Knight Frank India sells 18,461 homes in Hyderabad

Hyderabad: Knight Frank India, the leading real estate consultancy in the country, noted that Greater Hyderabad saw a total of 18,461 sales registrations of homes in Q1 2022. This was lower by 19% compared to same time last year. The total value of properties transacted in the first quarter is estimated to be Rs 86,797 Million.

In March 2022, residential property registrations in Hyderabad stood at 5,707 units. This was a month–on–month (MoM) increase of 5% over February 2022. While there was some rationalization of home sales in February 2022, when analysed on a MoM basis, we can see demand/registrations returning, especially in the higher value categories. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Ranga Reddy and Sangareddy.

Some 75% of residential sales registered during March 2022 occurred in the under Rs five 5 mn ticket size category with sales of home in the price band of Rs 2.5 – 5 Mn (Rs 25 – 50 lakh) constituted 55%. Demand in the less than Rs Rs 2.5 mn (Rs 25 Lakh) ticket-size however weaken with its share constituting 20% as sales registrations in this category reduced to 1,119 units in March 2022 as against 3,473 units in March 2021. The share of sales registrations of all other ticket-size segments stayed stable or have grown marginally in YoY terms in March 2022.

The growth seen in the market shares of the mid and high ticket-size segments is also reflected in the share of sales in various unit size ranges. The share of sales in unit-sizes over 1,000 sq ft maintained its share at approximate 81% of all home sales registrations in March 2022. Of these, homes in the size of 1,000 – 2,000 sq. ft. consist of 73% of all sales registered during the period. The trend of homebuyers looking to upgrade and move into larger living quarters, that was sparked by the pandemic, continued to hold strong in March 2022 as well.

A district level study reveals that the Medchal-Malkajgiri’s share in total registrations improved to 47% in March 2022 from 40% in March 2021. The Hyderabad district’s share of the market observed a marginal 1% decline from 14% in March 2021 to 13% in March 2022. The weighted average transacted price of residential properties, as per the registration data, has grown by 10% YoY in March 2022. The area of Sangareddy saw the highest movement of 30% YoY in March 2022 indicating more higher value products were sold in this location. Price growth in the Hyderabad market has been strong in recent times. With more higher value property being sold in March 2022, the weighted average price has shown an uptrend in all micro–markets of Hyderabad.