Hyderabad real estate stumbles; Property sales drop by 7% YoY

Hyderabad real estate, which exhibited a rare resilience while withstanding the stress and strain of factors such as global financial crisis and Covid pandemic that left many major cities reeling, now seems to be stumbling badly

Hyderabad: Extremely sensitive are the real estate sentiments. In a city’s march to progress, real estate plays a key role and thus, the sector need to be nurtured and nourished with care.

Hyderabad real estate, which exhibited a rare resilience while withstanding the stress and strain of factors such as global financial crisis and Covid pandemic that left many major cities reeling, now seems to be stumbling badly.

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The reality of realty in the city is increasingly palpable with property seekers caught in a Catch-22 situation and their dilemmas worrying the builders and developers about the fate of their projects. Assessments by leading property agencies over the last few months have been underscoring the emerging real estate scenario of Hyderabad.

In its latest assessment released on Tuesday, Knight Frank India documents a 7% year-on-year (Y-o-Y) and 3% month-on-month (M-o-M) decline in home sales in Hyderabad. Also, during the same period, residential unit registrations were down by 12% Y-o-Y and 6% M-o-M.

The Knight Frank India assessment documents that as against 6,268 units of November 2023, this year November had registrations of only 5,516 units, a drop of 12 per cent. At the same time, November 2024 recorded home sales worth Rs 3,495 crore as against Rs 3,741 crore in November 2023, a drop of 3 per cent.

However, according to the assessment, despite the overall decline in registrations, there has been an increase in the registration of high-value homes in Hyderabad residential market that encompasses four districts – Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

In Hyderabad, properties priced under Rs 50 lakh typically account for the majority of registrations. However, a notable premiumisation trend has emerged in recent months and the share of homes priced at Rs 1 crore and above rose from 12% to 14% in November 2024 as compared to 2023, highlighting a shift in buyer preferences toward higher-value properties.

At the district level, Medchal-Malkajgiri accounted for 42% of property registrations, closely followed by Rangareddy at 41% while Hyderabad district contributed 17% of total registrations.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “Overall, property registrations in Hyderabad moderated in November 2024, but demand for high-value homes remains robust, registering a 3% Y-o-Y increase.

 

Registrations in Hyderabd:
No. of units (Y-o-Y):

November 2023: 6,268

November 2024: 5,516

No. of units (M-o-M):

July 2024: 8,781

August 2024: 6,439

September 2024: 4,903

October 2024: 5,894

November 2024: 5,516

 

Registration Value Split (Y-o-Y) (Rs. crore):

November 2023: 3,741
November 2024: 3,495

Registration Value Split (M-o-M) (Rs. crore):
July 2024: 5,285

August 2024: 4,043

September 2024: 2,820

October 2024: 3,617

November 2024: 3,495

(Source: Knight Frank Research, Telangana Registration and Stamps Department)