Hyderabad and Global Real Estate Trends: 2024 and Beyond
This report provides a comprehensive overview of the real estate landscape in Hyderabad, India, and across the globe, with a focus on recent developments, innovations, and emerging trends. The analysis draws on a variety of sources, including leading real estate news websites, industry reports, and expert opinions.
12/16/20249 min read
Top Real Estate News Sources
To ensure a comprehensive understanding of the real estate landscape, we have identified key news sources for both the Indian and global markets. These sources are presented in the tables below for easy reference.
Source Name
Description
Website
The Property Times
This online portal offers news, advice, and commentary for both industry professionals and consumers.
Economic Times
Real Estate
This specialized website provides in-depth coverage of the Indian real estate market, including news, research, and expert opinions.
Realty+
A respected real estate magazine with offices in Delhi, Mumbai, and Bengaluru, offering insights into the Indian property market.
ETRealty
A knowledge-sharing platform for real estate updates and related industries, offering news, research, and expert opinions.
realty.economictimes.indiatimes.com
Mint
A real estate news source that focuses on personalized and efficient service.
A top real estate website in India, providing property listings and market information.
A top real estate website in India, providing property listings and market information.
A top real estate website in India, providing property listings and market information.
A top real estate website in India, providing property listings and market information.
Source Name
Description
Website
The Real Deal
A leading industry publication covering broker news, commercial real estate, technology, sales and marketing, and other categories.
Multi-Housing News
A source for news and information on the multi-housing industry.
Realtor Magazine
The official magazine of the National Association of Realtors, providing insights and resources for real estate professionals.
Forbes Real Estate
This website focuses on the luxury real estate market, featuring articles on high-end properties and market trends.
Bisnow
A prominent commercial real estate publication covering markets in the United States, Canada, and the U.K.
The Wall Street Journal Real Estate Section
A reputable source for comprehensive news on housing markets, commercial real estate, and property investment.
Bloomberg Real Estate
Known for its robust analysis and global perspective, Bloomberg offers detailed coverage on real estate markets around the world.
Realtor.com News & Insights
This site provides practical advice and insights, especially useful for homebuyers and real estate professionals.
National Association of Realtors (NAR)
Provides up-to-date news on market trends, legislative changes, and educational content for real estate professionals.
Recent Developments in Hyderabad Real Estate
The Hyderabad real estate market has shown signs of a slowdown in recent months. Sales in the third quarter of 2024 dropped by 16% from the previous quarter, resulting in 12,700 units sold1. This slowdown can be attributed to a confluence of factors:
Oversupply: The Hyderabad market has experienced a surge in new housing launches in recent years, leading to a surplus of properties available for sale. This oversupply has created downward pressure on prices and contributed to the slowdown in sales2.
Rising Prices: Property prices in Hyderabad have been on an upward trend, making it increasingly difficult for middle-income and first-time homebuyers to enter the market. This affordability challenge has further dampened demand and contributed to the decline in sales1. For instance, residential prices in the western part of the city now cost a minimum of ₹10,000 per square foot2.
HYDRAA Demolitions: The recent demolitions carried out by the Hyderabad Road Development Authority (HYDRAA) have introduced an element of uncertainty into the market. These demolitions, aimed at addressing illegal constructions, have made buyers more cautious and hesitant to invest in properties, particularly in areas where such actions have taken place2.
In addition to these challenges, a significant development in the Hyderabad real estate market is Microsoft India's recent acquisition of a land parcel from Natco Pharma for ₹181.25 crore3. This acquisition highlights the continued interest of major corporations in Hyderabad's real estate sector and its potential for future growth.
Despite these challenges, Hyderabad remains an attractive market for real estate investment4. The city's strong economic growth, fueled by the IT and pharmaceutical sectors, continues to attract new residents and businesses, creating sustained demand for housing and commercial spaces4.
Key Trends in Hyderabad Real Estate
Shift towards High-Value Homes: A notable trend in the Hyderabad real estate market is the increasing demand for high-value homes. Sales of properties priced above ₹1 crore have shown a significant rise, indicating a growing preference among affluent buyers for luxury and premium housing options5.
Stable Registrations: Despite the slowdown in sales volume, home registrations have remained relatively stable. This suggests that while buyers may be more selective and cautious, there is still a considerable level of interest and activity in the Hyderabad property market6.
Growth in Office Space: Hyderabad's office space market has witnessed substantial growth, particularly in Q3 of FY 2022. This growth was primarily driven by the expansion of the IT and BPM (Business Process Management) industries, which have established a strong presence in the city7.
Decreasing Affordability: While Hyderabad has been known for its relatively affordable housing market, there are indications that affordability levels are declining. This trend is expected to continue, potentially impacting the demand for housing, especially in the mid-income and affordable segments6.
Shifting Housing Preferences: A recent survey has revealed a decline in demand for 1BHK units in Hyderabad. This suggests a shift in homebuyer preferences towards larger homes, potentially driven by factors such as changing family structures and the desire for more living space8.
Global Real Estate Trends
The global real estate market is undergoing a period of transformation, shaped by various factors, including economic conditions, technological advancements, and sustainability concerns.
Key Trends in Global Real Estate
Recovery in Investment: After experiencing a downturn, the global real estate capital market is showing signs of recovery. Investment is projected to increase by 7% to US$747 billion in 2024, with further growth to US$952 billion forecast for 20259. This recovery is attributed to factors such as stabilizing investment turnover, the return of institutional investors, and renewed confidence in the market9.
Supply Shortages: A key challenge in the global real estate market is the increasing shortage of supply for in-demand assets across various property types. This shortage is expected to intensify in 2025, potentially driving up property values and creating competition among investors10.
Focus on Sustainability: Sustainability is becoming a major focus in the real estate sector, with growing emphasis on environmentally friendly building practices and energy efficiency. This trend is driven by factors such as rising energy costs, concerns over climate change, and increasing awareness among investors and tenants about the importance of sustainable buildings10.
Technological Advancements: Technology continues to revolutionize the real estate industry, with innovations such as virtual property tours, AI-driven analytics, and online platforms transforming the way properties are bought, sold, and managed11. These advancements are enhancing market transparency, efficiency, and accessibility for both investors and consumers.
Growing Corporate Confidence: There is a growing sense of optimism among corporations regarding the real estate sector. This confidence is reflected in increased investment in commercial real estate and a willingness to execute on long-term real estate strategies12.
Declining Asking Prices in the UK: In a recent development, asking prices for properties in the UK fell by 1.7% in December 202413. This specific example highlights the dynamic nature of the global real estate market and the variations that can occur across different regions.
The interplay between these trends creates both opportunities and challenges for investors and stakeholders in the global real estate market.
Deep Dive into New Trends in Real Estate - 2024
The year 2024 has witnessed the emergence of several significant trends in the real estate sector, reshaping the landscape for both buyers and sellers:
Homeowners Staying Put: One of the most notable trends is the increasing tendency for homeowners to stay in their current homes rather than selling. This trend is largely attributed to the prevailing high mortgage rates, which make it less appealing for homeowners to move and take on new loans with higher interest costs14.
Smaller Homes: The median size of new single-family homes is shrinking, reflecting a shift in buyer preferences towards more compact and efficient living spaces. Ranch houses, known for their single-story layout and open floor plans, have gained popularity as they offer flexibility and adaptability to different lifestyles14.
Sustainable Features: Sustainability is no longer a niche consideration but a mainstream expectation in the real estate market. Homebuyers are increasingly prioritizing sustainable features in their homes, such as energy-efficient appliances, solar panels, and eco-friendly building materials14. This trend is driven by growing awareness of environmental issues and the desire to reduce energy consumption and costs.
Outdoor Space: Outdoor living spaces are becoming increasingly important, with features like balconies, patios, and rooftop gardens in high demand. This trend reflects a desire for greater connection with nature and the outdoors, especially in urban environments where access to green spaces may be limited14.
AI-Driven Technology: Artificial intelligence (AI) is rapidly transforming the real estate industry, with applications ranging from personalized property recommendations to smart home automation. AI is being used to make homes more energy-efficient, user-friendly, and responsive to the needs of occupants14. The global AI boom is set to play an even bigger role in the real estate industry, impacting demand, design, function, and business models12.
Shifting Rental Market: The rental market, particularly in major cities, is experiencing some shifts. With the rise of remote work and changing lifestyle preferences, there has been a movement of people from cities to suburbs, impacting rental demand and prices in urban areas15.
These trends highlight the evolving dynamics of the real estate market and the need for both buyers and sellers to adapt to changing preferences and technological advancements.
Fractional Real Estate
Fractional real estate ownership is an innovative investment model that is gaining traction in the market. It allows individuals to acquire a share of a high-value property, providing a more accessible and flexible way to invest in real estate.
Impact of Fractional Real Estate on the Market
Increased Accessibility: Fractional ownership has democratized real estate investment, making it accessible to a wider range of investors who may not have the capital to purchase a property outright16. This model allows individuals to participate in the real estate market and potentially benefit from property appreciation and rental income.
Enhanced Liquidity: One of the key advantages of fractional ownership is the enhanced liquidity it offers. Investors can easily buy and sell shares in fractional properties, providing greater flexibility and control over their investments16. This liquidity makes it easier for investors to adjust their portfolios and respond to changing market conditions.
Diversification: Fractional ownership allows investors to diversify their real estate holdings by investing in different types of properties, such as residential, commercial, and vacation rentals, across various locations17. This diversification helps to mitigate risk and potentially enhance returns.
Technology Integration: Technology plays a crucial role in facilitating fractional property investments. Online platforms and blockchain technology are being used to streamline transactions, enhance transparency, and provide secure and efficient management of fractional ownership shares16.
Potential Risks and Challenges:
While fractional ownership offers numerous benefits, it's essential to consider the potential risks and challenges associated with this investment model. One of the key challenges is the potential for slower resale. Selling a fractional share can take longer compared to selling a fully owned property, as the market for these shares is typically smaller18. This can impact liquidity and may require investors to adjust their expectations regarding the timeframe for exiting their investments.
Synthesis and Conclusion
The real estate market, both in Hyderabad and globally, is in a state of flux, influenced by a complex interplay of economic, social, and technological factors. Hyderabad's real estate sector, while facing challenges such as oversupply and rising prices, continues to be supported by the city's strong economic growth and ongoing infrastructure development. The recent acquisition of land by Microsoft India further underscores the potential for future growth in the Hyderabad market.
Globally, the real estate market is recovering from a downturn, with investment expected to rise in the coming years. Supply shortages, sustainability concerns, and technological advancements are shaping the future of the global real estate landscape. The emergence of new trends, such as fractional ownership and the increasing use of AI, is transforming the way people invest in and interact with real estate.
The trends observed in Hyderabad, such as the shift towards high-value homes and the increasing demand for sustainable features, align with broader global trends. This suggests that the Hyderabad market is becoming increasingly integrated with the global real estate landscape, presenting both opportunities and challenges for investors and developers.
Fractional ownership, while gaining popularity, requires careful consideration of potential risks and challenges, such as the potential for slower resale and the need for effective property management solutions.
For investors and professionals in the real estate sector, staying informed about these trends and developments is crucial for making informed decisions, mitigating risks, and capitalizing on emerging opportunities in both the Hyderabad and global markets.
Works cited
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2. Hyderabad's Real Estate Market Faces 42% Decline in House Sales: A Deeper Look - Times of India, accessed December 17, 2024, https://timesofindia.indiatimes.com/city/hyderabad/hyderabads-real-estate-market-faces-42-decline-in-house-sales-a-deeper-look/articleshow/113644096.cms
3. Hyderabad - Latest hyderabad , Information & Updates - Real Estate ..., accessed December 17, 2024, https://realty.economictimes.indiatimes.com/tag/hyderabad
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10. Global Real Estate Outlook 2025 - JLL, accessed December 17, 2024, https://www.jll.de/en/trends-and-insights/research/global/global-real-estate-outlook
11. The Future Of Real Estate Industry: 9 Trends to Watch For In 2024 - Xara Cloud, accessed December 17, 2024, https://www.xara.com/blog/the-future-of-real-estate-industry-trends/
12. Big questions real estate is asking in 2025 - JLL, accessed December 17, 2024, https://www.us.jll.com/en/trends-and-insights/investor/big-questions-real-estate-is-asking-in-2025
13. International - ET Realty, accessed December 17, 2024, https://realty.economictimes.indiatimes.com/news/international
14. Real Estate and Design Trends to Watch in 2024 - National Association of REALTORS®, accessed December 17, 2024, https://www.nar.realtor/magazine/real-estate-news/home-and-design/real-estate-and-design-trends-to-watch-in-2024
15. 9 Top Real Estate Trends In 2024 - Exploding Topics, accessed December 17, 2024, https://explodingtopics.com/blog/real-estate-trends
16. Fractional Ownership in Real Estate: Unlocking New Horizons - Shivalik Institute, accessed December 17, 2024, https://www.shivalik.institute/articles/fractional-ownership-in-real-estate-unlocking-new-horizons
17. Fractional Real Estate Ownership: Everything You Need to Know - Geonet Property, accessed December 17, 2024, https://geonet.properties/blog/fractional-real-estate-ownership
18. What is Fractional Ownership in Real Estate? (Is It Worth It?) - FastExpert, accessed December 17, 2024, https://www.fastexpert.com/blog/fractional-ownership-in-real-estate/
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