Alina
Hyderabad Real Estate Prices Soar High
Hyderabad’s Residential Property Prices Soar in 2024
In 2024, the real estate market in Hyderabad saw a significant surge in residential property prices. According to ANAROCK Research, the city witnessed a sharp increase in housing prices, making it one of the most expensive real estate markets in India. While other top-tier cities like NCR, MMR, Bangalore, and Pune also experienced price hikes, residential property prices in Hyderabad stood out with the highest jump.
32% Increase in Property Prices
Hyderabad recorded a 32% increase in residential property prices in Q3 2024 compared to Q3 2023. This is the highest year-on-year growth among the top seven Indian cities. The surge in residential property prices in Hyderabad is attributed to rising input costs and growing demand. In just three months, between Q2 2024 and Q3 2024, prices rose by 4%, with average prices reaching INR 7,150 per square foot from INR 6,900 in the previous quarter.
City-Level Price Trends (INR/sq.ft):
| Cities | Q3-2024 | Q2-2024 | % Change (Q2-2024 Vs Q3-2024) | Q3-2023 | % Change (Q3-2023 Vs Q3-2024) |
|---|---|---|---|---|---|
| NCR | 7,200 | 6,800 | 6% | 5,570 | 29% |
| MMR | 16,300 | 15,650 | 4% | 13,150 | 24% |
| Bangalore | 8,100 | 7,800 | 4% | 6,275 | 29% |
| Pune | 7,600 | 7,400 | 3% | 6,550 | 16% |
| Hyderabad | 7,150 | 6,900 | 4% | 5,400 | 32% |
| Chennai | 6,680 | 6,500 | 3% | 5,770 | 16% |
| Kolkata | 5,700 | 5,500 | 4% | 5,000 | 14% |
The overall property prices across the top seven cities rose by 23% annually, reflecting a significant market shift. According to ANAROCK’s report, this increase is a result of escalating construction costs and robust sales. The residential property prices in Hyderabad reached a new high, making it a standout city in terms of price appreciation.
Reasons Behind the Price Surge
Several factors contributed to the surge in residential property prices in Hyderabad. Escalating input costs, including construction materials like steel and cement, have driven up overall prices. Additionally, a growing demand for residential properties, especially in premium locations, has fueled the price hike. The market’s supply-demand dynamics have shifted, with fewer units available for sale, further intensifying the competition among buyers.
ANAROCK’s report also indicates that the surge in prices is linked to an increase in high-end property developments, attracting investors and homebuyers looking for luxury residences. Despite the rise in Hyderabad’s property prices, there has been a decline in housing sales across the city.
Decline in Housing Sales Despite Price Increase
Ironically, despite the steep rise in residential property prices in Hyderabad, the city saw a sharp drop in housing sales. Hyderabad recorded the second-highest decline in sales among the top seven cities, with a 22% drop from Q3 2023 to Q3 2024. Housing sales fell from 16,375 units in Q3 2023 to 12,735 units in Q3 2024.
City-Level Absorption Trends (Units):
| Cities | Q3-2024 | Q2-2024 | % Change (Q2-2024 Vs Q3-2024) | Q3-2023 | % Change (Q3-2023 Vs Q3-2024) |
|---|---|---|---|---|---|
| NCR | 15,570 | 16,550 | -6% | 15,865 | -2% |
| MMR | 36,190 | 41,540 | -13% | 38,505 | -6% |
| Bangalore | 15,025 | 16,355 | -8% | 16,395 | -8% |
| Pune | 19,050 | 21,145 | -10% | 22,885 | -17% |
| Hyderabad | 12,735 | 15,085 | -16% | 16,375 | -22% |
| Chennai | 4,510 | 5,020 | -10% | 4,945 | -9% |
| Kolkata | 3,980 | 4,640 | -14% | 5,320 | -25% |
The reasons for the drop in sales could be linked to the affordability factor. As prices continue to climb, potential buyers may be hesitant to make purchases. Moreover, many developers are focusing on premium housing projects, which are priced out of reach for the average homebuyer. This shift in market focus has impacted housing sales in Hyderabad’s real estate market.
Housing Supply Decline in Hyderabad
Adding to the challenge, Hyderabad also witnessed a substantial decline in new housing supply. In Q3 2024, the city added approximately 13,890 units, a significant drop from the 24,900 units added in Q3 2023. This 44% decrease in housing supply further exacerbates the price rise, as fewer units are available for purchase, driving up competition among potential buyers.
Conclusion
The residential property prices in Hyderabad have seen an unprecedented surge in Q3 2024, driven by rising construction costs and strong market demand. However, this price hike has also led to a significant decline in housing sales and supply. As the real estate market continues to evolve, potential buyers may find it challenging to navigate the rising prices, while developers must balance demand and affordability to sustain long-term growth.
Disclaimer:
The information provided in this article is based on ANAROCK Research and market trends as of Q3 2024. All data should be independently verified before making any real estate investment decisions.
Fastest Pakistani Drama Hits 2 Billion Views
