January 10, 2024: Hyderabad witnessed registrations of 7,254 residential properties in December 2023, the highest monthly registrations in 2023, according to the latest report from Knight Frank India. The city recorded a rise of 15% Year-on-Year (YoY) and 16% month-on-month (MoM).
The report stated that the total value of properties registered during the month stood at Rs 4,191 crore, a growth of 32% YoY and 12% MoM, reflecting a movement towards sale of higher value homes. With respect to the full year performance, 71,912 residential properties were registered during 2023, registering a rise of 5% YoY while registration value stood at Rs 38,395 Cr, an increase of 14% YoY. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddyand covers home sales pertinent to the primary and secondary real estate markets.
Properties that saw maximum registrations
In December 2023, 47% properties in the price range of Rs 25 – 50 lakh were the single largest category of property registrations in Hyderabad, while properties priced below Rs 25 lakh constituted 15% of the total registration shrinking further in its share. It has to be noted that there was an increase of registrations for properties in the price of Rs 75 lakh to Rs 1 crore from 7% in December 2022 to 9% in December 2023. The share of sales registrations for properties costing Rs 1 crore and above has also increased to 12% in December 2023, as compared with 9% in December 2022.
Further, the report highlighted that properties registered in December 2023 were largely concentrated in the range of 1,000 – 2,000 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 December 2023 from 19% in December 2022. However, properties larger than 2,000 sqft witnessed an increase in demand, with registrations rising to 12% during December 2023 from 11% in December 2022.
Registrations split by district
The district-level study conducted in December 2023 revealed that Medchal-Malkajgiri and Rangareddy emerged as the primary contributors, with 45% and 40% of the total registrations respectively. Hyderabad district accounted for 14% of the total registrations in December 2023.
During December 2023, the weighted average prices of transacted residential properties witnessed a YoY rise of 7.6%. Among the districts, Hyderabad experienced the sharpest rise of 13% YoY while Medchal-Malkajgiri and Rangareddy saw 6% and 5% YoY growth respectively.
Transactions during December 2023
Residential sales in the city in December 2023 were mostly within properties sized 1,000 – 2,000 sqft whereas the price range of Rs 25 lakh to Rs 50 lakh accounted for the highest registrations. However, beyond the concentration of bulk transactions homebuyers also bought plush properties, which were bigger in size, and which offered better facilities. Some deals have happened in markets like Hyderabad wherein the properties were sized more than 3,000 sqft and valued upwards of Rs 4.8 crore.
Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “Throughout the year, the Hyderabad residential market has exhibited consistent growth in sales. This positive market outlook is reflected in the increasing number of property developments, highlighting developers’ adaptability to meet the changing preferences of discerning buyers. The impact is not only seen in a noticeable price increase but also in an increased demand for high-quality homes with comprehensive amenities.”
Trends in apartment launches
The report stated that, considering homebuyers’ preference in mind, there is a notable bias in development activity towards 3BHK units closely followed by 2BHK units. Hyderabad developers have placed a preference on introducing 3BHK 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. Noteworthy is the discernible inclination of developers in 2023 towards launching larger-sized units, particularly in the 4BHK category, with a notable increase from 5% in 2022 to 9% in 2023.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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