Hyderabad housing hype: Property purchases surge 21% YoY in Feb 2024

Hyderabad real estate: The real estate sector of Hyderabad continued its upward trajectory in February 2024 with the registration of a total of 6,938 residential properties, marking a substantial 21 per cent year-on-year (YoY) increase and a notable 27 per cent month-on-month (MoM) increase.

The total value of these registered properties amounted to Rs 4,247 crore, marking the highest value recorded in 32 months and reflecting a substantial 42 per cent YoY increase.

Luxury property uptick

There has been a notable shift towards the sale of higher value homes, with an increase observed in registrations for properties priced at Rs 1 crore and above. This segment saw a rise from 10 per cent in February 2023 to 14 per cent in February 2024.

Properties in the price category of Rs 25 – 50 lakh constituted the single largest category of registered properties, accounting for 45 per cent of total registrations. However, there was also an increase in the share of sales registrations for properties costing Rs 1 crore and above.
   
Properties registered in February 2024 were largely concentrated in the range of 1,000 - 2,000 sq ft, accounting for 71 per cent of registrations. There was also a notable increase in demand for properties larger than 2,000 sq ft.

Regional registration dominance

At the district-level, Rangareddy and Medchal-Malkajgiri emerged as the leading contributors to registrations, capturing 43 per cent each, while Hyderabad district accounted for 13 per cent of the total registrations.

The weighted average price of transacted residential properties witnessed a sharp YoY increase of 10 per cent in February 2024, indicating a steady rise in property prices across the market.

Developers in Hyderabad have shown a preference for introducing 3-bedroom units (3-BHK), aligning with the evolving preferences of homebuyers who increasingly seek larger living spaces.

Furthermore, some notable transactions included the sale of high-value homes in markets like Rangareddy and Hyderabad, with properties sized more than 3,000 sq ft and valued upwards of Rs 4.2 crore.

Consistent price surge

Shishir Baijal, Chairperson and MD, Knight Frank India, commented on the robust momentum in residential demand, emphasising the surge in demand for premium homes. He highlighted the consistent rise in prices since the onset of the pandemic and the responsiveness of developers to cater to the discerning preferences of buyers.

Overall, the report indicates a buoyant residential market in Hyderabad, characterised by increasing demand for higher-value properties and a preference for larger living spaces amongst homebuyers.