As per a latest report from Knight Frank India, Hyderabad has recorded registrations of 5,787 residential properties in October 2023, observing a rise of 25% year-on-year (YoY). According to the global real estate consultancy, the total value of properties registered during the month stood at Rs 3,170 crore (Cr), which too has increased by 41% YoY indicating a movement towards sale of higher value homes.
Residential sales during October 2023 were mainly within properties sized 1,000-2,000 sq ft whereas the price range of Rs 25 – 50 lakhs, accounted for the highest registrations. However, beyond the concentration of bulk transactions homebuyers also bought plush properties, which are bigger in size and which offer better facilities and amenities.
The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
Some of these deals have happened in markets like Hyderabad and Rangareddy wherein the properties were sized more than 3,000 sq ft and valued upwards of Rs 4.5 crores.
In October 2023, the highest proportion of property registrations in Hyderabad was in the price range of Rs 25 – 50 lakhs, accounting for 50% of the total registrations. Properties priced below Rs 25 lakhs constituted 16% of the total registration which has fallen from the 22% share recorded during October 2022.
The share of sales registrations for properties with ticket-sizes of Rs 1 crore and above was 10% in October 2023, higher as compared with 8% in October 2022.
Registered properties in October 2023 were concentrated in the range of 1,000-2,000 sq ft, with this size category accounting for 69% of registrations.
There was a moderation in demand for smaller homes (500 -1,000 sq ft), with registrations for this category falling to 16% during October 2023 from 21% in October 2022. However, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 12% during October 2023 from 10% in October 2022.
According to the study conducted at the district level, Medchal-Malkajgiri consistently maintains the top position with 43% of home sales registrations, while Rangareddy district closely follows with 42% of sales registrations.
In contrast, Hyderabad district accounted for 14% of the total registrations in October 2023.
During October 2023, the weighted average prices of transacted residential properties witnessed a YoY increase of 6.8%.
Among the districts, Hyderabad, Medchal-Malkajgiri and Rangareddy all experienced a 6% increase in property prices respectively.
In the context of demand analysis, it is noteworthy to examine the launch trends in the Hyderabad real estate market. In line with the homebuyer preferences in the market, development activity has also been significantly biassed toward 3 BHKs with 2BHK units following suit.
Developers in Hyderabad have notably prioritised the introduction of 3BHK units, indicating a clear inclination towards larger residences. This strategic focus appears to resonate with the changing preferences of homebuyers who are increasingly seeking more extensive living spaces, likely to accommodate growing families, while also accommodating those with smaller households or those prioritising affordability who opt for 2BHK units, the report noted.
Shishir Baijal, chairman and MD, Knight Frank India, said, “The Hyderabad housing market is currently experiencing a significant surge in demand. This demand is centred on the desire for improved residential environments with apartment complexes which offer a wide range of amenities. RBI’s decision to keep the interest rates stable since April 2023 has significantly boosted the confidence of homebuyers. This optimistic market sentiment is clearly reflected in the increasing number of property developments. Developers are nimbly adapting to meet the evolving needs of their discerning clientele.”