Hyderabad Real Estate has seen some action in Q2 2024, both regionally and nationally. This report is a detailed analysis of the key happenings, price trends, and future outlook. It is a must-read for investors, developers, and potential homebuyers.

Zonal Classification and Key Micro-Markets

Hyderabad's real estate landscape is segmented into five key zones:

  • Central: Ameerpet, Punjagutta, Somajiguda, Himayatnagar, Kachiguda, Khairatabad

  • North: Miyapur, Pocharam, Bachupally, Nizampet, Bollaram, Yepral, Shamirpet

  • South: Shamshabad, Adibatla, Maheshwaram, Shadnagar, Rajendranagar, Srisailam Highway

  • East: LB Nagar, Nagole, Uppal, Habsiguda, Ghatkesar, Nacharam, Peerzadiguda, Vanasthalipuram

  • West: Gachibowli, Kondapur, Tellapur, Manikonda, Kukatpally, Attapur, Kokapet, Patancheru, Madhapur, Appa Junction

Market Performance Overview

Key Launches and Price Trends:

  • New Launches: In Q2 2024, Hyderabad saw the launch of 13,800 units, marking a 40% decrease from the previous quarter. The west zone led with 51% of these new launches.

  • Sales: 15,100 units were sold, a 23% decline from Q1 2024 but an 11% increase year-on-year from Q2 2023.

  • Inventory: The city currently has 99,900 available units, a 1% decrease from the previous quarter, indicating a potential uptick in sales activity.

Price and Rent Trends:

Micro-Market

Avg. Quoted Rent (₹/month)

Quarterly Change (%)

Avg. Quoted Rate (₹/sf)

Quarterly Change (%)

Gachibowli

30,000 - 41,000

1%

8,500

12%

Kondapur

26,000 - 33,000

2%

8,200

12%

Miyapur

19,000 - 26,000

2%

6,500

8%

LB Nagar

13,000 - 17,000

2%

6,600

5%

Adibatla

14,000 - 18,000

2%

4,530

3%

Demand-Supply Dynamics

Sales Distribution:

  • West Hyderabad: 49% of total sales

  • North Hyderabad: 32% of total sales

  • South Hyderabad: 15% of total sales

  • East Hyderabad: 3% of total sales

  • Central Hyderabad: 1% of total sales

Inventory Overhang

Hyderabad is one of the few cities among the top 7 cities in India where inventory overhang has decreased, along with Kolkata. By the end of Q2 2024, Hyderabad has 99,900 units in inventory. While the city has a large share of Pan India’s inventory (17%), Q2 saw a 1% decrease from the previous quarter. This is a sign of increased sales activity. However, year-on-year inventory has increased by 24%.
On a positive note, the city's inventory overhang has decreased by a month compared to Q1, standing at 17 months at the end of Q2. 

Price Trend (INR/SF):

Above is the graph of the Hyderabad residential market price trend (INR/sf) from Q2 2016 to Q2 2024. Here are the key points:

  1. Overall Growth: The price per square foot has grown steadily over the period from around 5,500 INR/sf in Q2 2016 to over 8,000 INR/sf in Q2 2024.

  2. Peaks and Troughs: There is a high point in Q2 2020 and a slight dip in Q2 2021 which could be due to market correction or external factors like economic conditions.

  3. Recent Trend: Post Q2 2021, the prices have been rising steadily indicating a strong market recovery.

  4. Market Strength: The continuous upward trend indicates increasing demand and value of residential properties in Hyderabad, a good market for investors.

Overall, the sustained increase in prices reflects a healthy and growing residential real estate market in Hyderabad.

Supply vs. Sales vs. Available Inventory (Units):


The graph shows supply and sales have been strong in Hyderabad residential market from Q2 2019 to Q2 2024 but inventory has increased significantly in Q2 2023. New launches are outpacing sales resulting in inventory buildup. The market is strong but has an oversupply issue, and need to work on sales strategies to improve absorption.
The implementation of the Best Real Estate CRM can be crucial in managing such a situation. Such tools, coupled with sales and marketing automation and lead management, make operations smooth and increase sales efficiency, hence effectively dealing with the challenge of oversupply.

Future Outlook

Hyderabad is looking up in 2024. The city has strong fundamentals. IT-ITeS, infrastructure, and overall business ecosystem will drive demand for quality housing and commercial spaces. The city’s economy is not just the services sector. There are equally strong and able industrial, manufacturing, and logistics sectors along with healthcare and education that drive real estate demand. Price appreciation might be moderate going forward. But a decline is not likely. The overall long-term outlook for Hyderabad real estate is positive

Sources:

  1. ANAROCK Research

  2. Various market analysis and real estate data sources
    ETV Bharat

  3. CRE MATRIX Report