Hyderabad sets new record with historic residential sales surge in 2023
This upswing was attributed to the discernible shift among homebuyers who increasingly prioritize lifestyle upgrades, emphasizing amenity-rich communities in their quest for the ideal living space.
Hyderabad: Hyderabad’s real estate market witnessed an unprecedented surge in residential sales, hitting a historic pinnacle in 2023, according to the latest report released by Knight Frank India.
The “India Real Estate – Residential and Office Market Report” revealed that a 6 per cent year-on-year (YoY) increase propelled the annual residential sales to an all-time high of 32,880 units in 2023. This upswing was attributed to the discernible shift among homebuyers who increasingly prioritize lifestyle upgrades, emphasizing amenity-rich communities in their quest for the ideal living space.
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According to the report, an integral factor contributing to this record-breaking surge was the substantial rise in residential launches, soaring by 7 per cent YoY to 46,985 units in 2023. Of these, 43 per cent were high-value homes, priced above Rs 10 million, reflecting the evolving preferences for opulence and luxury in residential choices. This demand also resulted in 11 per cent growth in the average residential price of the city, reaching Rs 5,550 per sft.
The report highlighted that several key micro markets in the city experienced a substantial double-digit rental appreciation, especially in the West and South regions, signifying a growing interest in these areas.
Also, the city outskirts witnessed increased attention and growth in property values, with Kokapet registering a staggering 39 per cent increase in the price range of Rs 10,045 to 12,500 per sft over 12 months, followed by Manikonda with a 28 per cent surge and Rajendra Nagar with a 20 per cent surge.
The report outlined a significant shift in the preferences of homebuyers regarding ticket categories. The proportion of affordable residential sales, homes below Rs 5 million, dwindled from 26 per cent in 2018 to 11 per cent in 2023. Similarly, the mid-value segment, encompassing homes priced between Rs 5 million to 10 million, witnessed a decline from 52 per cent in 2018 to 40 per cent in 2023.
