Ashada Masam, rising interest rates cause dip in property registrations in Hyderabad
Hyderabad: Hyderabad recorded registrations of 4,313 units of residential properties in July 2022. In its latest assessment released this week, Knight Frank India noted that properties over Rs 50 lakh and above witnessed fewer transactions in the last month contributing to the slowdown. The drop was caused by adverse sentiments towards major investment decisions in […]
Hyderabad: Hyderabad recorded registrations of 4,313 units of residential properties in July 2022.
In its latest assessment released this week, Knight Frank India noted that properties over Rs 50 lakh and above witnessed fewer transactions in the last month contributing to the slowdown. The drop was caused by adverse sentiments towards major investment decisions in ‘Ashada Masam’ combined with heightened uncertainty over rising interest rates.
The total value of properties transacted in July 2022 stood at Rs 2,101 crore also registering a decline of 26 per cent MoM. Since the beginning of the year, the city has seen sales of 40,897 residential units with a total worth of Rs 20,023 crore. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
Of all residential sales registered during July 2022, homes in the price band of Rs 25 – 50 lakh constituted 56 per cent, which is an increase from a share of 34 per cent in July 2021. The cumulative share of sales registrations for properties with ticket-sizes of Rs 50 lakh and above declined to 26 per cent in July 2022 from 31 per cent in July 2021, Knight Frank assessment pointed out.
Homes in the size of 1,000 – 2,000 sq ft constituted 72 per cent of all sales registered during the period. About 41 per cent home sales registrations were in the Medchal-Malkajgiri district followed by Rangareddy district at 38 per cent. The share of Hyderabad district in total registrations was recorded at 16 per cent in July 2022.
The weighted average prices of transacted residential properties, as per the registration data, has grown by 9 per cent YoY in July 2022. Sangareddy district saw the steepest rise of 27 per cent YoY in July 2022 indicating that higher value homes were sold in this location during this period. Price growth in the Hyderabad continued to remain strong across all micro markets.
“The Hyderabad residential market recorded some decline in July 2022 due to rise in prices and upward revision of home loan rate. Going forward, we do expect some short-term moderation in activities due to the rising home loan rates and an increase in prices in the market,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
