Hyderabad sees 30% YoY surge in property registrations worth Rs 3,378 crore

Hyderabad's real estate market witnessed a 30 per cent year-on-year increase in property registrations during September 2023, according to a report from Knight Frank India. The city recorded a surge in property registrations, totalling 6,185 residential properties.

The total value of the registered properties in the same month amounted to Rs 3,378 crore, marking a 42 per cent year-on-year increase. This rise suggests a growing demand for more expensive homes in the city.

Diverse price ranges

The majority of registrations (51 per cent) fell in the price range of Rs 25 - 50 lakh, while 15 per cent were below Rs 25 lakh. Moreover, 9 per cent of properties with ticket sizes of Rs 1 crore and above were registered in September 2023, compared to 8 per cent in the same month of the previous year.

As much as 71 per cent of registered homes in September 2023 were in the size range of 1,000 - 2,000 square feet. Demand for smaller homes (500 - 1,000 sq ft) decreased from 16 per cent in September 2022 to 14 per cent in September 2023. In contrast, properties larger than 2,000 sq ft saw an increase in demand, rising from 9 per cent in September 2022 to 11 per cent in September 2023.

District-wise breakdown

Medchal-Malkajgiri led in terms of property registrations, accounting for 45 per cent of home sales registrations, closely followed by Rangareddy with 41 per cent. Hyderabad district contributed 14 per cent to the total registrations in September 2023.

In August 2023, the weighted average price of residential properties increased by 6.4 per cent year-on-year. Hyderabad recorded the sharpest price increase at 14 per cent, followed by Medchal-Malkajgiri at 5 per cent, and Rangareddy at 3 per cent.

Shift in preferences

The report highlights a shift in homebuyer preferences towards larger residences. Developers in Hyderabad have focused on introducing 3 BHK units, reflecting the increasing demand for more extensive living spaces. 2 BHK units have also gained popularity, catering to a diverse range of buyers.

Shishir Baijal, Chairperson and MD, Knight Frank India, noted that the growth in Hyderabad's housing market is driven by a surge in demand for contemporary housing communities with various amenities. Stable interest rates and the resilience of the Indian economy have further boosted buyer confidence, leading to an increase in property developments that cater to evolving consumer preferences.