Hyderabad has recorded new home registrations of 5,568 units in January 2022, noted Knight Frank India, which is the country’s leading real estate consultancy.
The third wave of the pandemic resulted in a drop of 27 percent Y-o-Y over January 2021 in the home registrations in Hyderabad. Regular market operations such as site visits and registration of documents were adversely affected due to mobility restrictions during the month. 71% of all homes registered in the month of January were below INR 5 million (mn) or INR 50 lakhs. A total INR 2,695 Cr worth of residential properties was transacted in the Hyderabad residential market consisting of four districts – Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
“Hyderabad was the best performing residential market in terms of primary sales, among the top eight in India during 2021. However, the drop in registration activity caused by the mobility restrictions due to the third wave of COVID-19 in January this year have impacted sales across many markets in India, including Hyderabad. We expect that sales registration volumes in the market should regain lost ground once normal market operations resume, given that other market indicators such as prices continue to see steady growth despite the impact of the pandemic”, said Shishir Baijal, Chairman and Managing Director, Knight Frank India
Lion’s share of sales below INR 50 lakhs
Compared to 75 percent in January 2021, 71 percent of residential sales registered during January 2022 have occurred for less than INR 5 mn ticket size. This is traditionally the segment that constitutes the highest sales registrations in Hyderabad. The segment’s share has receded by 9 percentage points from 41 percent of total sales registrations in January 2021 to 32 percent in January 2022, accounting for the lower volume of sales registrations in January 2022. Within the segment, demand for less than INR 2.5 mn ticket size remains a little low, as was seen in 2021. Nevertheless, sales registrations for all other ticket-size segments remain stable in Y-o-Y terms in January 2022. INR 2.5-5 mn ticket size segment’s share grew the most, from 34 percent in January 2021 to 39 percent in January 2022, far exceeding its annual share of 36 percent in 2021 and 31 percent in 2020.
Record sales growth in units over 1,000 sq ft
The mid and high-ticket-size segments saw stability in their market shares while significant growth was noticed in the sales of all unit sizes measuring over 1,000 sq ft for Hyderabad in Y-o-Y terms in January 2022. Sparked by the pandemic, the homebuyer trend of looking to upgrade and moving into larger living quarters also continued to hold strong during January 2022.
Lowest sales drop, highest registrations in Rangareddy
Sales in the Rangareddy district dropped only by 7 percent compared to the total sales drop by 27 percent Y-o-Y during January 2022 for all four districts. In terms of total sales, the district accounted for 48 percent of the residential units registered during the month, compared to 38 percent in 2021.
Highest average transacted price in Medchal-Malkajgiri
During the pandemic lows of 2020, prices remained resilient in Hyderabad, growing steadily in 2021. The weighted average transacted price of residential properties, as reflected by the registration data, has grown by 7.8 percent Y-o-Y in January 2022, and have grown the most in the Medchal-Malkajgiri district by 8.7 percent in during the period.
