The residential real estate market in Hyderabad is witnessing the sharpest quarter-on-quarter (QoQ) decline in housing sales, expected to decline by 36 per cent in Q2 2024.
Updated – June 26, 2024, 08:54 PM
Hyderabad: The residential real estate market in Hyderabad experienced a significant decline in the second quarter of 2024. The latest report by real estate data analytics firm PropEquity shows that both new launches and sales declined significantly during the April-June quarter of 2024.
Among the nine major cities — Mumbai, Delhi NCR, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Navi Mumbai, and Thane — Hyderabad witnessed the highest quarter-on-quarter (QoQ) decline in housing sales, falling by 36 per cent.
15,016 units were sold in Q2 2024, while 23,595 units were sold in Q1 2024. Hyderabad also witnessed a significant drop in new residential launches, with 11,603 units launched – a 19 per cent drop from the previous quarter (Q1 2024).
Moreover, compared to the same period last year (Q2 2023), Hyderabad experienced a 36 per cent decline in new residential launches, dropping from 18,232 units launched in Q2 2024 to 11,603 units. With regard to sales, Hyderabad witnessed a 20 per cent year-on-year (YoY) decline, with 18,757 units sold in Q2 2023 while 15,016 units were sold in Q2 2024.
In contrast, residential launches in Delhi, Bengaluru and Chennai recorded annual growth rates of 95 per cent, 67 per cent and 21 per cent, respectively. Hyderabad’s decline was second only to Pune, which witnessed a 47 per cent drop. For housing sales, Mumbai and Kolkata showed a 27 per cent growth on an annual basis, while Hyderabad witnessed a 20 per cent decline, followed by Pune at 15 per cent.
Sameer Jasuja, CEO and MD, PropEquity, said, “The marginal decline in supply of new launches in top tier 1 cities is primarily due to the election quarter and the sluggish nature of the second quarter. However, higher absorption compared to new supply reflects the continued strength and good health of the residential real estate market post-Covid.”
Across nine major cities, 1,19,901 units were sold in Q2 2024, down 18 per cent from 146,147 units in the previous quarter. On a year-on-year basis, housing sales witnessed a marginal decline of 2 per cent. New housing supply has also witnessed a seven per cent decline on a quarter-on-quarter basis, with 97,331 units launched in Q2 2024 as against 1,04,391 units launched in Q1 2024.