Hyderabad’s real estate market sees a drop in sales and new launches in 2024
Hyderabad, once a booming real estate hub, now faces a significant slowdown, as the property market struggles to maintain the momentum it experienced over the past decade. The city, which had seen rapid expansion into previously untapped regions, now finds itself in a state of stagnation, with sales declining, inventory mounting, and the pace of new launches sharply dropping. What was once a symbol of growth and potential has now become a cautionary tale, as developers and homebuyers alike grapple with a market that is losing steam.
According to recent data from Anarock, the city’s residential sales have dropped by 5 per cent in 2024, with only 58,540 units sold, compared to 61,715 units in 2023. This decline comes amid a broader downturn in the Indian real estate sector, which has been grappling with increased input costs, higher property prices, and political uncertainty related to state and general elections. Hyderabad, traditionally a strong performer in the real estate sector, has now seen a contraction, with only 58,335 new units launched in 2024 — a staggering 24 per cent decline from the 76,345 units launched the previous year.
Interestingly, while cities like the National Capital Region (NCR) and Bengaluru have witnessed growth in housing sales and new launches, Hyderabad has failed to keep pace. Bengaluru recorded a 30 per cent increase in new launches, and NCR saw a 44 per cent rise, making Hyderabad’s poor performance all the more concerning for investors and developers alike. This slowdown has prompted developers to put new launches on hold, waiting for more clarity on market conditions before committing to new projects.
The reasons behind the slowdown are multifaceted. Increased homebuyer demand, particularly for luxury properties, has been tempered by the hardening of property prices. In the aftermath of the pandemic, many buyers have sought larger, more luxurious homes, pushing up demand in the high-end market. However, affordability concerns and rising interest rates have dampened the enthusiasm of first-time buyers, traditionally the backbone of Hyderabad’s real estate market. The surge in demand for premium properties has also resulted in supply shortages in certain sectors, making it difficult for homebuyers to find suitable options at reasonable prices.
From a sustainability perspective, the decline in Hyderabad’s real estate market raises important questions about the long-term environmental and economic impact of unregulated urban growth. The sprawling nature of the city’s development, particularly on the outskirts, has contributed to increased pressure on infrastructure, utilities, and public services. Moreover, the slowdown in new launches offers a chance to reconsider the focus of development, with an opportunity to pivot towards more sustainable practices. Real estate developers could focus on brownfield developments, redevelopment of existing urban spaces, and the integration of green building technologies, ensuring that future projects contribute positively to both the urban environment and the community.
Additionally, there is an urgent need to reassess the sustainability of the city’s expansion model. Urban sprawl, driven by a push to accommodate growing populations in peri-urban areas, is often marked by environmental degradation and an overburdened infrastructure system. The current slowdown could provide a much-needed opportunity for the city’s planners to take a more measured approach, focusing on infrastructure upgrades, enhancing public transportation, and promoting eco-friendly building practices. By embracing sustainability, Hyderabad’s real estate market could reestablish itself as a growth leader, capable of balancing development with environmental responsibility. providing the city with the tools to build a more resilient and sustainable urban landscape. For now, however, it seems that the city’s real estate juggernaut has entered a phase of uncertainty, and only time will tell how long this lull will last and when the market will find its rhythm again.
