Hyderabad records 6,938 residential property registrations in Feb’24: Report

Hyderabad recorded 6,938 residential property registrations in February 2024, registering a sharp increase of 21% Year-on-Year (YoY) and 27% Month-on-Month (MoM), according to the latest report from Knight Frank India. The total value of properties registered during the month stood at Rs 4,247 crore, which was higher by 42% YoY and 29% MoM, indicating a movement towards sale of higher value homes.

In February 2024, 45% of the registered properties fell in the price category of Rs 25–50 lakh, making it the single largest category of property registered in Hyderabad, while properties priced below Rs 25 lakh constituted 14% of the total registration, shrinking further in its share. Notably, the share of sales registrations for properties costing Rs 1 crore and above has increased to 14% in February 2024, as compared with 10% in February 2023.

Ticket size share of registrations

Properties registered in February 2024 were largely concentrated in the range of 1,000- 2,000 square foot (sqft), accounting for 71% of registrations. There was a moderation in demand for smaller homes (below 1,000 sqft), with registrations for this category falling to 16% during February 2024 from 20% in February 2023. However, properties larger than 2,000 sqft saw an increase in demand, with registrations rising to 13% during February 2024 from 10% in February 2023.

Registration split by unit size

The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy and covers home sales pertinent to the primary and secondary real estate markets. On a district-level, Rangareddy and Medchal-Malkajgiri emerged as the leading contributors to registrations in February 2024, capturing 43% each. Hyderabad district accounted for 13% of the total registrations in February 2024.

Registration split by district

During February 2024, the weighted average price of transacted residential properties witnessed a sharp YoY increase of 10%. Among the districts, Medchal-Malkajgiri experienced the sharpest increase of 15% YoY while Rangareddy and Hyderabad experienced rises of 5% and 2% YoY respectively.

Transacted price by district

Beyond the concentration of bulk transactions homebuyers also bought plush properties, which are bigger in size, and which offer better facilities and amenities. Some of these deals have happened in markets like Rangareddy and Hyderabad wherein the properties were sized more than 3,000 sqft and valued upwards of Rs 4.2 crore. Banjara hills and Somajiguda in Central Hyderabad and Puppalaguda in the West experienced the sale of high value homes.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “Residential demand maintains its robust momentum, characterised by a notable surge in demand for premium homes as evidenced in February 2024. Prices have consistently risen since the onset of the pandemic, and February has faithfully adhered to this trend, with homebuyers persistently gravitating towards higher-value properties. Simultaneously, developers are actively aligning themselves with evolving market dynamics, demonstrating flexibility and responsiveness to cater to the discerning preferences of buyers.”

An analysis probing into the launch trends within the Hyderabad real estate market is crucial. Keeping homebuyers’ preference in mind, there is a notable bias in development activity towards 3-bedroom units (3-BHK). Hyderabad developers have placed a preference on introducing 3-BHK units, showcasing a distinct predilection for more expansive residences. This strategic emphasis aligns seamlessly with the evolving tastes of homebuyers, who increasingly seek larger living spaces.

Type of apartment launches