While other cities like NCR and Bengaluru continue to thrive, Hyderabad’s real estate market now faces the challenge of regaining its momentum amidst fierce competition in India’s top realty markets.
Hyderabad, November 20 , 2024: Hyderabad’s real estate market is experiencing a slowdown, with a significant decline in unit sales during the first half of FY25, as revealed by the latest ANAROCK data. This trend reflects broader changes across India’s top real estate markets, though some cities have managed to maintain growth momentum.
Hyderabad’s Decline in Sales
Between April and September 2024, Hyderabad recorded a 7% drop in the number of units sold, from 29,940 units in H1 FY24 to 27,820 units in H1 FY25. Despite this, the total value of sales increased significantly, rising from ₹25,059 crore to ₹31,993 crore due to a 37% jump in the average ticket size of homes sold, from ₹84 lakh to ₹1.15 crore.
However, the overall dip in sales volume suggests a cooling phase for Hyderabad’s luxury real estate sector, previously known for its booming growth.
Comparison with Other Cities
A detailed analysis of India’s top real estate markets reveals mixed trends:
- Bengaluru maintained stability with sales holding at approximately 31,400 units, while the sales value surged from ₹26,274 crore in H1 FY24 to ₹37,863 crore in H1 FY25.
- NCR reported steady sales, with units sold slightly dropping from 32,315 to 32,125, but the total value rose dramatically from ₹30,154 crore to ₹46,611 crore.
- MMR (Mumbai Metropolitan Region) led the markets with a small increase in units sold, from 76,410 to 77,735, and a rise in total value from ₹1,12,356 crore to ₹1,14,529 crore.
- Chennai, Pune, and Kolkata witnessed declines in sales volumes but varying increases or stagnations in total sales value.
Detailed Comparison of Sales Across Markets
| City | H1 FY24 Units (₹ in Cr) | H1 FY25 Units (₹ in Cr) |
|---|---|---|
| Bengaluru | 31,440 (₹26,274 cr) | 31,380 (₹37,863 cr) |
| Hyderabad | 29,940 (₹25,059 cr) | 27,820 (₹31,993 cr) |
| Chennai | 10,435 (₹7,516 cr) | 9,530 (₹9,015 cr) |
| Pune | 43,565 (₹28,590 cr) | 40,190 (₹34,033 cr) |
| Kolkata | 11,095 (₹5,851 cr) | 8,620 (₹5,265 cr) |
| NCR | 32,315 (₹30,154 cr) | 32,125 (₹46,611 cr) |
| MMR | 76,410 (₹1,12,356 cr) | 77,735 (₹1,14,529 cr) |
Factors Behind Hyderabad’s Slowdown
Several reasons have contributed to Hyderabad’s decline in sales:
- Government Policies: Inconsistent planning and regulatory hurdles have created uncertainty for buyers and developers.
- HYDRAA Enforcement Actions: Strict crackdowns and demolitions have caused apprehension in the real estate market.
- Economic Factors: Rising construction costs and inflation have impacted affordability.
- Market Saturation: The rapid growth in Hyderabad’s luxury segment over recent years may have reached a saturation point.
Future Outlook
Experts believe Hyderabad’s real estate market still holds potential for growth, but the government must implement measures to rebuild confidence among investors and developers. This includes simplifying regulations, enhancing transparency, and ensuring stability in the market.
While other cities like NCR and Bengaluru continue to thrive, Hyderabad’s real estate market now faces the challenge of regaining its momentum amidst fierce competition in India’s top realty markets.
