Residential real estate in Hyderabad reported a decline on an annual basis in January, an industry survey revealed. The region clocked a 1 per cent fall in residential unit registrations in January on an annual basis, the study found.
The registrations of residential properties stood at 5,411 units in January 2024 in Hyderabad, against 5,454 units clocked in the same month a year earlier, the survey by real estate consultant, Knight Frank, stated. The study covered transactions in both primary, i.e. first sale, and secondary or resale markets, reported PTI.
The Hyderabad residential market included in the study comprised four districts, namely, Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy. The data showed that the overall value of units registered during the reviewing month jumped 24 per cent to Rs 3,279 crore, on a year-on-year (YoY) basis. This growth showed that higher-value homes saw increased sales.
As of January 2024, residential properties in the price range of Rs 25-50 lakhs accounted for 47 per cent of the registrations. Properties priced below Rs 25 lakh made up 15 per cent of the overall units registered. The report noted that properties in the Rs 1 crore and above price range accounted clocked 14 per cent of the overall sales registrations in January 2024, up from 8 per cent share in the same month a year earlier.
A majority 71 per cent of registrations came from properties in the range of 1,000-2,000 square feet during the reporting period. The demand for smaller homes, under 1,000 square feet, declined to 16 per cent during January 2024, from 19 per cent demand in the corresponding period last year. At the same time, larger properties above 2,000 square feet logged an increase in interest, with registrations climbing from 9 per cent in January 2023, to 13 per cent in January 2024.
At the district level, Rangareddy accounted for 43 per cent of registrations in the reviewing month, dominating the market, followed by Medchal-Malkajgiri with 42 per cent share in the market. The Hyderabad district contributed to 15 per cent of the overall registrations in January 2024.
Commenting on the findings, Shishir Baijal, Chairman and MD, Knight Frank India, said, “During January 2024, the weighted average prices of transacted residential properties witnessed a sharp annual increase of 14 per cent. Among the districts, Rangareddy experienced the sharpest increase of 12 per cent year-on-year (YoY), while Hyderabad and Medchal-Malkajgiri experienced an increase of 11 per cent and 5 per cent YoY, respectively. 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.”
Baijal noted that customers are increasingly moving towards higher-value properties and developers are working to match the demand and keep up with the changing preferences of the buyers.
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