Challenging Times for Hyderabad Real Estate

Hyderabad’s real estate market has had significant challenges, more so in areas like Neopolis in Kokapet. There is a lot of pressure on builders with projects here. They had acquired land at higher prices when demand was high. These rates, however, are not in sync with the conditions in the market now.

Builders are finding it hard to complete work on time, and the future is uncertain. People who bought homes at pre-launch are waiting for completion and delivery. These issues are not limited to Kokapet and are plaguing high-end real estate projects citywide.

The prices of land in Hyderabad have been rising. Also, strict RERA regulations have added to the pressure. Builders are finding it difficult to break even. The demand for gated community luxury homes is going down. It is difficult for builders to buy the large pieces of land needed for these.

Regular apartments are not as popular as they were. The middle class is buying homes second-hand at below Rs. 1 crore as luxury apartments cost too much. There is a shortage of non-gated apartments in the city. It has added to the problems of the sector. The real estate market here has been showing signs of slowing down.

House sales in the city have dipped by 42%. There were 25,370 new launches from July to Sept 2023 and only 11,601 in 2024. Sales of homes saw a similar trend. Higher bank loan rates have also meant vacant and unsold homes. As per Knight Frank India, there has been a 6% dip in real estate registrations in November 2024.

There is a slowdown in the city's real estate market because of high loan interest rates. The prices of homes are too high for most people. The general perception is that homes here are unaffordable. The housing market in Hyderabad has too many homes but not enough buyers. It is difficult for builders to sell properties here.

Other factors have also added to the issue. There are new US laws that have been passed under its current President, Donald Trump. These are allowing fewer people to migrate from Telugu-speaking areas. Reduced migration has affected real estate demand among NRIs. If the pattern continues, the housing market in the city will slow down further.

Hyderabad’s real estate market will need a major revival to clear these issues and restore its growth.

Prestige Group Prelaunch Project is Prestige Spring Heights