February 12, 2024: A total of 5,411 residential properties were registered in January 2024 compared to 5,454 registrations in 2023, a marginal decline of 1% Year-on-Year (YoY), according to the latest report by property consultancy firm Knight Frank India. The total value of properties registered during the month stood at Rs 3,279 crore which is higher by 24% YoY, indicating a movement towards sale of higher value homes. 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.
The report highlighted that in January 2024, 47% of properties in the price range of Rs 25 lakh to Rs 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. The report mentioned that the share of sales registrations for properties costing Rs 1 crore and above has increased significantly to 14% in January 2024, as compared with 8% in January 2023.
According to the report, properties registered in January 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 January 2024 from 19% in January 2023. However, properties larger than 2,000 sqft saw an increase in demand, with registrations rising to 13% during January 2024 from 9% in January 2023.
On a district-level, for the first time, Rangareddy emerged as the leading contributor to registrations in January 2024, capturing 43% of the total. Medchal-Malkajgiri, the former leader, came in second with 42%. Hyderabad district accounted for 15% of the total registrations in January 2024.
During January 2024, the weighted average prices of transacted residential properties witnessed a sharp YoY increase of 14%. Among the districts, Rangareddy experienced the sharpest increase of 12% YoY, while Hyderabad and Medchal-Malkajgiri experienced rises of 11% and 5% YoY, respectively.
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 and Narsingi in the West experienced the sale of high-value homes.
Shishir Baijal, chairman and managing director, Knight Frank India, said, “The Hyderabad residential market displayed a promising start to 2024, characterised by a stable property registration momentum and a notable uptick in demand for high-quality homes in January. This is reflected not just in the growth in price level but also the aspirational drive of homebuyers towards upgrading to higher value properties. Developers, too, are actively keeping pace with these trends, demonstrating adaptability to meet the evolving preferences of discerning buyers.”
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