Hyderabad Residential Market Faces Downturn in Q2 2024
The residential real estate sector in Hyderabad experienced a notable decline during the second quarter of 2024. According to the latest report from PropEquity, a real estate data analytics firm, both sales and new launches saw a sharp decrease in the April-June period.
Significant Sales Drop
Among the nine major cities—Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Navi Mumbai, and Thane—Hyderabad recorded the most significant quarter-on-quarter (QoQ) decline in housing sales, with a substantial 36 percent decrease.
In Q2 2024, sales totaled 15,016 units, a considerable drop from the 23,595 units sold in Q1 2024. The city also witnessed a notable decrease in new residential launches, with 11,603 units launched, reflecting a 19% decrease from the previous quarter.
Year-over-Year Decline
Hyderabad also experienced a 36% decline in new residential launches compared to the same period last year (Q2 2023), falling from 18,232 units to 11,603 units in Q2 2024. Furthermore, sales in Hyderabad dropped by 20% year-over-year (YoY) in Q2 2023, decreasing from 18,757 units to 15,016 units in Q2 2024.
Contrasting Trends in Other Cities
In contrast, other major cities displayed positive YoY growth rates for residential launches, with Delhi, Bengaluru, and Chennai recording increases of 95%, 67%, and 21%, respectively. Pune was the only city with a larger decline than Hyderabad, experiencing a 47% decrease. While Mumbai and Kolkata observed YoY increases in housing sales, Hyderabad faced a 20% decline, and Pune saw a 15% increase.
Expert Insights
According to PropEquity CEO & MD Samir Jasuja, "The election quarter and the normally slow Q2 are the main causes of the slight decline in new launch supply across top Tier 1 cities. The residential real estate market is still strong and in gold and gold health following COVID, as evidenced by the higher absorption than new supply."
Overall Market Performance
Across the nine major cities, there was an 18% decrease in sales, from 146,147 units sold in the previous quarter to 1,19,901 units sold in Q2 2024. Year-over-year, there was a slight decrease in housing sales of 2%. The number of newly constructed homes decreased by 7% every quarter, from 1,04,391 units in Q1 2024 to 97,331 units in Q2 2024.