Hyderabad Real Estate Faces Setback: Property Sales Drop 7% Year-on-Year in 2024

Hyderabad's real estate market, long praised for its resilience during challenges like the global financial crisis and the COVID-19 pandemic, is now showing signs of strain. Property sales in the city have witnessed a 7% year-on-year (YoY) decline, according to the latest Knight Frank India report released on Tuesday.

A Market Under Pressure

Home sales in Hyderabad dropped to 5,516 units in November 2024, compared to 6,268 units in November 2023—a decline of 12% YoY. 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 is equally concerning, with property registrations showing a 6% month-on-month (MoM) dip. The city recorded consistent declines in unit registrations and sales values since July 2024, signaling sustained pressure on the market.

High-Value Homes Show Resilience

Despite the downturn, the demand for premium homes priced at ₹1 crore and above has increased, accounting for 14% of total registrations in November 2024, up from 12% the previous year. This indicates a growing preference among buyers for higher-value properties.

Medchal-Malkajgiri and Rangareddy districts dominated the registrations, contributing 42% and 41% respectively, while Hyderabad district accounted for 17%.

Insights from Industry Leaders

Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented, "Overall, property registrations in Hyderabad moderated in November 2024, but the demand for high-value homes remains robust, registering a 3% YoY increase."

    Registration Trends in 2024

• Units Registered (YoY):
• November 2023: 6,268
• November 2024: 5,516

    Units Registered (MoM):

• July 2024: 8,781
• August 2024: 6,439
• September 2024: 4,903
• October 2024: 5,894
• November 2024: 5,516

Registration Values (₹ Crore):

    YoY:

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

    MoM:

• July 2024: 5,285
• August 2024: 4,043
• September 2024: 2,820
• October 2024: 3,617
• November 2024: 3,495

Looking Ahead

While Hyderabad's real estate market has been a key contributor to its economic growth, the current decline in property sales highlights a need for strategic measures to address buyer concerns and boost market confidence. Developers and stakeholders must adapt to evolving buyer preferences, especially the rising demand for high-value homes, to stabilize and rejuvenate the market.