Telangana Real Estate Faces Steep Decline in 2025: Hyderabad Property Registrations Hit 3-Year Low Despite Govt Schemes

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Telangana Real Estate Faces Steep Decline in 2025: Hyderabad Property Registrations Hit 3-Year Low Despite Govt Schemes​

Hyderabad’s property registrations drop to 5,444 units in January 2025, marking a 3-year low. Explore why Telangana’s real estate struggles despite state initiatives like SWAMIH and Future City projects.​

Hyderabad’s real estate market, once a beacon of growth in India, has recorded its lowest property registrations in three years during January 2025. Despite aggressive government efforts to revive the sector through infrastructure projects and policy incentives, Telangana’s housing market remains sluggish, with a notable decline in affordable housing demand and stagnant overall growth.

Telangana Real Estate Continues Downward Trend in Early 2025​

Key Highlights of the Decline​

  • Residential Registrations Drop: Only 5,444 residential properties were registered in January 2025, down from 5,454 in January 2024—a marginal but symbolic decline reflecting buyer caution.
  • District-Level Breakdown:
  • Medchal-Malkajgiri: 45% of total registrations.
  • Rangareddy: 41% share.
  • Hyderabad District: Just 14%, the lowest among major regions.
  • Luxury vs. Affordable Housing Divide:
  • Properties priced above ₹1 crore surged by 12% YoY.
  • Sub-₹50 lakh segment fell by 3%, signalling reduced affordability.

Government Efforts Fail to Reverse the Slide​

The Telangana government has rolled out multiple schemes to stimulate growth, including:

SWAMIH Fund Revival: ₹15,000 crore allocated to complete stalled affordable housing projects.
Future City Project: A tech-driven urban hub near Hyderabad aimed at attracting global investments.
Infrastructure Upgrades: Expansion of metro rail, Outer Ring Road, and Mission Bhagiratha for water supply.
Despite these measures, rising property costs, high loan interest rates, and regulatory delays under RERA have deterred buyers.

What’s Driving the Luxury Housing Boom?​

While the broader market falters, demand for premium properties (1,000–2,000 sq.ft.) dominates 69% of registrations. Experts attribute this shift to:

Economic Polarization: High-income buyers capitalize on stable investments, while middle-class demand wanes.
Lifestyle Aspirations: Preference for amenities like smart home tech, green spaces, and larger living areas.
Investor Confidence: Luxury properties in areas like Gachibowli and HITEC City retain value despite market volatility.

Challenges Ahead for Telangana’s Real Estate​

  1. Affordability Crisis: Stagnant wages and rising home loan rates (up 2% since 2023) squeeze middle-class buyers.
  2. Oversupply in Mid-Segment: Developers struggle to sell inventory in the ₹50 lakh–₹1 crore range, despite a 3% YoY rise.
  3. Policy Bottlenecks: Delays in project approvals and RERA compliance hinder new launches.

Market Outlook for 2025​

Industry analysts predict:

Short-Term Stagnation: Registrations may remain flat until interest rates ease or buyer sentiment improves.
Long-Term Potential: Hyderabad’s status as an IT hub and infrastructure upgrades could stabilize the market post-2025.

Telangana’s real estate sector stands at a crossroads. While luxury housing thrives, the affordability gap threatens broader market recovery. For Hyderabad to regain momentum, policymakers must address regulatory hurdles and prioritize inclusive growth strategies.

Source: https://munsifdaily.com/telangana-real-estate-faces-steep-decline/

Searching for open plot or 3-4BHK Independent House G+1 or 3-4BHK Apartment in Hyderabad under 1.5 crores :

Since my family was looking for any 3-4BHK Independent houses G+1 or 3-4BHK Apartments under 1.5 crores, there is none available because of the hype created during KCR regime. During 2019, 3-4BHK Independent House G+1 in 250 Sq. Yards used to cost 1.2 crore but now they are saying 2 crores with the same build & area. In Moinabad, 1 Sq. Yard is costing 40k & if we need 300 Sq. Yards then land alone will cost 1.2 crore. Then what about building a 3-4BHK Independent House G+1 will cost? Now they are dividing the land into 125 Sq. Yards plots & building houses from perimeter wall to wall and putting 1.3 crores as price. Who is questioning them?

PS: 1 square yard is equal to 9 square feet.

In nobroker site property rates in Hyderabad is given comparing 2024 Vs. 2025 & the property rates 10 years ago in Hyderabad. Check it once: Hyderabad Property Rates: Price per Square Foot and Rental Trends in Top Areas (Updated 2025)
 
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Real estate in the long term tends to form a bubble and pop off at the peak, keeping markets down for quite sometime.
Currently, it seems North West Indian market is heating up, some other regions are cooling.
 
TEUser2K1 said:
Real estate in the long term tends to form a bubble and pop off at the peak, keeping markets down for quite sometime.
Currently, it seems North West Indian market is heating up, some other regions are cooling.
Click to expand...
In Rajasthan's Jaipur one venture by name Nakshatra of One Realty Group are offering 2-3BHK Villas for 30lacs-70lacs. Compared with this if I ask in Hyderabad they will ask for 2-3crores at least. Bastards.
 
My mom recently went to the registration office to get some documents. She said in the whole time she has stayed in my city, she has never seen the office this empty.
I'm from a small city in Tamil Nadu.
 
DBot said:
My mom recently went to the registration office to get some documents. She said in the whole time she has stayed in my city, she has never seen the office this empty.
I'm from a small city in Tamil Nadu.
Click to expand...
TN real-estate is somewhat better compared with TS while even AP real-estate is also better because AP is still developing after it got divided in 2014.
 
Did the housing prices ever correct themselves in the indian real-estate market ? At best they seem to stagnate.

I was looking for a property in hyd for few weeks in feb right before Covid lockdown happened and even then there were many properties that are completed but unsold for almost 2-3 years just waiting for some poor fellow to pay the inflated asking price.

Even during peak covid, the prices were stagnant but did not reduce. Some of those properties are still on the market with almost 1.5-2x the 2020's asking price.

I don't know how the economics work out for them but as long as builders find it profitable to hold on to properties even in down market trend just waiting for the right buyer willing to pay insane prices, housing market is not going to get affordable.

I couldn't commit to a purchase until now due to covid & personal reasons, but I might be in the market soon. Based on current prices, I'd have to spend a far higher percentage of savings for down payment and monthly salary for EMI to purchase a similar house than I would have to in 2020 and that's with a series of regular salary hikes .( not covid era hiring frenzy kind of hikes unfortunately).
 
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