Hyderabad Property Market Registers Strong Growth in September 2023

The Hyderabad property market has witnessed robust growth in September 2023, with a 30% year-on-year increase in residential property registrations, totaling 6,185 properties. The total value of properties registered during the month reached Rs 3,378 crore, marking a substantial 42% year-on-year increase, signaling a trend toward the sale of higher-priced homes.

The Hyderabad residential market covers four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

Property Registrations in Hyderabad

In September 2023, the majority of property registrations in Hyderabad were in the price range of Rs 25-50 lakhs, constituting 51% of the total registrations. Properties priced below Rs 25 lakhs made up 15% of the total registrations, while the share of registrations for properties with ticket sizes of Rs 1 crore and above was 9%, a slight increase from 8% in September 2022.

Property Sizes

The registered properties in September 2023 were predominantly in the 1,000-2,000 sq ft range, accounting for 71% of registrations. Demand for smaller homes (500-1,000 sq ft) moderated, dropping to 14% in September 2023 from 16% in September 2022. Conversely, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 11% in September 2023, up from 9% in September 2022.

District-wise Analysis

At the district level, Medchal-Malkajgiri led with 45% of home sales registrations, followed closely by Rangareddy district with 41% of sales registrations. In contrast, Hyderabad district accounted for 14% of the total registrations in September 2023.

Price Trends

In August 2023, the weighted average prices of transacted residential properties saw a year-on-year increase of 6.4%. Among the districts, Hyderabad witnessed the steepest price rise at 14% year-on-year, followed by Medchal-Malkajgiri and Rangareddy at 5% and 3%, respectively.

The Changing Property Landscape

Residential sales in Hyderabad during September 2023 were primarily within properties sized 1,000-2,000 sq ft, with the Rs 25-50 lakhs price range seeing the highest number of registrations. However, in addition to bulk transactions, homebuyers also invested in larger properties that offer more space and amenities. Some of these transactions involved properties over 3,000 sq ft valued at over Rs 5 crores.

The report highlights that property developers in Hyderabad are focusing on offering 3 BHK units, aligning with changing consumer preferences for more spacious living environments. This shift towards larger residences is indicative of accommodating growing families and addressing the needs of smaller households or those prioritizing affordability with 2 BHK units.

Shishir Baijal, Chairman and MD of Knight Frank India, noted, "The Hyderabad housing market is currently undergoing a notable upswing, primarily driven by a surge in demand within the city. Notably, this demand is centered around the desire for improved residential environments that offer contemporary housing communities with a wide range of amenities."

He further emphasized the positive influence of stable interest rates from the Reserve Bank of India since April 2023 and the resilience of the Indian economy, which has boosted the confidence of potential homebuyers. This optimistic market sentiment is evident in the increasing number of property developments as developers adapt to cater to the evolving preferences of their clientele.