Hyderabad's Real Estate Growth: More Than 59,000 Homes Sold for ₹36,461 Crore in the First Nine Months of 2024
As per a report from Knight Frank India, Hyderabad’s real estate market is witnessing remarkable growth in 2024, with over 59,000 homes sold for a total of ₹36,461 crore in the first nine months. The analysis shows a 34% year-on-year increase in sales and a 13% rise in registrations, underscoring the city’s emerging status as a prime destination for residential investments. Key factors contributing to this growth include economic stability, favorable lending conditions, and significant infrastructure development, all of which are boosting buyer confidence and making 2024 one of Hyderabad’s strongest years in real estate.
Key Trends in Hyderabad’s Housing Market
The Knight Frank report highlights several key trends that have shaped Hyderabad’s real estate market in 2024:
Preference for High-Value Properties: Registrations for homes priced above ₹1 crore increased by 79%, and the share of these transactions rose from 9% to 14% year-on-year.
Demand for Spacious Homes: Approximately 68% of registered properties in September were in the 1,000 to 2,000 square feet range. The report also noted a rise in properties exceeding 2,000 square feet, which now make up 13% of registrations.
Rising Demand for 3BHK Units: The preference for 3BHK units rose significantly, with these units making up 70% of new launches, up from 60% the previous year. Meanwhile, the share of 2BHK units dropped slightly.
September’s Seasonal Decline in Transactions
Despite the year’s strong performance, the Knight Frank report notes a seasonal dip in September’s figures, which recorded an 18% year-on-year decrease in sales value and a 22% decline in property registrations. This decrease aligns with the cultural observance of Shradh, traditionally considered inauspicious for major purchases in Hindu culture, which took place from September 17 to October 2. The report indicates this is likely a temporary fluctuation rather than a signal of market weakness.
Regional Demand Patterns: Medchal-Malkajgiri Takes the Lead
The report shows that Hyderabad’s real estate demand varies significantly by region:
- Medchal-Malkajgiri: This district claimed the largest share of the market at 42%, with a 7% increase in property prices—the highest across Hyderabad.
- Rangareddy: Holding 39% of registrations, Rangareddy remains a popular choice for its proximity to commercial centers and blend of residential options.
- Hyderabad District: Representing 19% of registrations, this central urban area attracts buyers for its mature infrastructure and strategic location.
Rising Property Prices Across Districts
In addition to high demand, the average price of residential properties in Hyderabad has seen a modest yet steady increase. The Knight Frank report highlights an annual price appreciation of 3% for transacted properties as of September 2024. Among Hyderabad’s districts, Medchal-Malkajgiri led the way with a 7% increase in prices, followed by Rangareddy and Sangareddy, where prices rose by 3% and 2%, respectively. The gradual price hike reflects both the high demand for housing in Hyderabad and the limited availability of premium properties in prime locations.
Luxurious Properties in High Demand
Hyderabad’s real estate market is increasingly characterized by high-value transactions, with some of the top deals in September 2024 taking place in Hyderabad and Rangareddy. The properties involved were expansive, exceeding 3,000 square feet, and valued upwards of ₹4.3 crore. These luxury transactions underscore the appeal of Hyderabad’s upscale neighborhoods for buyers seeking large, well-appointed homes with advanced amenities.
Key Drivers of Hyderabad’s Real Estate Growth
According to Knight Frank, several factors are fueling Hyderabad’s thriving real estate market:
- Economic Growth: With significant investments in IT, pharmaceuticals, and manufacturing, Hyderabad is attracting a highly skilled workforce, creating steady demand for residential properties.
- Infrastructure Expansion: Infrastructure projects like the Outer Ring Road expansion and improved public transport are enhancing connectivity, making Hyderabad an increasingly attractive option for homebuyers.
- Accessible Financing: Low interest rates and government support for home financing have increased buyers’ purchasing power, contributing to robust sales, especially in the mid- to high-end segments.
- Post-Pandemic Lifestyle Shifts: The pandemic has influenced buyer preferences, resulting in a higher demand for spacious homes that accommodate remote work and lifestyle amenities.
- Growing Demand for Upscale Living: With a rise in high-value transactions, buyers are increasingly investing in premium properties featuring smart home technologies and green spaces.
Outlook for Hyderabad’s Real Estate Market
Hyderabad’s real estate market is positioned for continued growth, supported by robust demand and favorable market conditions. The city’s blend of economic vitality, infrastructure development, and lifestyle appeal makes it a prime destination for both domestic and international investors. With a significant portion of the market now geared towards luxury and premium housing, Hyderabad’s real estate sector is expected to maintain its upward trajectory, especially as developers respond to the evolving preferences of today’s homebuyers.
