Hyderabad Leads Decline in Realty Market as Sales and Launches Plummet
The Indian real estate market witnessed a significant downturn in the first quarter of 2025, with Hyderabad emerging as the most affected city. According to the latest Anarock report, there was a sharp year-on-year decline in both house sales and new project launches across major Tier 1 cities. While the overall market faced a slowdown, Hyderabad experienced the steepest decline, followed by Kolkata.
Sharp Drop in House Sales Across Cities
The Anarock report highlighted that housing sales in the seven metropolitan cities—Mumbai Metropolitan Region (MMR), Pune, Bengaluru, National Capital Region (NCR), Hyderabad, Chennai, and Kolkata—fell drastically in Q1 2025. A total of 93,280 residential units were sold across these cities, marking a 26% decline from the 1,30,170 units sold in Q1 2024.
Among these cities, Hyderabad recorded the sharpest drop, with a staggering 49% decline in sales. In Q1 2024, Hyderabad sold 19,660 units, whereas in Q1 2025, the number dwindled to just 10,100 units. Kolkata followed with a 31% dip in sales, while Bengaluru, showing some resilience, recorded a relatively lower decline of 16%.
Decline in New Project Launches
Apart from sales, the number of new project launches also took a hit. The top seven cities saw 1,00,020 new units launched in Q1 2025, a 10% decrease compared to 1,10,865 new launches in Q1 2024.
Hyderabad again bore the brunt of this decline, witnessing a massive 55% drop in new launches. In Q1 2024, the city had 22,960 new units introduced, but in Q1 2025, the number was drastically reduced to 10,275 units. This marks the highest drop in new project launches among all cities. In contrast, NCR saw a significant 53% increase in new launches, bucking the downward trend.
Regional Performance of Major Markets
While Hyderabad and Kolkata suffered the most in terms of sales, MMR and Pune collectively accounted for 51% of total housing sales in Q1 2025. However, both cities also faced a decline, with MMR seeing a 26% year-on-year drop and Pune experiencing a 30% decline.
What Lies Ahead for Hyderabad’s Realty Market?
The steep decline in Hyderabad’s real estate market raises concerns about the overall economic and investment climate in the city. Several factors, including economic slowdown, regulatory changes, and changing buyer sentiment, could be contributing to this trend. Industry experts will be closely watching the upcoming quarters to assess whether Hyderabad can bounce back or if the market slowdown will persist further.
With the real estate sector being a key contributor to economic growth, the coming months will be crucial in determining the trajectory of Hyderabad’s housing market. Investors and homebuyers will need to tread cautiously, keeping an eye on market trends and policy developments.
