AI Shockwaves Hit Hyderabad Real Estate!
For the past two years, the real estate market in Hyderabad has been moving sluggishly. While there is demand for high-end houses and apartments, the same demand is not being seen for middle-class and lower middle-class budget homes. The main reason for this is the various changes that have taken place across the world, including in the country. Those who were hoping that the real estate market would recover by now are now expressing fears that Artificial Intelligence (AI) could have a severe impact on this sector. In reality, AI has no direct connection with the real estate sector. However, it is well known that there is a strong link between IT jobs and the real estate market. Especially in the case of the Hyderabad market, it is known that people from the Telugu states who work abroad invest heavily. For some time now, uncertainty has also prevailed regarding these investments.
After Donald Trump assumed office as the President of the United States, the confusion created for some time continued, and now there is a situation where Artificial Intelligence (AI) could severely impact IT employees. Reports say that in 2025 alone, as many as one lakh jobs were lost due to AI. Globally, 218 companies have laid off employees. It is estimated that due to AI, by 2030, the number of people who would lose jobs across various sectors in India alone would exceed one crore. Although AI may create new jobs, IT professionals will have to fully update themselves to adapt. Due to the changes brought about by AI, shares of major IT companies in India are also collapsing. The impact of a tool introduced by the US-based AI company Anthropic has led to a crash in IT shares globally. The share price of the country’s major IT company TCS touched a 52-week low of ₹2,579 on Friday. The situation of another major company, Infosys, is also the same. Its share too fell to a 52-week low of ₹1,281. In this way, the share prices of key IT companies have been falling heavily in succession. This shows how much impact AI is having on this sector.
Because of these reasons, there is uncertainty about when and whose jobs might be at risk. In this context, experts estimate that new investments coming into the real estate sector will decline significantly. Especially in the case of the Hyderabad market, there have long been criticisms that it has turned more into a speculative market rather than being based on real demand. As a result, many are saying that the growth of the Hyderabad real estate market is unlikely to be very rapid in the coming days. However, it is being said that due to AI, not only in the IT sector but also in several key sectors, there is a chance of massive changes, in simple terms, major shocks to the job market. In addition to this, several decisions being taken by the Telangana government are also having a severe impact on the real estate sector.
