The latest to highlight what could be described as a tragic dwindling of real estate market fortunes in the city is the ‘Real Insight Residential Report’ by PropTiger.com.

Hyderabad: Once flourishing and an envy of every metro in the country, Hyderabad residential real estate seems to be fumbling to a steep decline, both in terms of sales and also new launches.

The latest to highlight what could be described as a tragic dwindling of real estate market fortunes in the city is the ‘Real Insight Residential Report’ by PropTiger.com.

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The report which examined eight residential markets of the country during July-September quarter of 2024 revealed that Hyderabad faced a notable decline, with sales dropping 19 per cent year-on-year (YoY) compared to last year. While 14,191 units were sold in Q3 of 2023, the numbers dwindled to 12,296 in Q2 2024 and further dropped to 11,564 units in Q3 2024.

Not just sales, the prevailing market trend also shows a massive drop of 58 per cent in the new projects launched during this year quarter i.e., the Q3 2024. In the ‘New Launches Comparison (YoY Q3 2024 vs. Q3 2023), PropTiger.com report said, “Hyderabad experienced a sharp 58% YoY decline, with new launches falling to 8,546 units from 20,481 in the previous year.”

Though the report points out that the number of new residential units launched in the top eight markets had a significant 25% drop, the highest drop has been registered in Hyderabad. Also, the city’s drop comes in the backdrop of Delhi NCR witnessing a robust 76 per cent YoY rise in new launches, Mumbai dropping by 13 per cent, and Pune’s new supply contracting by 3 per cent.

In terms of sales too, Delhi NCR saw a significant sales surge of 29 per cent YoY and Mumbai, while leading in overall volume, experiencing a slight 1 per cent dip, the PropTiger.com said. Bengaluru’s sales decreased by 11 per cent YoY and Ahmedabad recorded a 9 per cent YoY drop, it added.

PropTiger.com report said a sharp increase in home prices, averaging a nearly 20 per cent increase across the top eight cities, impacted affordability leading to a 5 per cent YoY drop in overall sales. New launches witnessed a more significant 25 per cent YoY decrease compared to the same quarter in 2023.

Vikas Wadhawan, CFO of REA India and Business Head of PropTiger.com, said, “With the festive season kicking off with Navratri, renewed buyer interest and a spike in sales activity are anticipated. The market frenzy has slowed, creating a more stable environment for end-users.”