In February 2022, the monthly residential property registrations in Hyderabad reached 5,146 units, worth Rs 2,722 crore. According to Knight Frank India, houses between 1,000 and 2,000 square feet represented nearly 74% of all sales in February.
The Hyderabad residential market consists of four districts: Medchal-Malkajgiri, Rangareddy, and Sangareddy. The increase in registration charges has had the greatest impact on the less than Rs 25 lakh category, with sales registrations in this category falling significantly to 844 units in February 2022, compared to a much stronger 2,888 units in February 2021.
In February 2022, approximately 69% of residential transactions registration occurred in the under Rs 50 lakh ticket size category, compared to 76% in February 2021. Inside this category, demand in the less than Rs 25 lakh ticket size remained weak at only 16% in February 2022 compared to 42 per cent in February 2021.
ALSO READ: Hyderabad emerges as preferred market for real estate
In February 2022, the share of sales registrations for all other ticket-size segments remained unchanged or increased marginally year on year terms. The share of the Rs 25-50 lakh ticket size segment increased the greatest, from 34% in February 2021 to 52% in February 2022.
Trend in unit size
The growth exhibited in the market shares of the mid and high ticket-size segments is also reflected in the share of sales in various unit size ranges. In February 2022, sales in all unit sizes larger than 1,000 square feet represented 85% of all home sales registrations.
Homes ranging in size from 1,000 to 2,000 square feet accounted for 74% of all sales recorded during the period. The trend of homebuyers looking to upgrade and move into larger living quarters, triggered by the pandemic, is expected to continue in February 2022.
District of Hyderabad
While total sales in the four districts fell by 25% year on year terms in February 2022, a district-level analysis shows that the Hyderabad district had a 64% year on year reduction in sales registrations during the period. Even in terms of total sales, the district accounted for 10% of the residential units registered during the month, compared to 20% a year before.
According to registration data, the weighted average transacted price of residential properties increased by 21% year on year in February 2022.
While price growth in the Hyderabad market has been substantial in previous months, the exceptional growth in February could be attributed to a sharp drop in the share of sales registered in the under Rs 25 lakh segment.
Hyderabad has been among the strongest residential markets in the country in terms of sales price growth for the previous few years, said Shishir Baijal, CMD of Knight Frank India.
However, sales registration momentum was hampered in the first two months of 2022 due to operational restrictions created by the Omicron virus in January and increased property registration fees in February, he said.
ALSO READ: Web Werks to establish a data centre in Hyderabad worth Rs 500 crore
“While this slowdown is noticeable, particularly in light of the shift in the behaviour of the price-sensitive homebuyer in the less than Rs 25 lakh category, we do not see it as an immediate cause for concern and expect the pace of registrations to normalise over the course of the year.”
(This story has been sourced from a third-party syndicated feed, agencies. Raavi Media accepts no responsibility or liability for the dependability, trustworthiness, reliability, and data of the text. Raavi Media management/ythisnews.com reserves the sole right to alter, delete or remove (without notice) the content at its absolute discretion for any reason whatsoever.)
