Market Registrations Show Concerning Trends
Hyderabad's real estate market has seen significant turbulence in 2025, with property registrations falling across several months. In April 2025, residential property registrations dropped by 12% compared to the previous year, while in June 2025, they saw a 9% decline. Only 6,391 units were registered compared to 7,056 units in the same period last year.
IT Sector Impact on Buyer Sentiment
The city's reliance on the technology sector has created ripple effects throughout the housing market. As IT companies cut costs, potential homebuyers in the ₹70 lakh to ₹1.5 crore range are taking a more cautious approach. Now, buyers are not showing interest in purchasing 2BHK and 3BHK apartments.
Unsold Inventory Challenges
Unlike other major cities, Hyderabad has seen an increase in unsold affordable housing units. The city recorded a 9% rise in unsold units, going from 1,660 units in Q1 2024 to 1,815 units in Q1 2025. This buildup particularly affects the mid-segment housing market.
Premium Segment Resilience
Luxury properties above ₹1 crore continue to show resilience. These high-end properties accounted for 21% of registrations but represented over half of the total transaction value in June 2025. Premium home registrations grew by 2% year-on-year, indicating that affluent buyers remain confident despite broader market uncertainties.
Builder Response and Market Adaptation
Developers are adjusting their pricing strategies to meet changing demand patterns. Payment delays are becoming more common as buyers exercise more caution. The market dynamics suggest a temporary slowdown rather than a fundamental shift, with builders focusing on completing existing projects while carefully planning new launches.