Hyderabad Property Market Soars in Q2 2024 with ₹12,000 Crore in Registrations: Square Yards Report
Hyderabad's real estate market continues to soar, with property registrations touching nearly ₹12,000 crore in the second quarter of 2024, according to a recent report by proptech firm Square Yards. This remarkable growth is a testament to the city's burgeoning demand for larger and more expensive homes, driven by a combination of factors including the expanding IT sector, strategic urban development, and a strong investment climate.
Significant Increase in Property Registrations
During the April-June period of 2024, property registrations in Hyderabad surged by 11% year-on-year, reaching a total of 19,574 transactions valued at ₹11,953 crore. This uptick underscores a robust housing market, bolstered by a 27% annual growth in the registered home sales value and a 4% sequential growth in the number of transactions. This growth trajectory reflects a sustained demand for residential properties in Hyderabad, supported by both end-users and investors.
Rising Home Values
The average registered home sales value in Hyderabad has climbed to ₹61 lakh, reflecting a 15% annual increase. This rise in home values signifies a shift towards higher-value transactions. Properties priced between ₹50 lakh to ₹1 crore now represent 28% of the transactions, up from 21% the previous year. Moreover, transactions for properties priced between ₹1 crore to ₹2 crore nearly doubled, rising to 14% from 8% during the same period. This trend indicates a growing preference for premium properties among homebuyers in Hyderabad.
Preference for Larger Homes
The trend towards larger homes is pronounced. Around 45% of the transactions in Q2 2024 were for apartments sized between 1,000-1,500 square feet, while 37% were for homes between 1,500-2,000 square feet, up from 31% the previous year. The total area of homes sold reached 29 million square feet, a 15% increase compared to the year-ago period. This preference for larger living spaces aligns with the growing affluence of homebuyers and their desire for more spacious and comfortable living environments.
Insights from Industry Experts
Debayan Bhattacharya, Principal Partner and Sales Director at Square Yards, said "The Hyderabad property market is on a remarkable upward trajectory. This growth reflects a strong appetite among homebuyers for premium and spacious properties, particularly those from reputable developers." Mr. Bhattacharya added that several prominent developers have launched successful projects in Hyderabad in recent years, contributing to this surge. The influx of reputable developers and their successful project launches have further fueled the demand for residential properties in the city.
Dominant Micro Markets
Hyderabad West remains the epicenter of residential activity, accounting for 46% of the total registered home transactions in the June quarter. This area also dominated in terms of sales value, capturing a 58% share. The central and eastern suburbs followed, with 11% and 10% shares, respectively. The western micro-market's dominance is attributed to its well-developed infrastructure, proximity to IT hubs, and availability of premium housing options.
The report identified Bachupally as the market leader with 1,010 registered transactions, followed by Kondapur and Puppalguda in the west. Kondapur led in registered home sales value, with ₹729 crore worth of homes sold during the quarter. Puppalguda and Kokapet also made substantial contributions. These localities have become attractive due to their strategic locations, robust connectivity, and high-quality residential projects.
Emerging Localities
Kokapet, in particular, is emerging as a sought-after locality due to its strategic location on the Outer Ring Road (ORR), connectivity to the airport, and the upcoming Neopolis project. The expanding IT sector in Hyderabad continues to drive residential demand, attracting both end-users and investors seeking attractive returns. Kokapet's development is a prime example of how strategic urban planning and infrastructure development can transform a locality into a real estate hotspot.
Future Outlook
Mr. Bhattacharya remains optimistic about the future of Hyderabad's property market: "As the city’s expanding IT sector continues to drive residential demand, we’re seeing increased interest from not only end-users but also investors, drawn by attractive returns. Looking ahead, we anticipate that both demand and supply will continue to strengthen, solidifying Hyderabad's position as a leading residential real estate hub not only in the southern region but across India." This optimistic outlook is supported by the city's ongoing infrastructural developments, favorable economic conditions, and strategic urban planning initiatives.
Conclusion
Hyderabad's property market is experiencing significant growth, driven by an increasing preference for larger and more expensive homes. The city’s strategic development, robust IT sector, and attractive investment opportunities are key factors contributing to this trend. As the market continues to evolve, Hyderabad is poised to maintain its status as a prime residential real estate destination in India. The ongoing infrastructural developments, coupled with the strong economic growth, will likely sustain the demand for residential properties in the city.
