Hyderabad’s Real Estate Enters a Wait‑and‑Watch Phase

IT Layoffs Send Ripples Through Property Market

Hyderabad’s once‑booming real estate sector—propelled by rapid growth in the IT/ITES industry—is now showing signs of slowdown as recent layoffs ripple across the city. Numerous IT professionals are postponing residential purchases, leading to a sharp decline in new bookings and delays in payment schedules. Developers have responded by revising pricing strategies amid ongoing uncertainty.

Mid- to Premium‑Segment Feels the Strain

The segment most affected is mid- to premium-range housing (2 BHK and 3 BHK apartments priced between ₹70 lakh and ₹1.5 crore). Developers note that while site visits continue, actual sales have dropped — many prospective buyers are taking a pause, reflecting growing financial anxiety among IT employees.

Chalam C.S., CEO of Cresco Housing, highlights that the market powered by salaried IT professionals over the last five years is now cooling off. He projects that further layoffs could significantly deepen the impact on real estate demand.

NRI and First-time Buyer Sentiment Dampens

Key buyer segments such as NRIs and first-time homebuyers are becoming more cautious. International inquiries have declined, and Dr. Nandi Rameswara Rao of Realtor Oxygen estimates a 15–20 % dip in sales and ~5 % increase in cancellations since the IT layoffs began earlier this year.

Broader Real Estate Trends in Hyderabad

Ongoing Regulatory Crackdowns

Telangana’s RERA has recently imposed penalties on multiple developers in Hyderabad for delays, misrepresentation, and fraud — highlighting increased regulatory scrutiny in the sector.

Land Records Chaos and Ghost Villages

Hyderabad’s rapid expansion has exposed unresolved land records issues. Approximately 413 unmapped villages (some within the metro boundaries) remain unregistered, creating challenges in legal clarity, title verification, and planning.

Real Estate Growth Comes with Ecological Costs

Urban sprawl across fringe areas—such as Gachibowli, Manikonda, and Narsingi—has replaced forest buffers, leading to wildlife sightings and conflicts near areas like Gandipet and Osman Sagar. These developments underscore the ecological trade-offs of unchecked realty growth.

Meanwhile, the IT hub itself faces a shortage of Grade‑A office space, complicating prospects for new corporate investments, including large-scale GCCs like those planned by global firms.

Developer Strategies:

Recalibrate prices and offer flexible payment terms
Focus on budget and entry-level housing
Delay new launches until demand stabilizes
Bolt-on value-added services or incentives

Buyer Guidance:

Assess job stability and leverage fixed-deposit equity
Prioritize properties with clear titles and RERA registration
Consider outskirts if looking for better affordability and longer-term appreciation

In Summary

Hyderabad’s real estate market is now at a sensitive juncture. After years of buoyant demand driven by a flourishing IT sector, fresh layoffs have triggered a pause in buyer sentiment, especially in the mid‑level housing space. While prices haven’t dropped yet, developers are cautious—and some are reducing prices in response.

Meanwhile, systemic issues—from unmapped village lands to environmental strain caused by urban expansion—remain embedded in the broader narrative. The coming months will likely determine whether Hyderabad’s housing market recovers or faces a deeper correction.

Hyderabad’s Real Estate Enters a Wait‑and‑Watch Phase