Hyderabad real estate juggernaut losing steam as sales drop drastically

Hyderabad’s property market that flourished over the decade, growing leaps and bounds and encompassing wide swaths of hitherto untapped acreages on the city outskirts and beyond, is now in a quandary

Hyderabad: A painstakingly built real estate juggernaut appears to be losing its steam and threatening to go off the rails.

Hyderabad’s property market that flourished over the decade, growing leaps and bounds and encompassing wide swaths of hitherto untapped acreages on the city outskirts and beyond, is now in a quandary.

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Even as property seekers choose a wait-and-watch approach, the sales have started to drop, enquiries dwindle, unsold inventory goes up and new launches clearly seem to be on hold.

Offering a perspective on the prevailing situation in Hyderabad is the study of top seven cities released by Anarock on Thursday. According to Anarock data, Hyderabad in the year 2024 registered a decline of 5 per cent in unit sales compared to year 2023 and also 24 per cent drop in new supplies during the same time period.

The city-wise housing sales shows that a total of 61,715 units were sold in Hyderabad last year and the numbers have dropped down to 58,540 units – a 5 per cent year-on-year decline. During this period, Mumbai Metropolitan Region (MMR) and Bengaluru witnessed an annual rise, albeit marginal.

In the city-wise new launches overview, the Anarock study has Hyderabad recording a decline of 24 per cent with only 58,335 units this year as against launch of 76,345 new units last year. This drop in new launches paints a grim picture for Hyderabad since during the same period, National Capital Region logged in a rise of 44 per cent and Bengaluru recorded 30 per cent rise.

According to the Anarock report, strong homebuyer demand and hardening property prices coupled with the general and State elections dented India’s residential growth momentum in 2024. Its data indicates that housing sales in the top 7 cities witnessed a marginal 4 per cent decline in 2024 with approximately 4,59,650 units in 2024 against 4,76,530 units in 2023.

Anuj Puri, Chairman – Anarock Group, says, “Average residential prices hikes will stabilise in the coming year, though there will be steady growth amid increased input costs and high demand. 2025 will also see generous new supply infusions by listed developers, who have significant inventory lined up.”

Among budget categories, luxury housing demand and new supply increased exponentially in 2024 as homebuyers demand continued the post-pandemic trend of bigger, better homes by branded developers. The new luxury supply addition across the top 7 cities rose by 24 per cent in 2024 against 2023.