In its latest assessment, Knight Frank India noted that Hyderabad recorded registrations of 6,493 residential properties in August 2023, noting a rise of 15% year-on-year (YoY) and 17% month-on-month (MoM), while the total value of properties registered during the month stood at Rs 3,461 crore (Cr) which has also increased by 22% YoY and 20% MoM.
The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
In August 2023, the highest proportion of property registrations in Hyderabad was in the price range of Rs 25 – 50 lakhs, accounting for 52% of the total registrations. Properties priced below Rs 25 lakhs constituted 16% of the total registration.
The share of sales registrations for properties with ticket-sizes of Rs 1 crore and above was 9% in July 2023, higher as compared with 8% in August 2022.
The demand for properties in August 2023 was largely concentrated in the range of 1,000-2,000 sq ft, with this size category accounting for 70% of registrations.
There was also an increase in demand for smaller homes (500 -1,000 sq ft), with registrations for this category rising to 16% during August 2023 from 15% in August 2022.
Notably properties larger than 2,000 sq ft also saw an increase in demand, with registrations rising to 11% during August 2023 from 9% in August 2022.
According to the study conducted at the district level, Medchal-Malkajgiri consistently maintains the top position with 43% of home sales registrations, while Rangareddy district closely follows with 39% of sales registrations.
In contrast, Hyderabad district accounted for 17% of the total registrations in August 2023.
During August 2023, the weighted average prices of transacted residential properties witnessed a YoY increase of 5.7%. Among the districts, Medchal-Malkajgiri district saw the sharpest price increase, at 6% YoY. Hyderabad and Rangareddy districts also saw price upticks of 4% and 2% respectively.
Residential sales in Hyderabad during August 2023 were mainly within properties sized 1,000-2,000 sq ft whereas the price range of Rs 25 – 50 lakhs, accounted for the highest registrations. However, beyond the concentration of bulk transactions homebuyers also bought plush properties, which are bigger in size and offer better facilities and amenities.
Some of these deals have happened in markets like Hyderabad and Rangareddy wherein the properties were sized more than 3,000 sq ft and valued upwards of Rs 4 crores.
Shishir Baijal, chairman and MD, Knight Frank India, said, “The housing market in Hyderabad is on a significant upswing, driven by a rising demand for improved living spaces, particularly in modern complexes equipped with numerous amenities. Additionally, the RBI’s decision to keep interest rates steady since April 2023 has further boosted buyer confidence.”