Hyderabad’s residential property market sustained its strong momentum this calendar year with property registrations rising 15% and total value of transactions surging 40% in the first four months of 2024 compared to a year earlier propelled by buoyant demand for premium homes.
A total of 26,027 properties were registered during the period with a total value of Rs 16,190 crore, real estate consultancy Knight Frank said in a report.
Surge in registrations was driven by higher-value homes, especially those priced at Rs 1 crore and above, which soared 92% year-on-year (y-o-y). Mid-segment homes, costing between Rs 50 lakhs and Rs 1 crore, jumped 47%.
Overall, the value of registered homes across categories rose this year underscoring a shift towards more expensive properties.
In addition to bulk transactions, homebuyers also picked high-end properties, which are more extensive and offer better amenities. Among the top five deals in April, four happened in Hyderabad and one in Rangareddy. Such properties exceeded 3,000 sq ft and were priced at more than Rs 4.2 crore.
“The sales momentum has continued since the launch of our project earlier this year, with an overall positive trend and increased traction. As the festive season approaches, we anticipate a rise in NRI footfall, which constitutes a significant portion of buyers in technologically advanced Hyderabad,” said Praveer Shrivastava, senior vice president, residential, Prestige Group.
For homes valued at Rs 50 lakh and below, registrations fell 4% y-o-y during January to April though the value of deals increased 17%, suggesting that even within the affordable housing category, buyers are preferring more expensive properties, the report said.
The Hyderabad residential market encompasses the four districts of Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.
At a district level, Rangareddy emerged as the leading contributor to registrations in April, capturing 45% of the market, up from 39% a year earlier. Medchal-Malkajgiri and Hyderabad districts accounted for 39% and 16% respectively.
“The residential real estate market in Hyderabad has exhibited strong demand, especially for luxury homes. In light of the market dynamics, developers are demonstrating flexibility and responsiveness by adjusting their offerings to cater to the evolving preferences of discerning buyers,” said Vineet Surana, managing partner of Rishabha Constructions.
Weighted average price of transacted residential properties rose 17% y-o-y in April. Among districts, Rangareddy and Medchal-Malkajgiri reported the biggest increases of 18% and 15% respectively, while Hyderabad and Sangareddy recorded growth of 7% and 2% y-o-y respectively.
In line with customer preferences, developers are showing a marked inclination towards building 2-BHK and 3-BHK units. Launches of 2-BHK apartments increased from 27% in the previous year period to 31% in the first four months of 2024 while that of 3-BHK homes rose from 56% to 59% during January to April 2024.
