Home registrations decline 8% in Hyderabad in March

Hyderabad: Nearly about 6,416 residential properties were registered in Hyderaba ing a decline of 8 per cent year-on-year (YoY) on account of a high base, says a report. The total value of properties registered during the month stood at Rs 4,039 crore, which was higher by 12 per cent YoY indicating a movement towards sale of higher value homes.

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.

As per the latest report from property consultant Knight Frank India, properties in the price range of Rs 25-50 lakh accounted for 45 per cent of all registrations in Hyderabad during March 2024, making it the most common price category.

Properties priced below Rs 25 lakh however declined in its share making up 14 per cent of the total registrations However, the proportion of sales registrations for properties priced at Rs 1 crore and above rose to 16 per cent in March 2024, a significant increase from 10 per cent in March 2023 also pushing up the weighted average in the city.

Properties registered in March 2024 were largely concentrated for apartments in the range of 1,000 - 2,000 sq ft, accounting for 70 per cent of registrations. There was a moderation in demand for smaller homes (below 1,000 sq ft) with registrations for this category falling to 16 per cent during March 2024 from 20 per cent in March 2023. However, properties larger than 2,000 sq ft saw an increase in demand with registrations rising to 15 per cent during March 2024 from 10 per cent in March 2023.

On a district-level, Rangareddy emerged as the leading contributor to registrations in March 2024, capturing 46 per cent of the market, a sharp increase as compared with the 34 per cent recorded in March 2023. Medchal-Malkajgiri and Hyderabad district accounted for 40 per cent and 14 per cent respectively of the total registrations in March 2024.

During March 2024, the weighted average price of transacted residential properties witnessed a sharp YoY increase of 12 per cent. Among the districts, Medchal-Malkajgiri experienced the sharpest increase of 13 per cent YoY while Rangareddy and Hyderabad experienced rises of 8 per cent and 3 per cent 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 March 2024 have all happened in Rangareddy wherein the properties were sized more than 3,000 sq ft and valued upwards of Rs 5.3 crore. Further, four of the top five were in Kondapur and while one was recorded in Kokapet in the West.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The residential market in Hyderabad continues to show robust demand, particularly for high-end homes. Since the pandemic began, prices have been on a steady upward trajectory, a trend that continued through March, with homebuyers consistently favouring properties of higher value that offer more space and amenities. In response to these market shifts, developers are showing agility and adaptability, aligning their offerings with the changing tastes and preferences of discerning buyers.”