Hyderabad realty touches new highs
The success story of real estate in the city continues to make rapid strides unperturbed by any impacting factor and exhibiting an uncanny resilience.
Hyderabad: A certain buoyancy marked the Hyderabad real estate market as it bid adieu to an eventful 2022 and stepped into new year with more assured and positive outlook.
The success story of real estate in the city continues to make rapid strides unperturbed by any impacting factor and exhibiting an uncanny resilience. Even as the popular residential markets continue to expand rapidly without showing any signs of fatigue, new areas along the suburbs and beyond have started showing more promise for development
Vouchsafing the positive vibe of Hyderabad residential market, prospective property seekers remain active expressing keen interest not only in the developed property zones but also in the new and emerging one.
The west zone has been the undisputed heart and soul of the city realty’s success story. It has attracted not just the local property buyers but also wove its magic all around, taking young investors from different parts of the country into its spell. Such has been its charm that even the NRI community not just from Telangana but from other States, too, keep exploring option of investing and acquiring property in the western parts of the city.
Adding more momentum to the core of the western Hyderabad are its vicinities, nearby ones and those a bit further too. In fact, a location like Tellapur which was little known till a few years back is now bustling with construction activity and metamorphosing with towers rising high.
Knight Frank India, which released the 18th edition of its flagship half-yearly report – India Real Estate: 2022 – this week, pointed out that the locations of Tellapur, Kollur, Gandipet and Narsingi saw most of the development activity last year.
According to the Knight Frank yearly summery, Hyderabad’s residential market continued its strong sales momentum in the year 2022 and the city recorded a 28 per cent year-on-year growth in housing sales volumes accounting 31,046 units. This, the report underscores, happens to be the highest sales recorded in the city since 2011.
New launches also saw a substantial rise with the addition of 43,847 units in 2022 and capitalising on the shift in home-buyers’ sentiments, developers too launched new projects in the city during the year. Meanwhile, the average weighted prices for the region grew by 6 per cent year on year.
In its half-year report that presented a comprehensive analysis of the residential and office market performance across eight major cities for July-December 2022, Knight Frank noted, “Buyer sentiment continued to remain strong despite a sharp rise in interest rates during H2 2022.”
According to it, Hyderabad’s residential market recorded a sale of 16,353 units in H2 2022 registering a 32 per cent growth over same period previous year. Total launches during the six months grew by 18 per cent to 22,491. And that 61 per cent of these units were launched in west Hyderabad!
On the aspect of share of micro-markets, Knight Frank reports that West Hyderabad continued to have strong demand, accounting for 62 per cent of all sales in H2 2022 as purchasers preferred to be close to the city’s commercial core and office centres, Hitec City, Gachibowli, and Nanakramguda.
At the same time, North Hyderabad also witnessed marginal growth in share of total sales from 18 per cent during July- December 2021 to 19 per cent during the same period in 2022.
Interestingly, the city has offerings that match every need and every pocket size. Hyderabad remained a strong market for mid-ranged housing with the mid segment of Rs 50 lakh to Rs 1 crore accounting for 45 per cent in the second half of 2022.
At the same time, the ticket size segment of Rs 1 crore and above gained traction, increasing its proportion of sales from 19 per cent in first half of 2018 to second half of 2022. “The need to upgrade the family’s primary dwelling to meet the requirements of work and education from home has resulted in a substantial change in demand for ticket sizes higher than Rs 50 lakh,” Knight Frank report observed.
Samson Arthur, Senior Branch Director – Hyderabad at Knight Frank India, said, “Despite significant obstacles from geopolitical developments and an increase in house mortgage rates over the past few quarters, the city’s residential sector is nevertheless seeing an increase in registrations. Although the more sensitive lower ticket segment is impacted, demand for higher value properties is still strong, preserving the city’s upbeat outlook.”
