After a decade of strong performance, Hyderabad’s residential real estate sector appears to be facing challenges, raising concerns among developers, builders, and consumers.
Recent data highlights a drop in property sales for September 2024, even as the market showed growth overall this year.
A report from Knight Frank Research revealed a 34% year-on-year increase in home sales during January-September 2024, but the month of September saw a 22% decline in registrations compared to last year. Only 4,903 homes were registered in September 2024, compared to 6,304 in the same month of 2023.
The report attributes the decline to the Shradh/Pitra Paksha period, traditionally considered inauspicious for property transactions.
However, Hyderabad recorded Rs. 36,461 crore worth of home sales during the first nine months of 2024, reflecting strong demand. Premium homes priced above Rs.1 crore also saw a rise in sales, increasing from 9% to 14% this year.
In September 2024, majority of the registered properties in Hyderabad were concentrated in the range of 1,000 to 2,000 sf) comprising of 68 per cent of all registrations.
At a district-level, Medchal-Malkajgiri led property registrations with 42 per cent of the market, up from 45 per cent in September 2023.
Rangareddy and Hyderabad district accounted for 39 per cent and 19 per cent of the total registrations respectively.