New trend in Hyderabad real estate market
The Hyderabad construction sector shows no signs of slowing down. Indeed, the Greater Hyderabad area is experiencing a noticeable increase in home sales each year. The real estate market in Hyderabad has seen a remarkable 29% annual growth in home sales. Compared to five years ago, the Hyderabad real estate market has significantly improved. Compared to 2019, the current year 2024 has witnessed a 148% increase in residential property sales. A report by CREDAI Hyderabad and CBRE detailing residential sales in Hyderabad from 2019 to 2024 reveals these figures. The report also highlights a staggering 760% increase in the sales of homes valued above 5 crores.
In the past five years, the Hyderabad construction sector has undergone significant changes. There is a clear increase in both home sales and home prices. Five years ago, the value of residential sales in Greater Hyderabad was recorded at Rs 34,044 crores, whereas last year, in 2023, the value of home sales reached Rs 1,15,759 crores. In the first six months of the current year 2024, from January to June, home sales in Hyderabad have hit a five-year high. However, according to a report by CREDAI Hyderabad and CBRE, there are currently over one lakh completed homes ready for sale in Hyderabad.
In the first half of 2024, from January to June, construction began on 21,936 units. Despite this, there are still 1,03,316 unsold residential units in Hyderabad, as reported by CREDAI Hyderabad and CBRE. As a result, it appears that construction companies have scaled back on new construction projects this year. However, builders note that the inventory turnover period for residential sales has decreased from 1.68 years in 2020 to 1.33 years now, which is a positive development. Construction companies estimate that more than half of the inventory homes will be sold by the end of this year.
In Hyderabad, the highest number of residential sales are being recorded in the North-West region. In the first six months of this year, 2024, from January to June, 62% of the sales occurred in the North-West, amounting to Rs 36,276 crores. During the same period, 4,796 homes were sold in the North-East, 4,957 in the South-West, and 2,998 in the South-East. Significant changes have also occurred in home prices in the Hyderabad real estate market. In 2019, the average home value was Rs 1.1 crores, which has now increased by 44%, bringing the average home price to Rs 1.5 crores.
Currently, in the year 2024, homes priced between Rs 1 crore and Rs 2 crores are seeing the highest sales. Sales of homes valued between Rs 5 crores and Rs 10 crores have seen a substantial 449% increase compared to five years ago. Additionally, sales of homes worth more than Rs 10 crores have surged by 63 times.
Residential Sales and Values in Hyderabad Over the Past Five Years:
- In 2019, 30,316 homes were sold with a total value of Rs 34,044 crores.
- In 2020, 29,611 homes were sold for Rs 33,084 crores. Sales decreased due to the impact of COVID-19.
- In 2021, 50,884 homes were sold with a total value of Rs 58,818 crores.
- In 2022, 67,276 homes were sold, amounting to Rs 92,359 crores.
- In the previous year, 2023, 74,991 homes were sold, with a total value of Rs 1,15,759 crores.
- In the current year, 2024, from January to June, 38,660 homes were sold with a total value of Rs 58,841 crores.
