As per the latest report from Knight Frank India, 6,416 residential properties were registered in Hyderabad in March 2024 noting a decline of 8% year-on-year (YoY) on account of a high base. The total value of properties registered during the month stood at Rs 4,039 crore (Cr) which was higher by 12% YoY indicating a movement towards the 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.
Price Category
In March 2024, properties in the price range of Rs 25 – 50 lakhs accounted for 45% of all registrations in Hyderabad, making it the most common price category.
Properties priced below Rs 25 lakhs however declined in their share making up 14% of the total registrations However, the proportion of sales registrations for properties priced at Rs 1 crore and above rose to 16% in March 2024, a significant increase from 10% 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% of registrations. There was a moderation in demand for smaller homes (below 1,000 sq ft) with registrations for this category falling to 16% during March 2024 from 20% in March 2023. However, properties larger than 2,000 sq ft saw an increase in demand with registrations rising to 15% during March 2024 from 10% in March 2023.
Rangareddy’s trend
On a district level, Rangareddy emerged as the leading contributor to registrations in March 2024, capturing 46% of the market, a sharp increase as compared with the 34% recorded in March 2023. Medchal-Malkajgiri and Hyderabad district accounted for 40% and 14% 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%. Among the districts, Medchal-Malkajgiri experienced the sharpest increase of 13% YoY while Ranga Reddy and Hyderabad experienced rises of 8% and 3% YoY respectively.
Beyond the concentration of bulk transactions, homebuyers also bought plush properties that are bigger 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 crores. Further, four of the top five were in Kondapur and while one was recorded in Kokapet in the West.
Shishir Baijal, chairman and MD, 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”.
Supply of 2-BHK Apartments Increased
An in-depth analysis of the Hyderabad real estate market reveals significant trends in apartment launches during the first quarter of 2024. Catering to homebuyers’ preferences, developers have shown a marked inclination towards the construction of 2-bedroom (2-BHK) and 3-bedroom (3-BHK) units.
The launch of 2-BHK apartments has increased sharply, escalating from 23% in the previous year period to 32%. Meanwhile, the 3-BHK category, maintaining its consistent appeal, captured the majority share of the market.
Contrastingly, the introduction of 1-BHK, 2.5-BHK, 3.5-BHK, 4-BHK, and 5-BHK apartments experienced a downturn.
Notably, the 2.5-BHK, 3.5-BHK, and 5-BHK categories saw their launches dwindle to zero in Q1 2024. These trends underscore the dynamic nature of the real estate market, reflecting shifts in consumer demand and developer strategy. It will be interesting to note the launch strategy adopted by developers in the coming months.
Comments
0 comment