Hyderabad Registers 7,014 Housing Units Worth ₹4,288 Crore in June 2024, Up 26% YoY: Knight Frank Report
In June 2024, Hyderabad's real estate market experienced substantial growth in residential property registrations. According to a report by Knight Frank India, the city registered 7,014 residential properties valued at ₹4,288 crore. This marked a 26% annual increase in the number of units and a 48% rise in overall value compared to the previous year, highlighting a significant boom in the real estate sector.
Significant Growth in Housing Market
The surge in property registrations underscores the growing demand for larger and higher-value properties in Hyderabad. Notably, the segment of homes priced over ₹1 crore saw a remarkable 96% year-on-year (YoY) growth in June 2024. Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented, "The demand in the residential market in Hyderabad is experiencing a significant shift towards luxurious homes with spacious layouts and greater amenities."
This trend reflects a broader shift in consumer preferences, with more homebuyers seeking premium features, enhanced security, and better community living experiences. Developers in Hyderabad are quickly adapting to these changes, introducing new projects that cater to the evolving needs of affluent buyers.
Half-Year Performance
During the first half of 2024 (January to June), Hyderabad registered a cumulative total of 39,220 residential units valued at ₹24,287 crore. This represents a 21% annual increase in the average cost of homes compared to the same period in 2023, which saw 34,237 units worth ₹17,490 crore registered. The consistent rise in both unit registrations and property values indicates sustained demand and robust market health.
Market Dynamics
The residential market in Hyderabad spans four key districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy. These districts cover both primary and secondary (resale) home sales, providing a comprehensive view of the market's performance. The inclusion of both new and resale properties in the data offers a holistic picture of the city's real estate dynamics, ensuring a balanced perspective on market trends.
Changing Buyer Preferences
A noticeable trend in the Hyderabad housing market is the increasing preference for higher-value homes. In June 2024, properties priced under ₹50 lakh constituted the largest share of registrations at 60%, while those costing ₹1 crore and above accounted for 14% of total registrations. This shift is indicative of a growing middle and upper-middle-class population with greater purchasing power and a desire for upscale living.
The demand for larger homes is also on the rise. Properties between 1,000 and 2,000 square feet made up 68% of total registrations. Smaller homes (less than 1,000 square feet) saw a decline in their share to 18% from 21% in June 2023. Conversely, there was an increase in demand for homes exceeding 2,000 square feet, with registrations rising to 14% from 11% in the same period last year. This trend suggests that homebuyers are prioritizing space and comfort, likely driven by changes in lifestyle and work patterns post-pandemic.
Market Supply
In terms of new launches, 3 BHK units dominated the market in June 2024, accounting for 48% of the total fresh supply. This was followed by 2 BHK units at 27%. Both 1 BHK and 4 BHK units saw an increase in their share in the overall supply, standing at 3% and 18%, respectively. The niche category of 5 BHK units accounted for 4% of the launches during June 2024. The diversity in unit types reflects the developers' strategy to cater to a wide range of buyer needs and preferences.
Regional Breakdown
At the district level, Rangareddy emerged as the leading contributor to property registrations in June 2024, capturing 43% of the overall market. This was followed by Medchal-Malkajgiri at 41% and Hyderabad district at 16%. The report also highlighted a year-on-year increase of 10% in the weighted average price of transacted residential properties during June 2024. Medchal-Malkajgiri experienced the sharpest increase at 11%, while Rangareddy and Hyderabad saw increases of 8% and 7%, respectively. These statistics indicate a broad-based growth across different parts of the city, driven by infrastructural developments and improved connectivity.
High-Value Transactions
The top five real estate deals in June 2024 predominantly occurred in Rangareddy and Hyderabad, with properties exceeding 3,000 square feet and valued above ₹7.1 crore. Four out of these top-five purchases were in West Hyderabad, with one in Central Hyderabad's upscale Jubilee Hills. These high-value transactions highlight the attractiveness of Hyderabad's premium real estate market and its appeal to high-net-worth individuals.
Developer Strategies and Future Outlook
Developers in Hyderabad are not only focusing on meeting the current demand but are also strategically planning for future growth. Many are investing in sustainable and smart home technologies to attract environmentally conscious buyers. Features such as energy-efficient appliances, green building materials, and smart home systems are becoming standard in new luxury developments.
Additionally, the Hyderabad real estate market is benefiting from significant infrastructural developments, including new metro lines, improved road networks, and upcoming commercial hubs. These factors are making the city more attractive to both domestic and international investors, further fueling the real estate boom.
Conclusion
The data from Knight Frank India underscores a significant shift in Hyderabad's real estate market, with increasing demand for larger and more luxurious homes. Developers are swiftly adapting to these changing market dynamics by tailoring their offerings to meet buyer demands. As the city continues to grow and attract more investments, the future of Hyderabad's real estate market looks promising.
Image source- pixabay.com
