Real estate picks pace in Hyderabad, says Report
Emerging from the Covid pandemic, the real estate narrative in Hyderabad continues to gain strength with interest in property matters getting rejuvenated. The residential segment in particular, which was impacted a little during the pandemic and its associated lockdowns, has started to pick pace with renewed energy.
This year so far, the registration of residential units in Hyderabad has crossed the 50,000 mark. According to the latest Knight Frank India report, the Hyderabad residential market that includes the four districts of Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy, has since the beginning of the year observed registration of 50,953 residential units with a total worth of Rs 25,094 crore.
In its latest assessment, Knight Frank India noted that Hyderabad recorded registrations of 4,307 units of residential properties in September 2022 and the total value of these properties stood at Rs. 2,198 crore.
In terms of price category, the residential units in the price band of Rs 25 lakh to Rs 50 lakh constituted 55 per cent of the total sales in September 2022, which is an increase from a share of 39 per cent in September 2021. The demand for the less than Rs 25 lakh ticket size, however, weakened with its share constituting 16 per cent compared to 36 per cent a year ago.
The greater demand for larger ticket size homes remained evident as the cumulative share of sales registrations for properties with ticket sizes of above Rs 50 lakh increased to 28 per cent in September 2022 from 25 per cent in September 2021.
In September 2022, the category of sales in units larger than 1,000 square feet maintained its share of approximately 81 per cent of total house sales registrations. Homes in the size of 1,000 to 2,000 square feet accounted for 71 per cent of all sales during the period. Knight Frank India noted that the consumer trend of upgrading their home and moving into larger living quarters that began during the pandemic continued in September.
At the district level, the study shows that home sales registrations in the Medchal-Malkajgiri district were recorded at 43 per cent followed by Rangareddy district at 41 per cent. The share of Hyderabad district in total registrations was recorded at 15 per cent during the month.
The weighted average prices of transacted residential properties as per the registration data has grown by 15 per cent YoY in September 2022. Medchal- Malkagiri district saw the steepest rise of 21 per cent YoY in September 2022 indicating higher value homes were sold in this location during this period.
The price growth in the Hyderabad market has been strong in recent times. With higher value property being sold in September 2022, the weighted average price has shown an uptrend in all micro-markets of Hyderabad.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “the Hyderabad residential market, which had been largely resilient during the pandemic, saw a drop in registrations in 2022. While we predict some short-term reduction in activity due to rising house loan rates, the market’s latent demand is projected to keep it strong in the medium to long term, given general economic growth and rising income levels in Hyderabad.”
