Hyderabad: Hyderabad’s real estate market is showing signs of a slowdown in 2024, with unit sales dipping significantly during the first half of the fiscal year. According to recent data from ANAROCK, the city experienced a nearly 7% decline in the number of homes sold from April to September 2024, compared to the same period in 2023.
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Decline in Unit Sales Despite Rising Ticket Sizes
While Hyderabad’s luxury real estate segment has seen a notable rise in the average ticket size of homes sold — increasing by 37% from Rs 84 lakh to Rs 1.15 crore — the total number of units sold fell from approximately 30,000 to just over 27,800. This decline in sales volume raises questions about the long-term sustainability of the once-booming luxury property market in the city.
Also Read: Hyderabad: A Decade of Transformation, Outpacing Major Indian Cities in Growth
A Comparative Analysis with Other Cities
Hyderabad’s performance stands in contrast to other major Indian cities, which continue to see robust growth in the real estate sector. Bengaluru, for example, recorded a 44% increase in the average ticket size of homes sold during the same period, while the National Capital Region (NCR) saw a staggering 56% rise. Despite the increase in sales value — from Rs 25,059 crore in H1 FY24 to Rs 31,993 crore in H1 FY25 — Hyderabad’s growth in total sales value has not fully compensated for the fall in unit sales.
In comparison, other cities such as Pune and Chennai have also witnessed a growth in the average ticket size of properties sold, though the increase has been more modest than in Bengaluru and NCR.
Real Estate Trends in India’s Top Markets
Below is a comparative snapshot of the performance of key real estate markets in India:
| City | H1 FY24 (Units Sold) | H1 FY25 (Units Sold) | H1 FY24 (Sales Value) | H1 FY25 (Sales Value) |
|---|---|---|---|---|
| Bengaluru | 31,440 units | 31,380 units | ₹26,274 cr | ₹37,863 cr |
| Hyderabad | 29,940 units | 27,820 units | ₹25,059 cr | ₹31,993 cr |
| Chennai | 10,435 units | 9,530 units | ₹7,516 cr | ₹9,015 cr |
| Pune | 43,565 units | 40,190 units | ₹28,590 cr | ₹34,033 cr |
| Kolkata | 11,095 units | 8,620 units | ₹5,851 cr | ₹5,265 cr |
| NCR | 32,315 units | 32,125 units | ₹30,154 cr | ₹46,611 cr |
| MMR | 76,410 units | 77,735 units | ₹1,12,356 cr | ₹1,14,529 cr |
The Road Ahead for Hyderabad Real Estate
While Hyderabad continues to see an increase in the total value of properties sold, it is clear that the city’s real estate market is entering a cooling phase. Factors contributing to this slowdown could include changing market dynamics, affordability concerns, and a shift in buyer preferences.
Hyderabad’s luxury real estate sector, which previously drove much of the market growth, faces challenges, with slower sales volumes despite the rising ticket sizes. Developers and buyers alike are bracing for the next phase in the market’s evolution, as the city adjusts to a new market reality.
As other markets such as NCR and Bengaluru maintain their growth, Hyderabad will need to reassess strategies to keep pace with evolving trends in the luxury segment. For now, the city’s real estate performance lags behind its peers, signaling a potential shift in buyer behavior and a cautious outlook for the rest of 2024.
Conclusion
In summary, Hyderabad’s real estate market has cooled off in 2024, with a noticeable dip in unit sales despite growth in the average ticket size. This slowdown, in contrast to the booming markets in Bengaluru and NCR, could mark a turning point in the city’s property sector. Real estate stakeholders will need to adapt to these shifts in demand and pricing strategies as they navigate the changing landscape.
