Hyderabad Real Estate Sales dip by 50% in Q1 2025, what are your thoughts on this?:

People are reading this like a crash, when it’s more like a controlled recalibration.Inventory overhang is up to 24 monthsBut average prices per sq.ft rose from ₹6,188 in 2022 to ₹8,614 by Q3 2024That’s +39% price growth despite a rise in unsold inventory.Ask yourself: when does that happen?Only when demand is resilient and buyers are willing to absorb the price increases — especially in core markets like Kokapet, Tellapur, Financial District.What also skews perception is the citywide average price. People keep quoting ₹7,500/sq.ft, but that’s misleading.In Q3 2024:45% of all demand was for ₹5K–₹7.5K/sq.ft homes32% was in the ₹7.5K–₹10K high-end range11% went to luxury >₹10K/sq.ftSo if you weight this correctly, the real market price sits well above the average — especially in West Hyderabad.

I’m one of those long-term investors who entered around 2021 in Narsingi.Back then, it was a ₹5,500/sq.ft market. Today, I’m seeing launches at ₹9,200–9,500/sq.ft for similar units.I did have some concerns when I saw inventory climbing and fewer new projects launching…but then I looked at the actual absorption trend.Back in 2022, we had 80,000+ units launched in Hyderabad, but only ~14–15K sold.Now in Q3 2024, launches are down to ~13K, and sales are still in the 12–13K range.That’s as close to one-to-one absorption as it gets.The supply-demand gap has narrowed sharply.Developers are clearly being cautious — smaller phases, premium products, better margins.I wouldn’t call this a buyer’s market or a seller’s market.It’s an efficiency-driven market — with less noise and more intention.

I get the impulse to call it a correction, but the story behind that 49% dip is more nuanced than it looks.People are quoting the sales drop, but no one’s pointing out that new launches dropped by 55% in the same timeframe.That’s key.Fewer units launched → fewer units to sell → fewer sales.This is a supply-led dip, not a demand collapse.