Hyderabad: Around 6,938 residential properties were registered in February 2024 registering a sharp increase of 21 per cent year-on-year (YoY) and 27 per cent month-on-month (MoM), as per the latest report from global real estate consultant Knight Frank India.
The total value of properties registered during the month stood at Rs 4,247 crore, which was higher by 42 per cent YoY and 29 per cent MoM, indicating a movement towards sale of higher value homes.
In February 2024, 45 per cent properties in the price category of Rs 25 – 50 lakh making it the single largest category of property registered in Hyderabad, while properties priced below Rs 25 lakh constituted 14 per cent of the total registration shrinking further in its share.
Notably the share of sales registrations for properties costing Rs 1 crore and above has increased to 14 per cent in February 2024, as compared with 10 per cent in February 2023.
Properties registered in February 2024 were largely concentrated in the range of 1,000 - 2,000 sq ft, accounting for 71 per cent of registrations. There was a moderation in demand for smaller homes (below 1,000 sq ft), with registrations for this category falling to 16 per cent during February 2024 from 20 per cent in February 2023. However, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 13 per cent during February 2024 from 10 per cent in February 2023.
On a district-level, Rangareddy and Medchal-Malkajgiri emerged as the leading contributors to registrations in February 2024, capturing 43 per cent respectively. Hyderabad district accounted for 13 per cent of the total registrations in February 2024.
During February 2024, the weighted average price of transacted residential properties witnessed a sharp YoY increase of 10 per cent. Among the districts, Medchal-Malkajgiri experienced the sharpest increase of 15 per cent YoY while Rangareddy and Hyderabad experienced rises of 5 per cent and 2 per cent YoY respectively.
Beyond the concentration of bulk transactions homebuyers also bought plush properties, which are bigger in size, and which offer better facilities and amenities. Some of these deals have happened in markets like Rangareddy and Hyderabad wherein the properties were sized more than 3,000 sq ft and valued upwards of Rs 4.2 crores. Banjara hills and Somajiguda in Central Hyderabad and Puppalaguda in the West experienced the sale of high value homes.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Residential demand maintains its robust momentum, characterized by a notable surge in demand for premium homes as evidenced in February 2024. Prices have consistently risen since the onset of the pandemic, and February has faithfully adhered to this trend, with homebuyers persistently gravitating towards higher-value properties. Simultaneously, developers are actively aligning themselves with evolving market dynamics, demonstrating flexibility and responsiveness to cater to the discerning preferences of buyers.”
An analysis probing into the launch trends within the Hyderabad real estate market is crucial. Keeping homebuyers’ preference in mind, there is a notable bias in development activity towards 3-bedroom units (3-BHK). Hyderabad developers have placed a preference on introducing 3-BHK units, showcasing a distinct predilection for more expansive residences. This strategic emphasis aligns seamlessly with the evolving tastes of homebuyers, who increasingly seek larger living spaces.
