Hyderabad’s residential real estate market, once a shining star in India’s property landscape, is now experiencing a wave of uncertainty. With sales and new project launches showing mixed results, concerns are mounting among developers, builders, and homebuyers alike. The recent trends in the market, despite the city registering a 34% year-on-year increase in property sales from January to September, reveal troubling signs. Specifically, sales in September 2024 witnessed a sharp 22% drop compared to the same month in 2023.
According to data released by Knight Frank, home sales registrations fell from 6,304 in September 2023 to 4,903 in September 2024, with the total registration value declining from Rs. 3,459 crore to Rs. 2,820 crore. While this drop is being partly attributed to the Hindu observance of Shradh/Pitra Paksha—traditionally considered inauspicious for buying homes—the figures have caused some to speculate about a larger shift in market dynamics. However, the long-term performance remains promising, as the city’s year-to-date figures show a 34% increase in home sales value and a 13% rise in the number of registered units. In addition, the trend towards premiumisation has become increasingly evident in Hyderabad’s market. Homes priced above Rs. 1 crore have accounted for 14% of the city’s sales in the first nine months of 2024, up from 9% in 2023. Meanwhile, the majority of the registered properties remain in the 1,000-2,000 square feet range, reflecting the city’s middle-class and upper-middle-class housing demand. At the district level, Medchal-Malkajgiri continues to lead registrations with 42% of the total market share.
From a sustainability standpoint, the slowdown presents both challenges and opportunities. While developers must adapt to the changing preferences of buyers, the demand for premium and eco-friendly housing could encourage a shift towards more sustainable building practices. This is essential for a rapidly growing city like Hyderabad, where unchecked urbanisation can strain resources and infrastructure. Balancing affordability with sustainability will be key for the city’s real estate future. Moreover, from a civic perspective, the city’s urban planners must address concerns around infrastructure to ensure that Hyderabad remains attractive to both domestic and international investors. As more global companies set up base in the city, urban development will need to align with sustainable growth models to prevent future real estate bubbles.
