Hyderabad Residential property Update January & February 2023

Homes worth of 2,422 & 2,816 crore registered in Hyderabad in January & February 2023

4,872 apartment units registered in January 2023 of which 54% of all homes registered were in the price range of 2.5 to 5 Mn. And 71 % of all registered homes were between 1,000 to 2,000 sq ft.

Higher Demand for mid and high ticket size homes persisted with home worth of 5 Mn or more accounting for 28% share in January 2023 up from 25% in January 2022. As well as registrations of residentials units in the Rs 25- 50 lakh bracket remained the highest constituting 51% of the total registrations

In the latest assessment, Knight frank India noted that Hyderabad recorded registrations of 4,872 units & 5, 872 units in the month of Jan 2023 and Feb 2023 respectively, there has been moderation in registration of home sales in the month of Jan to the tune of 34% YoY while collection has reduced for January by 26%, The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Ranga Reddy & Sanga Reddy

While the registration of home sales eased in February by 3 per YoY as well as revenue collection decreased by 1% over the same time period. At the district level registrations of home sales in medchal- Malkangiri district was recorded at 43% followed by Ranga Reddy district at 39%

The Interesting aspect of the market is the momentum in the mid income category of Rs. 2.5 to 5 Mn 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.

The Hyderabad residential market has in the past demonstrated irregular trends with few months in each year record reduced activities. This has been for two main reasons, firstly buyer behavior is unpredictable due to its price sensitive characteristics, thus 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 etc. see higher volumes of activities, secondly, sales of homes are not registered at the time of purchase, therefore if the majority sales in the month happens in under construction properties with longer lead time to delivery, the cumulative volumes of registrations tend to be lower that month, the city has also seen rise in the average prices in the last few quarters which may also contributed to slowdown in overall sales momentum.

Registration Split By Unit Size

In January 2023, the share of registrations in unit category of properties sized 500 – 1000 square feet increased to 17% compared to 15% January 2022 while share of properties sized 1,000-2,000 square feet remained highest with a total share of 71% in January 2023, slightly lower

Sales Split by District

Transacted price by District (YoY%)

The weighted average price of transacted residential properties has increased by 16% YoY in January 2023. Sanga Reddy District saw the steepest rise of 48% YoY in Jan 2023 indicating more values 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 this location during this period, Price Growth in Hyderabad market has been strong in recent times with higher value property being sold in January 2023

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