Residential propety

Hyderabad records 152% YoY increase in residential property sales in May

Residential sales of 6,301 properties were recorded in Hyderabad in May 2022, an increase of 152% year-on-year and 17.6% month-on-month, Knight Frank said.

The total value of properties traded in May 2022 stood at Rs 3,058 crore, an increase of 146% year on year and 9.9% month on month, bringing the cumulative value of all properties registered since January 2022 to Rs 15,071 cr.

Hyderabad residential market comprises of four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

Of all residential sales recorded in May 2022, houses in the price range of Rs 2.5-5 Mn (Rs25-50 lakhs) accounted for 55%. Demand in the sub-Rs 2.5 min (Rs 25 Lakhs) ticket format has weakened, however, with its share constituting 18%. The cumulative share of sales registrations for properties with a ticket size of 5 mins and above increased to 27% in May 2022 from 26% in May 2021.

Shishir Baijal, Chairman and Managing Director, said, “In recent years, Hyderabad has experienced one of the strongest demand trends, despite external factors such as economic downturn and inflation. While rising construction costs impacted the most price-sensitive categories, higher segments had little influence, which kept the market strong. End users continue to be attracted to purchase a home by factors such as job security, increased household income and savings, and mortgage rate compliance. »

The share of sales in units larger than 1,000 square feet held its share at around 81% of all home sales recorded in May 2022. Homes sized between 1,000 and 2,000 square feet accounted for 73% of all sales recorded during the period. . The trend of homebuyers looking to upgrade and move into larger units, which was triggered by the pandemic, also continued in May 2022.

A district-level study shows that house sales registrations in Medchal-Malkajgiri district were recorded at 51% in May 2022 followed by Rangareddy district at 35%. The share of Hyderabad district in total enrollment was recorded at 11% in May 2022.

The weighted average prices of residential properties traded, according to registration data, increased by 6% year-on-year in May 2022. The Sangareddy region saw the largest increase of 44% year-on-year (although on a low) in May 2021, indicating a higher increase – value houses were sold there in May 2022. Price growth in the Hyderabad market has been strong lately. With higher value property sold in May 2022; the weighted average price showed an upward trend in all micro-markets of Hyderabad.