Moderate growth in Hyderabad’s real estate despite HYDRAA demolitions; New data reveals

Hyderabad: Despite growing concerns and misconceptions about the future of Hyderabad’s real estate market following the Hyderabad Disaster Response and Asset Protection Agency (HYDRAA) demolitions, recent data from Knight Frank and Telangana Registration and Stamps shows that the sector has maintained stability in 2024, with signs of moderate growth.

There has been a noticeable slowdown in the market following the demolition drive, with many speculating a major impact on property sales. However, the latest figures reveal that while the market has faced challenges, it has not come to a halt. In October 2024, home registrations in Hyderabad increased by just 2% year-on-year, signaling a modest recovery after a significant drop in September. The total value of registered properties also saw a 14% increase, reaching ₹3,617 crore.

Hyderabad’s real estate market had a strong start to 2024, particularly in July, when home registrations soared by 58% year-on-year, driven by pent-up demand and favorable market conditions. However, following the high in mid-year, the market experienced a slowdown in September, with a 22% decline in registrations, attributed to seasonal factors like the Shradh/Pitra Paksha period, typically seen as an inauspicious time for property transactions.

One of the more significant trends in the market this year has been a shift towards premium properties, with demand for homes priced above ₹1 crore rising by 4%. This trend shows a growing appetite for high-end, long-term investments, as opposed to the previous dominance of mid-range properties priced around ₹50 lakh.

While the demolitions under the HYDRAA initiative have caused uncertainty, experts believe that the Hyderabad real estate market remains resilient. The trend towards luxury homes and a steady increase in transaction values suggest that the premium property sector continues to perform well. The market has also showed its ability to recover after seasonal dips, and with steady demand for high-end properties, it is expected that the market will remain stable in the months ahead.

Key October 2024 Statistics:

• Home Registrations (Volume): 5,894 units (up 2% YoY)
• Transaction Value: ₹3,617 crore (up 14% YoY)
• Shift in Buyer Preferences: Increased demand for properties priced ₹1 crore and above.

Despite the challenges, including the ongoing demolitions and seasonal slowdowns, Hyderabad’s real estate market continues to show signs of growth, especially in the high-value property segment.

Lot of chat about #Hyderabad’s ‘slowing’ real estate. There is growing apprehension among people in the backdrop of #HYDRAA demolitions. But, how much is there a slowdown in #Hyderabad’s real estate? Let’s see. #Hyderabad home registrations (by volume/units) increased only 2%… pic.twitter.com/zBrmbpFqyN

— Rishika Sadam (@RishikaSadam) November 22, 2024