Hyderabad tops residential sales in India

According to Knight Frank India, residential sales have increased by 5 per cent YoY during H1 2023 to 15,355 units, which is the highest growth recorded by a city amongst the top eight cities under their coverage

Hyderabad: Asserting its undisputed status as country’s most sought after real estate destination, residential sales grew most in Hyderabad while other cities struggled with some even recording a drop in sales.

In their latest report for Residential- H1 2023, Knight Frank India noted that residential sales grew most in Hyderabad at 5 per cent year-on-year (YoY), and Mumbai and Bengaluru saw a fall of 8 per cent and 2 per cent YoY respectively.

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Also, Hyderabad residential prices grew by 10 per cent YoY, the highest among all markets. Since the past few years, there has been a sharp appreciation of land prices which has led to an increase in residential prices as well. Despite the price rise, the city continues to remain a desirable location for investors as well as end users, the report said.

According to Knight Frank India, residential sales have increased by 5 per cent YoY during H1 2023 to 15,355 units, which is the highest growth recorded by a city amongst the top eight cities under our coverage for the period under review. During Covid-19 and post the ebbing of the pandemic, the sale volume continued to remain relatively steady in Hyderabad as home-buyer sentiments remain sanguine.

West Hyderabad continues to dominate the preference of homebuyers in H1 2023 and accounted for a significant 60 per cent of the total sales activity. Proximity to office locations like Hitec City, Financial District, Madhapur, Gachibowli, Nanakramguda and Kondapur coupled with the presence of robust infrastructure have been the major pull factors for homebuyers in West Hyderabad.

In accordance with the shift in preference, developers have launched 22,851 units during H1 2023, of which 42 per cent were for homes valued Rs 1 crore. A total of 58 per cent of the overall launches took place in West Hyderabad.

On All India Residential update for January – June 2023, Knight Frank India report said H1 2023 posted sales of 1,56,640 units, 1 per cent lower YoY. The demand remained consistently high in H1 2023 even as annual growth slipped marginally. The sales volume was the second highest in almost 10 years.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “residential sales have been strong in most markets during the first half of 2023. The main drivers of market momentum are mid and premium segment homebuyers, who possess both the desire and financial capability to purchase a home.”