Greater Hyderabad saw a total of 18,461 sales registration of homes in Q1 2022, which 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, according to Knight Frank India.
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,” Knight Frank India noted.
The Hyderabad residential market includes four districts, namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
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75% of residential sales registered during March 2022 occurred in the under Rs 5 mn ticket size category with sales of home in the price band of Rs 2.5 – 5 mn (Rs 25 – Rs 50 lakh) constituted 55%. Demand in the less than 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.
REGISTRATION AND SALES IN HYDERABAD
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.
Commenting on the same, Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “For the past several years, Hyderabad had one of the strongest price momentum which in turn depicts demand strength. This was also visible through most of the lockdown, when the market registered significantly higher number of properties. Latent demand for properties as well as other factors like security in employment, growth in house-hold incomes and savings as well as home loan rates continue to remain attractive for end-users to continue their home purchases.”