Hyderabad real estate market: 5,411 residential properties worth ₹3279 crore registered in Jan 2024

Hyderabad witnessed an increase in registrations for properties priced at ₹1 crore and above; Weighted average price during January 2024 increased by 14% YoY

As many as 5,411 residential properties were registered in January 2024 in Hyderabad registering a marginal decline of 1% Year-on-Year (YoY). The total value of properties registered during the month stood at ₹3,279 crore which is higher by 24% YoY, indicating a movement towards sale of higher value homes, according to data shared by Telangana Registration and Stamps Department.

As many as 5,411 residential properties were registered in January 2024 in Hyderabad (Wikimedia commons)

The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddyand covers home sales pertinent to the primary and secondary real estate markets.

In January 2024, 47% properties in the price range of ₹25 to 50 lakh were the single largest category of property registrations in Hyderabad, while properties priced below ₹25 lakh constituted 15% of the total registration shrinking further in its share. Notably the share of sales registrations for properties costing ₹1 crore and above has increased significantly to 14% in January 2024, as compared with 8% in January 2023, showed an analysis by Knight Frank.

Properties registered in January 2024 were largely concentrated in the range of 1,000 - 2,000 sq ft, accounting for 71% of registrations. There was a moderation in demand for smaller homes (below 1,000 sq ft), with registrations for this category falling to 16% during January 2024 from 19% in January 2023. However, properties larger than 2,000 sq ft saw an increase in demand, with registrations rising to 13% during January 2024 from 9% in January 2023.

On a district-level, for the first time, Rangareddy emerged as the leading contributor to registrations in January 2024, capturing 43% of the total. Medchal-Malkajgiri, the former leader, came in second with 42%. Hyderabad district accounted for 15% of the total registrations in January 2024.

During January 2024, the weighted average prices of transacted residential properties witnessed a sharp YoY increase of 14%. Among the districts, Rangareddy experienced the sharpest increase of 12% YoY while Hyderabad and Medchal-Malkajgiri experienced rises of 11% and 5% YoY respectively.

Beyond the concentration of bulk transactions, homebuyers also bought plush properties, which are bigger in size, and which offer better facilities and amenities. Some of these deals have happened in markets like Rangareddy and Hyderabad wherein the properties were sized more than 3,000 sq ft and valued upwards of ₹4.2 crores. Banjara hills and Somajiguda in Central Hyderabad and Puppalaguda and Narsingi in the West experienced the sale of high value homes.

“The Hyderabad residential market displayed a promising start to 2024, characterised by a stable property registration momentum and a notable uptick in demand for high-quality homes in January. This is reflected not just in the growth in price level but also the aspirational drive of homebuyers towards upgrading to higher value properties. Developers, too, are actively keeping pace with these trends, demonstrating adaptability to meet the evolving preferences of discerning buyers,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Knight Frank’s analysis also showed that Hyderabad developers have placed a preference on introducing 3-BHK units during January 2024, showcasing a distinct predilection for more expansive residences. This strategic emphasis aligns seamlessly with the evolving tastes of homebuyers, who increasingly seek larger living spaces.