Hyderabad Real Estate Sees a Drop in Sales
Hyderabad’s real estate market, once known for its resilience during challenges like the global financial crisis and the COVID-19 pandemic, is now facing setbacks. According to a report by Knight Frank India, property sales in the city declined by 7% year-on-year (YoY) in 2024.
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Decline in Property Sales
In November 2024, home sales dropped to 5,516 units compared to 6,268 units in November 2023, marking a 12% YoY decrease. The total value of home sales also fell by 3%, from ₹3,741 crore in November 2023 to ₹3,495 crore in November 2024.
The monthly trend adds to the concern. Property registrations in November 2024 showed a 6% month-on-month (MoM) decline. Since July 2024, the city has consistently recorded decreases in both unit registrations and sales values, suggesting ongoing pressure on the market.
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Premium Homes in Demand
Amid the overall slowdown, homes priced at ₹1 crore and above have shown resilience. These high-value properties made up 14% of total registrations in November 2024, up from 12% in November 2023. This indicates a growing interest among buyers in premium homes.
In terms of geographic contribution, Medchal-Malkajgiri and Rangareddy districts led the way, accounting for 42% and 41% of registrations, respectively. Hyderabad district contributed 17%.
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Expert Insights
Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted that while overall registrations in Hyderabad have slowed, demand for premium homes remains strong. He highlighted that high-value homes saw a 3% YoY increase in November 2024, reflecting buyer confidence in this segment.
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Registration Trends
Year-on-Year (YoY):
– November 2023: 6,268 units
– November 2024: 5,516 units
Month-on-Month (MoM):
– July 2024: 8,781 units
– August 2024: 6,439 units
– September 2024: 4,903 units
– October 2024: 5,894 units
– November 2024: 5,516 units
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Sales Values Decline
Year-on-Year (YoY):
– November 2023: ₹3,741 crore
– November 2024: ₹3,495 crore
Month-on-Month (MoM):
– July 2024: ₹5,285 crore
– August 2024: ₹4,043 crore
– September 2024: ₹2,820 crore
– October 2024: ₹3,617 crore
– November 2024: ₹3,495 crore
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The Road Ahead
Hyderabad’s real estate sector has long been a key driver of the city’s economy. However, the current decline in property sales signals a need for action. Developers and stakeholders must address buyer concerns and adapt to changing preferences. The rising demand for premium homes presents an opportunity to stabilize the market and drive growth in the coming months.
