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HomeHyderabadResidential market in Hyderabad declining for a number of reasons

Residential market in Hyderabad declining for a number of reasons

The latest Knight Frank India assessment noted that Hyderabad recorded 4,313 residential property registrations in July 2022, a 20% decline month over month (MoM). There were fewer transactions over Rs 50 lakh and above in the last month, contributing to the slowdown.

A combination of adverse sentiments toward major investment decisions in Ashada Masam and rising interest rates caused the decline. There was a decline of 26% in the value of properties transacted in July 2022, as well.

The city has sold 40,897 residential units worth Rs 20,023 crore since the beginning of the year. Hyderabad consists of four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

In July 2022, homes priced between Rs 25 and 50 lakhs accounted for 56% of all residential sales, up from 34% in July 2021.

However, demand for tickets less than Rs 25 lakh weakened with its share dropping to 18% from 35% a year ago. In July 2022, 26% of sales registrations for properties with ticket sizes of Rs 50 lakh and above were recorded, down from 31% in July 2021.

During the period, 72% of all sales were for homes between 1,000 and 2,000 square feet. Homebuyers who were prompted by the pandemic to upgrade and move into larger living quarters continued to do so in July 2022.

Based on a district-level study, the Medchal-Malkajgiri district accounted for 41% of home sales registrations, followed by the Rangareddy district with 38%. Hyderabad district’s share of total registrations was 16% in July 2022.

According to registration data, the weighted average price of transacted residential properties increased by 9% YoY in July 2022. In July 2022, the Sangareddy district saw the steepest growth of 27% YoY, indicating higher value homes were sold here. Hyderabad’s price growth remained strong across all micro markets.

In July 2022, Hyderabad’s residential market, which has been largely resilient during the pandemic, showed some decline in activity due to a variety of factors, including an increase in prices and an upward revision in home loan rates, said Shishir Baijal, Chairman & Managing Director at Knight Frank India.

 

 

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