Hyderabad’s Residential Real Estate Market Registers Strong Performance, Records 7% Annual Growth in Transactions
The residential real estate market in Hyderabad has shown remarkable resilience, proving its strong performance in the September quarter. Despite a slight dip in sequential growth, there has been a significant annual increase of 7% in registered residential transactions from July to September 2024. According to the data supplied by Square Yards, a total of 19,527 transactions were recorded in the Inspector General of Registration (IGR) during this period, compared to 18,314 transactions in the same period last year.
Increase in Registered Sales Value and Average Home Sales Value
To add to the positive outlook, the total registered sales value in the September 2024 quarter soared to Rs. 11,718 crore, demonstrating a notable 20% year-on-year increase. Moreover, the average registered home sales value reached Rs. 60 lakh, reflecting an impressive 13% annual growth during the quarter.
Aparna Constructions and Estates Tops Transactions with Projects Offering Excellent Connectivity
In terms of individual developer performance within the Hyderabad residential market, Aparna Constructions and Estates maintained its leadership position, registering the highest number of transactions. They sold a total of 625 units, amounting to Rs. 510 crore in sales value. Similarly, prominent names like Prestige and Brigade have also secured their positions in the top 10 list of developers. Prestige Group, for instance, achieved a sales value of Rs. 334 crore across 214 residential transactions.
Both Aparna Constructions and Prestige Group experienced robust demand for projects that offer excellent connectivity to the Outer Ring Road (ORR). Aparna Zenon in Khajaguda and Prestige Tranquil in Kokapet emerged as the top performers in the September quarter, leading in both transaction volume and sales value in Hyderabad.
Growth in Mid-to-High Price Segment
The mid-to-high price segment is witnessing significant growth in Hyderabad’s real estate market. Properties valued at Rs. 1 crore and above accounted for 13% of the market in the September 2024 quarter. This represents an increase from 9% during the same period last year. Within this segment, homes priced between Rs. 1-2 crores held the largest share at 11%, marking an increase from 7% in the July-September 2023 period.
Inclination towards Larger Homes and Rising Demand for 3 BHK and Above Configurations
Hyderabad’s homebuyers continue to show a preference for larger homes, as indicated by the highest volume of transactions. 44% of transactions fall within the 1,000-1,500 sq. ft. range. Notably, properties sized between 1,500–3,000 sq. ft. accounted for the second-largest share of 37%, up from 31% last year, signaling an increasing demand for 3 BHK and above configurations.
Micro-Market Trends: Western Suburbs Begin to Outrank other Regions
When examining the micro-market trends in Hyderabad, it becomes apparent that the Western suburbs are the most active region, accounting for 45% of registered transactions in the September quarter. The Eastern suburbs follow distantly with a 17% share. In terms of sales value, the Western micro-market dominates with a whopping 56% share, surpassing the Central and Eastern suburbs, capturing only 12% and 11% respectively. Moreover, the Western suburbs also record the highest average transaction value at Rs. 76 lakhs as they outperform counterparts in the Central suburbs.
Expansion of the Western Suburbs and Rising Interest from Developers
Drilling down into the Western suburbs’ progress, the geographical shift in the market becomes evident. The growth, once concentrated around HITEC City, has spread outward towards the Nehru Outer Ring Road (ORR). This region now offers seamless connectivity not only to the city’s IT hubs but also to Hyderabad’s international airport. Developers, investors, and end-users are showing increased interest due to the availability of sizeable land parcels in addition to excellent infrastructure. Another factor fueling interest is the upcoming commercial/ IT hub of Kokapet Neopolis.
In conclusion, Hyderabad’s residential real estate market has demonstrated its resilience and captured impressive growth in the September quarter. Robust transaction numbers, rising sales value, and developers’ success stories have showcased the city’s strong foothold in the real estate sector. With surging demand for larger homes and a growing inclination towards the mid-to-high price segment, the future looks promising for the Hyderabad real estate market, specifically in the Western suburbs fueled by growing connectivity and strategic development projects.
