Residential properties worth Rs 2,237 cr registered

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Hyderabad recorded registrations of 4,597 units of residential properties with a total worth of Rs 2,237 crore, Knight Frank India said in its latest assessment report released here on Thursday.

Since the beginning of the year (Jan-Oct 2022), the city has observed registration of 56,003 residential units with a total worth of Rs 27,509 crore compared to registrations of 67,685 residential units amounting to Rs 30,108 crore in similar period last year, the report stated.

The Hyderabad residential market includes four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
Residential units in the price band of Rs 2.5-5 million constituted 51 per cent of the total registrations in October, an increase from a share of 40 per cent in October 2021.

Demand in the less than Rs 2.5 mn ticket-size, however, weakened with its share constituting 22 per cent compared to 35 per cent a year ago, the report said.

Greater demand for larger ticket size homes remained evident as the cumulative share of sales registrations for properties with ticket-sizes of Rs 5 million and above increased to 27 per cent in October 2022 from 25 per cent in October 2021.

In October 2022, the share of registrations in the unit category of properties sized 500-1,000 square feet increased to 21 per cent compared to 17 per cent observed in October 2021 while properties sized 1,000 square feet or higher witnessed a dip in share from 81 per cent in October 2021 to 76 per cent in October 2022.

At district level, the study shows that home sales registrations in the Medchal-Malkajgiri district was recorded at 46 per cent followed by Rangareddy district at 36 per cent. The share of Hyderabad district in total registrations was recorded at 14 per cent in October 2022.

Sangareddy district saw the steepest rise of 37 per cent Y-o-Y in October 2022 indicating higher value homes were sold in this location during this period. Price growth in the Hyderabad market has been strong in recent times.

With higher value property being sold in October 2022; the weighted average price has shown an uptrend in all micro-markets of Hyderabad.

Shishir Baijal, Chairman and Managing Director, Knight Frank India, said: “The rise in home loan interest rate in the last three quarters along with strong headwinds caused by the global geo-political tensions has started affecting the consumers.

“The Hyderabad market is also impacted, though it continues to remain appealing for end users with demand for larger homes remaining promising.

“The city, which saw a significant rise in demand until mid of 2022, has seen a drop in registration in October 2022. While the lower ticket segment is affected, we expect that the higher value homes will continue to see momentum in the coming months keeping the outlook for the city optimistic.”