Hyderabad Real Estate Market Shows Marginal Decline in Residential Property Registrations
According to a recent report by Knight Frank India, the residential property market in Hyderabad witnessed a marginal decline in registrations in January 2024. A total of 5,411 residential properties were registered during the month, marking a 1% decline compared to the previous year.
Shift Towards Sale of Higher Value Homes
While the number of registrations decreased, the total value of properties registered during the month increased by 24% year-on-year. The total value stood at INR 3,279 crore, indicating a shift towards the sale of higher value homes in the city.
Changes in Property Price Segments
In terms of price segments, properties in the range of INR 25-50 lakhs accounted for the largest category of registrations, representing 47% of the total registrations in January 2024. On the other hand, properties priced below INR 25 lakhs constituted only 15% of the registrations, shrinking further in their share. Interestingly, the share of sales registrations for properties costing INR 1 crore and above significantly increased to 14% in January 2024, compared to 8% in January 2023.
Shift in Demand for Property Sizes
The report also highlighted a shift in demand for property sizes. Properties in the range of 1,000 – 2,000 sq ft accounted for 71% of the registrations in January 2024, showcasing their popularity among homebuyers. On the other hand, there was a moderation in demand for smaller homes below 1,000 sq ft, with registrations falling to 16% from 19% in January 2023. Interestingly, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 13% during January 2024 from 9% in January 2023.
District-wise Breakdown of Registrations
In terms of district-wise registrations, there was a shift in the leading contributor. Rangareddy emerged as the top district for registrations in January 2024, capturing 43% of the total. Medchal-Malkajgiri, the former leader, came in second with 42% of the registrations, while Hyderabad district accounted for 15% of the total registrations during the month.
Sharp YoY Increase in Property Prices
The report also highlighted a significant year-on-year increase in the weighted average prices of transacted residential properties. In January 2024, the prices witnessed a sharp 14% increase compared to the previous year. Rangareddy experienced the highest increase of 12% year-on-year, followed by Hyderabad and Medchal-Malkajgiri with rises of 11% and 5% respectively.
Shift Towards Plush Property Purchases
Apart from bulk transactions, there has been an increasing trend in the purchase of plush properties offering better facilities and amenities. Some of these high-value deals happened in markets like Rangareddy and Hyderabad, where the properties were sized over 3,000 sq ft and valued at INR 4.2 crores or more. Prime locations like Banjara Hills and Somajiguda in Central Hyderabad, and Puppalaguda and Narsingi in the West have witnessed the sale of such high-value homes. Overall, the residential real estate market in Hyderabad is undergoing changes in terms of price segments, property sizes, and district-wise preferences. The increase in value of registered properties indicates a possible shift towards luxury homes, attracting homebuyers looking for high-end amenities and facilities. This trend offers a glimpse into the evolving preferences and aspirational needs of the buyers in Hyderabad.
