-home practices and reduced fuel consumption, sentiment in the housing market is expected to improve.

Hyderabad’s real estate market is now expected to witness sentiment-led acceleration, with rising buyer interest across mid-income and premium housing segments.

This development also coincides with the launch of ₹9,400 crore worth of central infrastructure projects in Telangana, including the Zaheerabad Industrial Area and the Greenfield Petroleum Terminal in Hyderabad, which are expected to strengthen connectivity and validate emerging peripheral micro-markets across the city.

Industry estimates place India’s gold imports at about $72 billion every year, while a large amount is also spent on foreign travel and lifestyle expenses. This money forms a big pool of savings that can move into real estate. With gold prices rising nearly 75 per cent in the past year and import duties at 15 per cent, gold is becoming less attractive compared to property, which offers both value growth and rental income.

In Hyderabad, demand is rising for integrated townships, community living and homes with dedicated work-from-home spaces. The WFH advisory is expected to further strengthen this shift. Buyers will now opt for 3BHK and 4BHK homes as work-from-home adoption drives the need for larger layouts, built-in study spaces and co-working facilities in gated communities. Growth is also stronger in northern and eastern Hyderabad micro-markets.

Over 65 per cent of consumers see real estate as the safest investment in volatile times. 8 out of 10 urban families now prefer larger homes over luxury goods, as discretionary spending is seen as a loss while home ownership builds equity.

Temporary spending cuts are expected to help speed up savings for down payments. RBI norms require a 20 per cent upfront payment on most home loans. In Hyderabad, a 2 BHK costs up to ₹40 lakhs and a 3BHK up to ₹70 lakhs, and disciplined savings can reduce down payment time by up to 18 months.

With rising fuel prices and the advisory to reduce fuel consumption, buyers will also be pushed toward Transit-Oriented Development (TOD). Properties within 1 km of metro stations are expected to command a 15 per cent to 25 per cent premium, while the 86-km Phase 2 Metro expansion is set to create new residential hotspots. Western Hyderabad is likely to see 20 per cent to 25 per cent demand growth, driven by a stronger focus on reducing commute time.

While some buyers may delay decisions due to uncertainty, this typically leads to a 30–45 day wait-and-watch phase. However, Hyderabad’s demand remains structurally strong, supported by 10 per cent to 15 per cent annual appreciation and infrastructure-backed fundamentals. 

Cautious sentiment leads to longer evaluation cycles, with timelines extending by 15 to 30 days, though booking volumes remain stable. The city continues to see resilience from IT, pharmaceutical and GCC sectors, with demand concentrating on RERA-approved projects.

In the short term, sales may stabilize for 45 to 60 days, but pent-up demand returns due to rising costs and limited supply. Property prices and construction costs are already rising by 8 per cent to 10 per cent annually, while rents in IT corridors have increased by 15 per cent to 20 per cent.

“The advisory is expected to create a more value-driven market environment, shifting consumer focus away from speculative high-risk projects and strengthening demand for trusted, RERA-compliant developers,” said K Sreedhar Reddy, President, NAREDCO Telangana. He added that the ₹9,400 crore worth of infrastructure projects in Telangana will strengthen peripheral micro-markets and create new affordable opportunities for developers and homebuyers. The advisory is also expected to redirect more household savings into the domestic economy, with real estate remaining a stable long-term investment asset.

Meanwhile, Prabhakar Rao, President, Telangana Builders Association, said, “The Work-From-Home advisory by the Prime Minister will change housing trends, with professionals prioritising larger homes with dedicated work-from-home rooms.” He added that rising fuel costs will push up construction material costs, which in turn will increase home prices more than expected. He also said that as overseas travel spending reduces, savings will increase, which will further boost investment in home buying.

Overall, household spending is expected to shift with the recent advisory, with stronger focus on savings, domestic asset creation and long-term investments, positioning real estate as a key beneficiary in Hyderabad.