Hyderabad’s once-booming real estate market is facing a cooling period, with unit sales showing a noticeable decline in 2024. According to the latest data from ANAROCK, the first half of the fiscal year saw a 7% drop in the number of homes sold compared to the same period in 2023. Despite a substantial rise in property values, with the average ticket size of homes sold increasing by 37% — from ₹84 lakh to ₹1.15 crore — the total number of units sold fell from nearly 30,000 to just over 27,800.
The 37% surge in home prices reflects the growing demand for luxury properties in the city. However, this increase has not been sufficient to counterbalance the drop in sales volume, suggesting that the market may be entering a phase of recalibration. The total sales value in Hyderabad rose from ₹25,059 crore to ₹31,993 crore, but this was unable to fully offset the decline in volume, indicating that while buyers are spending more per property, fewer transactions are taking place. This trend may signal a shift in buyer sentiment, with more people opting for high-value properties while reducing the number of purchases. In stark contrast, other major Indian cities such as Bengaluru and NCR have maintained strong momentum, particularly in the luxury segment. Bengaluru recorded a 44% rise in the average ticket size, while NCR saw a staggering 56% increase. These cities continue to drive growth in the high-value property market, whereas Hyderabad, despite witnessing price growth, has struggled to match the pace of these more aggressive markets.
This slowdown in Hyderabad’s market also comes amid modest growth in other real estate hubs like Pune and Chennai, where the increase in ticket size was more restrained compared to Bengaluru and NCR. The trend suggests that while the luxury market continues to show growth in certain cities, Hyderabad’s market may require a more targeted approach to sustain long-term growth. While the luxury segment in Hyderabad remains competitive, the city’s overall market may be undergoing a transition. With fewer transactions, stakeholders will need to carefully monitor the changing dynamics of buyer preferences and adapt to market shifts. The growth in property values is not necessarily indicative of sustained market strength, and a more balanced growth strategy may be key to ensuring that Hyderabad remains a prime real estate hub in the future.
