Hyderabad’s real estate market, once a beacon of growth in India, has recorded its lowest property registrations in three years during January 2025. Despite aggressive government efforts to revive the sector through infrastructure projects and policy incentives, Telangana’s housing market remains sluggish, with a notable decline in affordable housing demand and stagnant overall growth.
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Telangana Real Estate Continues Downward Trend in Early 2025
Key Highlights of the Decline
- Residential Registrations Drop: Only 5,444 residential properties were registered in January 2025, down from 5,454 in January 2024—a marginal but symbolic decline reflecting buyer caution.
- District-Level Breakdown:
- Medchal-Malkajgiri: 45% of total registrations.
- Rangareddy: 41% share.
- Hyderabad District: Just 14%, the lowest among major regions.
- Luxury vs. Affordable Housing Divide:
- Properties priced above ₹1 crore surged by 12% YoY.
- Sub-₹50 lakh segment fell by 3%, signaling reduced affordability.
Government Efforts Fail to Reverse the Slide
The Telangana government has rolled out multiple schemes to stimulate growth, including:
- SWAMIH Fund Revival: ₹15,000 crore allocated to complete stalled affordable housing projects.
- Future City Project: A tech-driven urban hub near Hyderabad aimed at attracting global investments.
- Infrastructure Upgrades: Expansion of metro rail, Outer Ring Road, and Mission Bhagiratha for water supply.
Despite these measures, rising property costs, high loan interest rates, and regulatory delays under RERA have deterred buyers.
Also Read: Hyderabad’s Battle Against Noise Pollution: Traffic Police Struggle to Curb Modified Silencer Menace
What’s Driving the Luxury Housing Boom?
While the broader market falters, demand for premium properties (1,000–2,000 sq.ft.) dominates 69% of registrations. Experts attribute this shift to:
- Economic Polarization: High-income buyers capitalize on stable investments, while middle-class demand wanes.
- Lifestyle Aspirations: Preference for amenities like smart home tech, green spaces, and larger living areas.
- Investor Confidence: Luxury properties in areas like Gachibowli and HITEC City retain value despite market volatility.
Challenges Ahead for Telangana’s Real Estate
- Affordability Crisis: Stagnant wages and rising home loan rates (up 2% since 2023) squeeze middle-class buyers.
- Oversupply in Mid-Segment: Developers struggle to sell inventory in the ₹50 lakh–₹1 crore range, despite a 3% YoY rise.
- Policy Bottlenecks: Delays in project approvals and RERA compliance hinder new launches.
Market Outlook for 2025
Industry analysts predict:
- Short-Term Stagnation: Registrations may remain flat until interest rates ease or buyer sentiment improves.
- Long-Term Potential: Hyderabad’s status as an IT hub and infrastructure upgrades could stabilize the market post-2025.
Telangana’s real estate sector stands at a crossroads. While luxury housing thrives, the affordability gap threatens broader market recovery. For Hyderabad to regain momentum, policymakers must address regulatory hurdles and prioritize inclusive growth strategies.
Stay updated with Munsif for in-depth analysis of Telangana’s economic trends.
