Hyderabad’s real estate market leads with strong growth in Q1 2023
The real estate market experienced a whopping 19 per cent YoY growth in sales volume, with 8,300 units sold during the period.
Hyderabad: Despite concerns around economic slowdown and rate hikes, the Hyderabad residential market has shown incredible resilience and growth in the first quarter (January to March) of 2023.
In fact, the market experienced a whopping 19 per cent YoY growth in sales volume, with 8,300 units sold during the period, according to a latest report released by Knight Frank India.
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But that’s not all. The market also saw a 7 per cent Year-over-Year (YoY) growth in new unit launches, with a total of 10,986 new units hitting the market. This growth is especially impressive considering the Hyderabad market has a mix of both end-users and investors, with a good portion of end-users coming from the IT sector.
This steady demand has translated into a 5 per cent YoY price appreciation, with the average price level now standing at Rs 4,997 per sft. And while the Hyderabad market may not be the biggest, it is certainly the most impressive, with sales growing the most in the first three months of the year compared to other cities. Sales in Mumbai and Bangalore slipped slightly, with -6 per cent and -2 per cent YoY respectively.
Besides, 87,299 new units were added to the market between the months of January and March, registering a growth of 12 per cent YoY with Hyderabad witnessing a 7 per cent rise, Knight Frank India assessment noted.
And while the market may be growing, it is also changing. The share of sales in the Rs 1 crore and above ticket size grew significantly to 29 per cent in the first three months of 2023 compared to 25 per cent a year ago.
This can be attributed to the aspirations of homebuyers to upgrade to larger living spaces with better amenities. The mid and premium segments have emerged as outperformers in this market, driving demand and sales volumes.
Says Shishir Baijal, Chairman & Managing Director, Knight Frank India,”The mid and premium segments can also be expected to drive volumes for the remainder of 2023.”
And with YoY growth in per square foot prices across all cities during the first three months of 2023, including Hyderabad, the future certainly looks bright for the city’s residential market.
