Hyderabad: Once a thriving real estate hub, Hyderabad’s residential market is experiencing a significant downturn in both sales and new launches, according to the latest Real Insight Residential Report by PropTiger.com. The report, which analyzed the top eight residential markets in India for the July-September quarter of 2024, revealed a steep decline in Hyderabad’s real estate performance.
The city saw a 19% year-on-year (YoY) drop in sales compared to the same period last year. In Q3 2023, 14,191 units were sold, which decreased to 11,564 units in Q3 2024. New project launches in Hyderabad also plummeted, with a 58% YoY decline. The report highlighted that only 8,546 new units were launched in Q3 2024, compared to 20,481 units in the same quarter last year.
The report noted that while new residential unit launches across the top eight cities saw a 25% drop overall, Hyderabad experienced the sharpest decline. In contrast, Delhi NCR witnessed a 76% surge in new launches. Mumbai saw a 13% drop, while Pune experienced a smaller 3% contraction in new supply.
Sales trends across the country showed mixed results. Delhi NCR recorded a 29% year-on-year (YoY) increase in sales, while Mumbai, despite leading in volume, saw a slight 1% decline. Bengaluru experienced an 11% YoY drop, and Ahmedabad recorded a 9% YoY decrease in sales.
The report attributed the overall market slowdown to a sharp rise in home prices, with a nearly 20% increase across the top eight cities. This rise impacted affordability, leading to a 5% YoY drop in sales.
Despite the current slowdown, Vikas Wadhawan, CFO of REA India and Business Head of PropTiger.com, expressed optimism for the future. With the festive season underway, he anticipates renewed buyer interest and increased sales activity, potentially stabilizing the market for end-users.
