According to the latest recent assessment, Knight Frank India revealed that Hyderabad recorded registrations of 4,872 residential property units in January 2023, with the total value of properties registered in the month standing 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.
In the past, the Hyderabad residential market has shown erratic trends, with a few months each year recording lower activity. This is due to two major factors. First, buyer behaviour is unpredictable due to price sensitive characteristics.
As a result of buyers flocking to the market when they are presented with lucrative deals, months coinciding with key events such as salary revisions, festive seasons that bring in rebates, and so on see a higher volume of activity. Second, because home sales are not recorded at the time of purchase, if the majority of sales in a month occur in under construction properties with longer lead times to delivery, the cumulative volume of registrations tends to be lower that month.
In the last few quarters, the city has also seen an increase in average prices, which may have contributed to the slowdown in overall sales momentum.
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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 a rise from a share of 39% in January 2022. Demand in 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.
The share of registrations in the unit category of properties sized 500 – 1000 square feet increased to 17% in January 2023, up from 15% in January 2022, while the share of properties sized 1,000-2,000 square feet remained the highest, with a total share of 71% in January 2023, slightly lower than 72% in January 2022.
The study found that home sales registrations were highest in the Medchal-Malkajgiri district (41%), followed by Rangareddy (35%). In January 2023, the Hyderabad district had a 15% share of total registrations.
The weighted average prices of transacted residential properties have risen 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.
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