The Hyderabad real estate market was buoyant as it bid farewell to an eventful 2022 and entered the new year with a more assured and positive outlook.
The city’s real estate success story continues to make rapid strides, unaffected by any impacting factors and displaying an uncanny resilience. Even as popular residential markets continue to expand rapidly without signs of exhaustion, new areas in the suburbs and beyond have begun to show more promise for development.
Prospective property seekers remain active in the Hyderabad residential market, expressing keen interest not only in developed property zones but also in new and emerging ones.
The west zone has unquestionably been the undisputed heart and soul of the city’s real estate success story. It has enticed not only local property buyers, but also young investors from all over the country, who have fallen under its spell. Such is its charm that the NRI community, not only from Telangana but also from other states, continues to explore the possibility of investing and acquiring property in the western parts of the city.
The vicinities of western Hyderabad, both nearby and further away, are adding to the core’s momentum. In fact, Tellapur, which was little known until recently, is now bustling with construction activity and metamorphosing with towers rising high.
According to Knight Frank India’s 18th edition of its flagship half-yearly report, India Real Estate: 2022, which was released this week, Tellapur, Kollur, Gandipet, and Narsingi saw the most development activity last year.
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According to the Knight Frank annual summary, Hyderabad’s residential market maintained its strong sales momentum in 2022, with the city recording a 28% year-on-year increase in housing sales volumes, accounting for 31,046 units. According to the report, this is the highest level of sales in the city since 2011.
New launches increased significantly in 2022, with 43,847 units added, and developers launched new projects in the city during the year, capitalising on the shift in homebuyers’ sentiments.
Meanwhile, the region’s average weighted prices increased by 6% year on year.
“Buyer sentiment continued to remain strong despite a sharp rise in interest rates during H2 2022.” Knight Frank said in its half-year report, which presented a comprehensive analysis of residential and office market performance across eight major cities from July to December 2022.
According to it, Hyderabad’s residential market sold 16,353 units in H2 2022, representing a 32% increase over the same period the previous year. Total launches increased by 18% to 22,491 in six months. And 61% of these units were launched in West Hyderabad.
According to Knight Frank, West Hyderabad continued to have strong demand, accounting for 62% of all sales in H2 2022, as buyers preferred to be close to the city’s commercial core and office centres, Hitec City, Gachibowli, and Nanakramguda.
At the same time, North Hyderabad saw a marginal increase in its share of total sales from 18% in July-December 2021 to 19% in the same period in 2022.
Surprisingly, the city has options for every need and budget. In the second half of 2022, Hyderabad remained a strong market for mid-ranged housing, with the mid segment of Rs 50 lakh to Rs 1 crore accounting for 45 percent.
Simultaneously, the ticket size segment of Rs 1 crore and above gained traction, increasing its share of sales from 19% in the first half of 2018 to 22% in the second half of 2022. “The need to upgrade the family’s primary dwelling to meet the requirements of work and education from home has resulted in a substantial change in demand for ticket sizes higher than Rs 50 lakh,” Knight Frank report observed.
Samson Arthur, Senior Branch Director – Hyderabad at Knight Frank India, said, “Despite significant obstacles from geopolitical developments and an increase in house mortgage rates over the past few quarters, the city’s residential sector is nevertheless seeing an increase in registrations. Although the more sensitive lower ticket segment is impacted, demand for higher value properties is still strong, preserving the city’s upbeat outlook.”
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