Property Registrations in Hyderabad Show a 25% Year-on-Year Surge in October 2023: Report

Hyderabad witnessed a remarkable 25% year-on-year surge in residential property registrations in October 2023, totaling 5,787 properties with an overall value of 3,170 crore (Cr), marking a substantial 41% YoY increase. This uptick signifies a notable shift towards higher-priced dwellings. The residential market in Hyderabad is segmented into four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

The majority (50%) of property registrations in October 2023 fell within the 25 – 50 lakh price range, while properties under 25 lakh constituted 16%, experiencing a decrease from the 22% recorded in October 2022. Registrations for properties valued at 1 crore and above accounted for 10%, reflecting an increase from 8% in October 2022.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, noted, “The Hyderabad housing market is witnessing a substantial surge in demand driven by the desire for enhanced residential environments offering diverse amenities. The stability of interest rates by the Reserve Bank of India since April 2023 has significantly boosted homebuyer confidence, evident in the growing number of property developments. Developers are adeptly adapting to meet the evolving needs of their discerning clientele.”

In terms of property size, the 1,000-2,000 sq ft bracket dominated registrations, constituting 69% of the total. Smaller houses (500-1,000 square feet) experienced reduced demand, dropping to 16% in October 2023 from 21% in October 2022. Conversely, demand for residences larger than 2,000 square feet increased, accounting for 12% in October 2023, up from 10% in October 2022.

A district-level survey revealed Medchal-Malkajgiri as the frontrunner with 43% of house sales registrations, followed by Rangareddy district with 42%. The Hyderabad district contributed 14% of all registrations in October 2023.

The weighted average price of traded residential properties exhibited a 6.8% YoY increase in October 2023. Hyderabad, Medchal-Malkajgiri, and Rangareddy districts all witnessed a 6% rise in property prices.

October 2023 residential sales in Hyderabad predominantly featured houses sized 1,000-2,000 sq ft, with the majority falling in the 25-50 lakh price category. Alongside bulk transactions, buyers also invested in luxurious residences with larger sizes and superior amenities, particularly in areas like Hyderabad and Rangareddy, where properties exceeded 3,000 square feet and were valued at over 4.5 crore.

Analyzing launch patterns in the Hyderabad real estate market reveals a pronounced preference for 3 BHK flats, aligning with homebuyer preferences. Developers are strategically focusing on three-bedroom houses to cater to the growing demand for larger living spaces, accommodating expanding families, while also providing options for smaller households or cost-conscious buyers opting for 2 BHK homes.