Hyderabad records over 26,000 property registrations in Jan-Apr’24: Report

May 17, 2024: Hyderabad saw 26,027 property registrations in the first four months of 2024, with a total value of Rs 16,190 crore, according to the latest report by Knight Frank India. This represents a 15% year-on-year (YoY) increase in the number of registrations and a 40% YoY increase in the total value compared to the same period last year. The surge in 2024 registrations has been driven by higher-value homes, especially those priced at Rs 1 crore and above, which saw a 92% YoY increase. Mid-segment homes, costing between Rs 50 lakh and Rs 1 crore, also saw a 47% YoY rise. Overall, the value of registered homes in all categories has increased, indicating a shift towards more expensive properties.

For April 2024, the total residential property registrations reached 6,578 units, marking a 46% YoY increase, with the value of these properties recorded at Rs 4,260 crore, also showing a significant 86% YoY rise. The Hyderabad residential market encompasses four districts, namely Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy, covering home sales relevant to both primary and secondary real estate markets.

In Hyderabad, there’s a noticeable trend towards higher-value homes, reflected in the increasing registrations of properties priced above Rs 50 lakh. Upon examination, homes valued below Rs 50 lakh experienced a 4% YoY decline in registrations. However, registrations for homes priced over Rs 1 crore surged by 92%, although from a comparatively lower base. What is particularly striking is the overall uptick in registration values across all segments. Notably, in the category of homes priced at Rs 50 lakh and below, which saw a 4% YoY decline in registrations on a year-to-date (YTD) assessment, there was a 17% YoY increase in value during the same period. This suggests that even within the affordable housing category, there’s a preference for more expensive properties. Furthermore, the value of homes priced above Rs 1 crore escalated by 135% YoY according to a YTD assessment.

Shishir Baijal, chairman and managing director, Knight Frank India, said, “The residential market in Hyderabad, like numerous other locations across India, is experiencing a noticeable shift towards high-end homes offering expansive spaces and premium amenities. Since the onset of the pandemic, prices have steadily risen, a trend that persisted through April 2024, as homebuyers consistently exhibited a preference for properties of higher value, particularly homes offering enhanced space and amenities. In response to these evolving market dynamics, developers are demonstrating agility and adaptability, aligning their offerings with the changing demands of buyers. Conversely, buyers are willing to pay a premium for an enhanced lifestyle.”

In April 2024, the majority of registered properties in Hyderabad were concentrated in the range of 1,000 to 2,000 square foot (sqft) for apartments, comprising 70% of all registrations. There was a decrease in demand for smaller homes (below 1,000 sqft), with registrations for this category declining to 16% in April 2024 from 20% in April 2023. Conversely, there was an increase in demand for larger properties exceeding 2,000 sqft, with registrations rising to 15% in April 2024 from 10% in April 2023.

At a district-level, Rangareddy emerged as the leading contributor to registrations in April 2024, capturing 45% of the market, a sharp increase as compared with the 39% recorded in April 2023. Medchal-Malkajgiri and Hyderabad district accounted for 39% and 16% respectively of the total registrations.

The weighted average price of transacted residential properties witnessed a sharp YoY increase of 17% during April 2024. Among the districts, Rangareddy and Medchal-Malkajgiri experienced the sharpest increase of 18% and 15% YoY respectively while Hyderabad and Sangareddy experienced rises of 7% and 2% YoY respectively.

Beyond the concentration of bulk transactions, homebuyers also bought plush properties which are bigger in size and offer better amenities. The top five deals for April 2024 have majorly happened in Hyderabad and one in Rangareddy wherein the properties were sized more than 3,000 sqft and valued upwards of Rs 4.2 crore. Further, four of the top five were in Central Hyderabad while one recorded in Puppalguda is in the West.

An in-depth analysis of the Hyderabad real estate market reveals significant trends in apartment launches during the first four months of 2024. Catering to homebuyers’ preferences, developers have shown a marked inclination towards the construction of 2-bedroom (2-BHK) and 3-bedroom (3-BHK) units. The launch of 2-BHK apartments has increased from 27% in the previous year period to 31%. Meanwhile, the launches in the 3-BHK category too have increased from 56% in the previous year to 59% during Jan-Apr 2024, maintaining its consistent appeal, capturing the majority share of the market. These trends underscore the dynamic nature of the real estate market, reflecting shifts in consumer demand and developer strategy. It will be interesting to note the launch strategy adopted by developers in the coming months.