A recent report by Knight Frank India reveals that Hyderabad’s real estate market witnessed a significant surge in residential property registrations in February 2024. With a year-on-year increase of 21% and a month-on-month increase of 27%, this surge reflects a promising trend for the city’s housing sector.
Higher Value Homes Gain Momentum in Hyderabad Real Estate
The total value of properties registered during the month reached INR 4,247 crore, indicating a substantial rise of 42% compared to the same period last year. This increase points towards a shift in the market’s preference for higher value homes, as buyers show increased interest in such properties.
Price Ranges and Distribution of Registered Properties
In terms of price ranges, the report reveals that properties priced between INR 25 lakhs and 50 lakhs dominated the market, constituting 45% of the total registrations in Hyderabad. Meanwhile, properties priced below INR 25 lakhs accounted for only 14% of the registrations, indicating a shrinking market share. An interesting insight is that the share of registrations for properties priced at INR 1 crore and above saw notable growth, increasing from 10% in February 2023 to 14% in February 2024.
Preference for Medium-Sized Homes
Further analysis of the registration data reveals that residential properties ranging between 1,000 and 2,000 sq ft witnessed the highest demand, making up 71% of all registrations. Interestingly, the demand for smaller homes below 1,000 sq ft experienced a decline, accounting for only 16% of registrations in February 2024, compared to 20% in the previous year. Conversely, properties larger than 2,000 sq ft saw an increase in popularity, representing 13% of the registrations, up from 10% in February 2023.
Rangareddy and Medchal-Malkajgiri Lead Property Registrations
On a district level, Rangareddy and Medchal-Malkajgiri emerged as the top contributors to the increased property registrations in February 2024, capturing 43% each. Hyderabad district, on the other hand, accounted for 13% of the total registrations during the same period.
Price Appreciation in different districts of Hyderabad
The report also highlights the upward trend in property prices across different districts of Hyderabad. During February 2024, the weighted average price of transacted residential properties witnessed an impressive year-on-year increase of 10%. Specifically, Medchal-Malkajgiri recorded the highest surge with a notable increase of 15% YoY, while Rangareddy and Hyderabad experienced rises of 5% and 2% respectively. The surge in residential property registrations, particularly in higher value property segments, suggests a growing demand for quality homes in Hyderabad. The preference for medium-sized homes further indicates the changing preferences of the city’s homebuyers. With Rangareddy and Medchal-Malkajgiri leading the way in registrations, real estate developers and investors now have a clearer picture of the most active districts in Hyderabad’s property market. As property prices continue to appreciate, the future looks promising for Hyderabad’s real estate sector.
