Property registrations in Hyderabad fall 34% to 4,872 units

Hyderabad: Hyderabad recorded 35 per cent year-on-year (YoY) decline in registrations of residential properties to 4,872 units in January 2023 while the total value of properties registered in month decreased 26 per cent YoY at Rs 2,422 crore, says Knight Frank India in its latest assessment report.

The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy. In the past, the city has demonstrated irregular trends with a few months in each year recording reduced activities. This has been for two main reasons.

The buyer behaviour is unpredictable due to its price sensitive characteristics. The buyers flock the market when they are presented with lucrative deals, therefore months coinciding with key events like salary revisions, festive seasons that bring in rebates see higher volume of activities.

Secondly, sales of homes are not registered at the time of purchase, therefore if the majority sales in a month happen in under construction properties with longer lead time to delivery, the cumulative volume of registrations tend to be lower that month.

The city has also seen a rise in average prices in the last few quarters which may has also contributed to the slowdown in overall sales momentum. Samson Arthur, Senior Branch Director, Knight Frank India said, "Thanks to its developing socioeconomic environment, state-of-the-art infrastructure, and varied workforce, Hyderabad's residential market has a huge housing market potential despite the pressure emanating from rising interest rates. The city's upbeat outlook is amply demonstrated by the surge in high-value home registrations throughout the course of the year."

Registrations in residential units in the price band of Rs 25 – 50 lakh remained highest constituting 54 per cent of the total registrations in January 2023, which is an increase from a share of 39% in January 2022. Demand in the less than Rs 25 lakh ticket-size weakened with its share constituting 18 per cent compared to 36 per cent a year ago.

Greater demand for larger ticket size homes remained evident as the cumulative share of sales registrations for properties with ticket-sizes of Rs 50 lakh and above increased to 28 per cent in January 2023 from 25 per cent in January 2022.

In January 2023, the share of registrations in unit category of properties sized 500 – 1,000 square feet increased to 17 per cent compared to 15 per cent observed in January 2022 while share of properties sized 1,000-2,000 square feet remained highest with a total share of 71 per cent in January 2023, slightly lower than 72 per cent witnessed in January 2022.

At district level, the study shows that home sales registrations in the Medchal-Malkajgiri district was recorded at 41 per cent followed by Rangareddy district at 35 per cent. The share of Hyderabad district in total registrations was recorded at 15 per cent in January 2023.

The weighted average prices of transacted residential properties have increased by 16 per cent YoY in January 2023. Sangareddy district saw the steepest rise of 48 per cent YoY in January 2023 indicating more higher value homes were sold in this location during this period. Price growth in the Hyderabad market has been strong in recent times. With higher value property being sold in January 2023.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, "The interesting aspect of the market is the momentum in the mid income category has remained stable in absolute terms. Most buyers in this category are usually salaried professionals. Therefore, the stability in this segment indicates that, despite factors like rise in prices and interest rate hikes, end users have the financial confidence to make long term commitments."