Rise in Hyd Residential Properties: Knight Frank India report

In the latest report by Knight Frank India, Hyderabad experienced a significant surge in its residential property market in September 2023. The city recorded the registration of 6,185 residential properties during the month, marking a substantial 30% year-on-year (YoY) increase. The total value of these registered properties amounted to ₹3,378 crore, representing a substantial 42% YoY rise. This suggests a growing trend in the sale of higher-priced homes in Hyderabad.

The Hyderabad residential market encompasses four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, stated, “The Hyderabad housing market is currently undergoing a notable upswing, primarily driven by a surge in demand within the city. Notably, this demand is centered around the desire for improved residential environments that offer contemporary housing communities with a wide range of amenities.”

In September 2023, the majority of property registrations in Hyderabad fell within the price range of ₹25 – 50 lakh, accounting for 51% of the total registrations. Properties priced below ₹25 lakh constituted 15% of the total registrations. Moreover, the share of sales registrations for properties with ticket sizes of ₹1 crore and above was 9% in September 2023, which is higher compared to 8% in September 2022.

Property registrations in September 2023 were most concentrated in the 1,000-2,000 sq ft size category, making up 71% of all registrations. Demand for smaller homes (500-1,000 sq ft) moderated, with registrations dropping to 14% during September 2023 from 16% in September 2022. In contrast, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 11% during September 2023 from 9% in September 2022.

At the district level, Medchal-Malkajgiri consistently held the top position with 45% of home sales registrations, while Rangareddy district closely followed with 41% of sales registrations. In contrast, Hyderabad district accounted for 14% of the total registrations in September 2023.

The residential sales in Hyderabad during September 2023 were predominantly within properties sized 1,000-2,000 sq ft, with the price range of ₹25 – 50 lakh accounting for the highest number of registrations. However, in addition to these bulk transactions, there were also purchases of luxurious properties with larger sizes and better facilities and amenities. Some of these transactions occurred in markets like Hyderabad and Rangareddy, where properties exceeded 3,000 sq ft in size and were valued at over ₹5 crore.

In August 2023, the weighted average prices of transacted residential properties saw a YoY increase of 6.4%. Among the districts, Hyderabad witnessed the sharpest price increase at 14% YoY, followed by Medchal-Malkajgiri and Rangareddy at 5% and 3%, respectively.