House sales in Hyderabad see 42% dip, higest among metros

Hyderabad: The city's real estate market witnessed a sharp decline in both sales and new launches during the July-Sept quarter, according to a recent industry report.
According to PropEquity, a data analytics firm, new launches in Hyderabad declined by 54% between July and Sept, while sales witnessed a drop by 42%, which is the highest among major metros in the country.
In fact, the report states that while the city saw 25,370 new housing launches between July and Sept 2023, these figures were limited to 11,601 this year. A similar trend was seen in sales. While 20,658 units were sold in the July-Sept quarter last year, this year's figure plummeted to 12,082 units.
Industry experts attributed this property slump to several reasons, including oversupply, rising prices and the recent HYDRAA demolitions.
"There is a huge oversupply in the market and this has led to a slowdown in business. Despite being relatively cheaper than other metros, the prices of houses in Hyderabad have suddenly gone up considerably. Now, no part of the city has anything to offer for less than Rs 1 crore to Rs 1.25 crore. For instance, residential prices in the western part cost a minimum of Rs10,000 per sq ft. That's not a budget that suits a large section of buyers," says GV Rao, president, Telangana Developers Association, underlining the growing gap between supply and demand.
"Many buyers consider it inauspicious to buy houses during June and Aug, leading to a decline in property registrations. This sentiment, coupled with the start of the academic year, results in potential buyers prioritising their children's education over property investment. Despite the lull in the real estate market during these months, sales are expected to pick up between Oct and Dec, coinciding with the onset of the festive season, a time when many people consider it opportune to make purchases, including real estate," said V Rajashekhar Reddy, President, CREDAI Hyderabad.
On the other hand, some industry players say that the real estate market in Hyderabad has been facing challenges since June, when HYDRAA started demolishing encroachments. "This action has created a sense of apprehension among property buyers, making them reluctant to invest in the market. Moreover, the process of obtaining building permissions has become stringent, which has led to a decline in the number of new project launches," said N Ramachandra Reddy, executive member, CREDAI National and also former chairman, CREDAI Telangana.