Hyd property registrations grew 25% in Oct

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

Hyderabad: Hyderabad has recorded a rise of 25 per cent in registrations of residential properties at 5,787 units in October 2023, over 4,634 units in the same month last year, says a report. As per the latest report from Knight Frank India, the total value of properties registered during the month increased 41 per cent at Rs 3,170 crore against Rs 2,252 crore in the same month a year-ago.

The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy. During October 2023, the weighted average prices of transacted residential properties witnessed a YoY increase of 6.8 per cent. Among the districts, Hyderabad, Medchal-Malkajgiri and Rangareddy all experienced a 6 per cent increase in property prices respectively.

In October 2023, the highest proportion of property registrations was in the price range of Rs 25 – 50 lakh, accounting for 50 per cent of the total registrations. While the properties priced below Rs 25 lakh constituted 16 per cent of the total registrations which has fallen from the 22 per cent share recorded during October 2022. The share of sales registrations for properties with ticket-sizes of Rs 1 crore and above was 10 per cent in October 2023, higher as compared with 8 per cent 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 per cent of registrations. There was a moderation in demand for smaller homes (500 -1,000 sq ft), with registrations for this category falling to 16 per cent during October 2023 from 21 per cent in October 2022. However, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 12 per cent during October 2023 from 10 per cent in October 2022.

According to the study conducted at the district level, Medchal-Malkajgiri consistently maintains the top position with 43 per cent of home sales registrations, while Rangareddy district closely follows with 42 per cent of sales registrations. In contrast, Hyderabad district accounted for 14 per cent of the total registrations in October 2023.

Residential sales in Hyderabad during October 2023 were mainly within properties sized 1,000-2,000 sq ft whereas the price range of Rs 25 – 50 lakh, 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.

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 crore.

In line with the homebuyer preferences in the market, development activity has also been significantly biased 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.

Shishir Baijal, CMD, 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.”

Reserve Bank’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.