Hyderabad Real Estate: 13% Drop in Unsold Stock, Prices Steady

The Indian residential real estate market saw a 10 per cent year-on-year (YoY) increase in housing prices across the top eight cities during Q4 2024, driven by sustained demand and market confidence. According to the latest CREDAI-Colliers-Liases Foras Housing Price-Tracker Report, housing prices have been on an upward trajectory for 16 consecutive quarters since 2021.

Delhi NCR recorded the highest YoY price increase at 31 per cent, followed by Bengaluru at 23 per cent. The housing market in major cities continues to see steady demand, with premium and ultra-luxury segments contributing significantly to price appreciation.

Average Housing Prices (INR/sq ft) Across Key Markets (Q4 2024):

- Ahmedabad: Rs 7,725 (15 per cent YoY increase)

- Bengaluru: Rs 12,238 (23 per cent YoY increase)

- Chennai: Rs 8,141 (6 per cent YoY increase)

- Delhi NCR: Rs 11,993 (31 per cent YoY increase)

- Hyderabad: Rs 11,351 (2 per cent YoY increase)

- Kolkata: Rs 7,971 (1 per cent YoY increase)

- MMR (Mumbai Metropolitan Region): Rs 20,725 (3 per cent YoY increase)

- Pune: Rs 9,982 (9 per cent YoY increase)

The report highlights that unsold inventory levels dropped across all major cities, marking a 5 per cent annual reduction. Pune led the decline with a 14 per cent YoY drop, followed closely by Hyderabad at 13 per cent. Chennai and Kolkata recorded decreases of 7-10 per cent YoY, indicating improved absorption rates. The MMR region saw its unsold inventory shrink for the first time in nearly three years, settling at approximately 390,000 units.

Boman Irani, President of CREDAI National, stated that homebuyers' preference for larger spaces and integrated living solutions has fueled demand. Evolving consumer aspirations and rising construction costs have also contributed to higher pricing trends. A potential interest rate reduction in the coming months could further enhance affordability and drive residential sales.

Colliers India CEO Badal Yagnik noted that the government's recent policy interventions, including funding for stressed housing projects and a repo rate reduction, are expected to support market expansion. With continued demand for premium housing, residential prices are projected to follow a similar growth trajectory in 2025.

City-Specific Market Insights

- Delhi NCR: Saw the highest price appreciation (31 per cent YoY), driven by strong sales momentum in luxury segments. Dwarka Expressway witnessed a 58 per cent increase, while Greater Noida saw a 52 per cent rise.

- Bengaluru & Pune: Infrastructure upgrades have fueled demand in key micro-markets, with prices rising up to 15 per cent YoY in areas like Periphery & Outer West Bengaluru and Baner & Nagar Road in Pune.

- MMR: Unsold inventory declined after three years, signaling improved market stability.

- Luxury Housing Growth: Demand for spacious homes in Delhi NCR, Bengaluru, and Pune remains robust, with 3-4BHK apartment prices increasing by up to 34 per cent YoY in Q4 2024.

Pankaj Kapoor, Managing Director of Liases Foras, expects increased supply in affordable and mid-segment housing in upcoming quarters, rebalancing a market that has been skewed towards luxury properties for the past four years.

Vimal Nadar, Senior Director at Colliers India, highlighted that the growing interest in high-end housing, coupled with urban lifestyle shifts, will continue to shape pricing trends in 2025. The sector’s outlook remains positive, with developers focusing on premium offerings and strategic expansion in key micro-markets.