The real estate market in Hyderabad is currently experiencing a significant slowdown due to a huge oversupply. Despite being relatively cheaper than other metro areas, house prices in the city have risen sharply. No part of Hyderabad now offers properties for less than Rs 1 crore to Rs 1.25 crore, with residential prices in the western region reaching a minimum of Rs 10,000 per square foot. This price point is not affordable for a large section of buyers, as noted by GV Rao, president of the Telangana Developers Association, who highlights the widening gap between supply and demand.
Additionally, market dynamics are influenced by seasonal sentiments. Many buyers consider it inauspicious to purchase homes during June and August, which has led to a decline in property registrations. This sentiment is compounded by the start of the academic year, prompting potential buyers to prioritize their children’s education over real estate investments. However, V Rajashekhar Reddy, President of CREDAI Hyderabad, anticipates a pickup in sales between October and December, coinciding with the festive season, a time when many people find it opportune to make purchases, including properties.
Conversely, some industry players point out that the challenges facing the real estate market in Hyderabad have been exacerbated since June, when the Hyderabad Development Authority (HYDRAA) began demolishing encroachments. This action has instilled a sense of apprehension among potential buyers, making them hesitant to invest. Furthermore, the process of obtaining building permissions has tightened, resulting in a decline in new project launches, according to N Ramachandra Reddy, an executive member of CREDAI National and former chairman of CREDAI Telangana.
