Hyderabad Real Estate Market Sees 25 Percent Drop in Housing Sales

Hyderabad's housing market saw a significant 25% decline in sales in 2024, the largest drop among major cities in India. Despite this, other cities like Navi Mumbai and Delhi-NCR saw growth. In Navi Mumbai, housing sales surged by 16%, reaching 33,870 units, while Delhi-NCR saw a 5% increase, with 43,923 units sold. Bengaluru’s market experienced a 9% drop in property values, totaling 60,506 units sold, and Chennai faced an 11% decrease, with 19,212 units sold.

In western India, Mumbai’s housing sales dropped by 6% to 50,140 units, Pune experienced a 13% decline, with 92,643 units sold, and Thane saw a 5% drop, totaling 90,288 units. Kolkata also saw a slight 1% decrease, with 18,595 apartments sold in 2024.

The decline in Hyderabad’s housing market is attributed to the demolition of encroachments by the HYDRAA, which began in June 2024. This action has led to uncertainty among property buyers, making them hesitant to invest. Experts suggest that these changes have impacted market confidence.

While many cities saw a decline in housing sales, Delhi-NCR stood out with both increased sales and availability, along with new supply in several of its cities. Delhi-NCR recorded the highest growth, whereas Hyderabad had the largest decrease.

The decrease in overall housing sales is partly due to a high base effect from 2023, which was a particularly strong year for the housing market. Despite the drop, experts indicate that the fundamentals of India’s real estate market remain healthy, with steady rates of supply and demand.