Tag: Residential

Hyderabad: In the latest assessment, Knight Frank India noted that Hyderabad recorded registrations of 4,872 units of residential properties in January 2023 while the total value of properties registered in month stood at Rs 2,494 crore. There has been a moderation in registration of home sales in January to the tune of 35% YoY while collections from registration have reduced for January by 26% year on year. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

The Hyderabad residential market has in the past demonstrated irregular trends with a few months in each year recording reduced activities. This has been for two main reasons firstly, the buyer behaviour is unpredictable due to its price sensitive characteristics. Thus, buyers flock the market when they are presented with lucrative deals, therefore months coinciding with key events like salary revisions, festive seasons that bring in rebates etc. see higher volume of activities. Secondly, sales of homes are not registered at the time of purchase, therefore if the majority sales in a month happens in under construction properties with longer lead time to delivery, the cumulative volume of registrations tend to be lower that month. The city has also seen a rise in average prices in the last few quarters which may has also contributed to the slowdown in overall sales momentum.

Registrations in residential units in the price band of INR 2.5 – 5 Mn (INR 25 – 50 lakhs) remained highest constituting 54% of the total registrations in January 2023, which is an increase from a share of 39% in January 2022. Demand in the less than INR 2.5 mn (INR 25 Lakhs) ticket-size weakened with its share constituting 18% compared to 36% a year ago. Greater demand for larger ticket size homes remained evident as the cumulative share of sales registrations for properties with ticket-sizes of INR 5 Mn and above (> INR 50 lakhs) increased to 28% in January 2023 from 25% in January 2022.

In January 2023, the share of registrations in unit category of properties sized 500 – 1000 square feet increased to 17% compared to 15% observed in January 2022 while share of properties sized 1,000-2,000 square feet remained highest with a total share of 71% in January 2023, slightly lower than 72% witnessed in January 2022.

At district level, the study shows that home sales registrations in the Medchal-Malkajgiri district was recorded at 41% followed by Rangareddy district at 35%. The share of Hyderabad district in total registrations was recorded at 15% in January 2023.

The weighted average prices of transacted residential properties have increased by 16% YoY in January 2023. Sangareddy district saw the steepest rise of 48% YoY in January 2023 indicating more higher value homes were sold in this location during this period. Price growth in the Hyderabad market has been strong in recent times.