Registration of homes in Hyderabad dips 18% in Oct

Hyderabad: Hyderabad witnessed 18 per cent decline in registration of residential units, where 4,597 units of residential properties were registered in October against 5,633 registrations last year, reports Knight Frank India in its latest assessment. The total value of properties declined 9 per cent at Rs 2,237 crore in October 2022 against Rs 2,468 crore during same month last year.

Since the beginning of the year, the city has observed registration of 56,003 residential units with a total worth of Rs 27,509 crore, compared to registrations of 67,685 residential units, amounting to Rs 30,108 in similar period last year, which is a 9 per cent decline in registrations value.

Residential units in the price band of Rs 25 – Rs 50 lakh constituted 51 per cent of the total registrations in October, which is an increase from a share of 40 per cent year-on-year (YoY). Demand in the less than Rs25 lakhs ticket-size, weakened with a share of 22 per cent compared to 35 per cent a year ago. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

Shishir Baijal, Chairman and MD, Knight Frank India, said: "The rise in home loan interest rate in the last three quarters along with strong headwinds caused by the global geo-political tensions has started affecting the consumers. The Hyderabad market is also impacted, though it continues to remain appealing for end users with demand for larger homes remaining promising. While the lower ticket segment is affected, we expect that the higher value homes will continue to see momentum in the coming months keeping the outlook for the city optimistic."

Samson Arthur, Senior Branch Director, Knight Frank India, said: "Hyderabad residential sector grew stronger in 2021. The factors like supportive socioeconomic environment, advanced infrastructure and a business-friendly administration although continued through this year despite a certain slowdown in sales."

At district level, the study shows that home sales registrations in the Medchal-Malkajgiri district was recorded at 46 per cent followed by Rangareddy district at 36 per cent. The share of Hyderabad district in total registrations was recorded at 14 per cent. Price growth in the Hyderabad market has been strong in recent times. The weighted average prices of transacted residential properties as per the registration data has grown by 12 per cent YoY, whereas Sangareddy district saw the steepest rise of 37 per cent, indicating more higher value homes were sold in this location during this period.