Hyderabad homes see highest price rise in Q3
The city residential market witnesses a marginal 5% Y-o-Y rise in sales at 8,325 units in Q3 of 2023, says Knight Frank India report
image for illustrative purpose
Among eight major residential markets in India, Hyderabad has recorded the highest price appreciation of 11 per cent YoY during Q3 (July – September) 2023 for which the average price level was recorded at Rs 5,518 per sq ft, says property consultant Knight Frank India in its latest report - ‘India Real Estate Q3 2023’.
According to the report, Hyderabad residential market has witnessed a marginal 5 per cent year-on-year (Y-o-Y) rise in total sales at 8,325 units in the quarter the new launches stood at 11,034 units with no increase during the period.
During Q3 2023, about 52 per cent of the residential sales were in the ticket size of Rs 1 crore and above. The ticket size between Rs 50 lakh to Rs 1 crore and below Rs 50 lakh constituted 39 per cent and 9 per cent respectively in the market.
As per the report, the leading eight residential markets in India continued to show strong growth momentum. During Q3 2023, Indian markets saw a surge in demand with sales of 82,612 residential units recording a growth of 12 per cent YoY. In volume terms Q3 2023 recorded a six-year high in quarterly sales volumes.
Shishir Baijal, CMD of Knight Frank India, said, “Residential sales continue to gain momentum, reaching multi-year highs. Although inventory levels have seen a significant rise due to developers launching projects to cater to this robust demand, the overall market health is improving, with strong sales velocity. Elevated interest rates and prices have had little impact on higher-ticket-size homebuyers, but the affordable segment has been severely affected, necessitating further interventions to stimulate demand and enhance development viability.”
He further said, “While we celebrate overall residential market growth, concerns arise, notably in the affordable segment, which has seen a steady decline in Q3 2023. Economic turbulence in recent quarters hit lower-income consumers, affecting segments like rural consumption and lower end of passenger vehicles sales. This decline in affordable housing segment is worrisome because it’s been the largest buying segment, crucial for long-term industry growth. Prolonged slowdown could harm the real estate sector in the long-term. Therefore, stakeholders must reconsider strategies to revive the affordable segment and maintain its momentum.”
