Hyderabad real estate sales decline by 42% in July-September quarter

HYDERABAD: Hyderabad's real estate sector has witnessed the sharpest decline in housing sales among nine major cities in India during the July-September quarter, according to a report by PropEquity, a leading real estate data analytics firm. The city recorded a 42% drop in sales, the highest across the country, followed by Bengaluru with a 26% decline and Kolkata with 23%.

As per the report, Hyderabad is expected to see housing sales of 12,082 units during this quarter, compared to 20,658 units sold during the same period last year. This marks a significant reversal for the city, which had previously surpassed major markets like Mumbai and Bengaluru in sales growth over the last decade. Overall, the report projects a total of 1,04,393 housing units sold across the nine cities, representing an 18% decrease from the 1,26,848 units sold in the same period last year.

Industry experts have attributed the sharp decline in Hyderabad to concerns over illegal layouts and construction projects, especially around lakes and water bodies. This has resulted in a lack of buyer interest, with realtors and businesses in related sectors expressing frustration over the slowdown. The recent demolitions carried out by the Hyderabad Disaster Response and Assets Monitoring and Protection Agency (HYDRAA) increased the fears surrounding unauthorised developments and dampened the market, with new buyers hesitating to invest.

The usual festive season boost in housing sales, typically seen around Dussehra and Diwali, is also missing this year, further raising concerns about the future of Hyderabad's real estate market. Some experts worry that if the current trend continues, the sector may face conditions similar to those experienced during the COVID-19 crisis.