IT sector, investors drive steady demand in Hyderabad’s resilient real estate market
The city witnessed a robust activity in terms of new launches and a steady demand, which has resulted in a price appreciation of 5 per cent YoY, the data collated by Knight Frank India reveal
Published Date - 15 April 2023, 05:50 PM
Hyderabad: City’s real estate market continuing to stay strong and buoyant, despite facing the brunt of rising prices, home loan rates, and tight liquidity. Both in terms of new launches and sales, the sentiment for real estate in the city has been positive and growing.
The city witnessed a robust activity in terms of new launches and a steady demand, which has resulted in a price appreciation of 5 per cent YoY, with an average price level of Rs 4,997 per sq ft, the data collated by Knight Frank India reveal.
This growth is attributed to a mix of end-users and investors, with a good part of the end-users coming from the IT sector. With Bengaluru being a close competitor, Hyderabad has managed to maintain a steady demand in the face of challenging circumstances.
The Knight Frank India data reveals that Hyderabad recorded sales of 8,300 residential units between January and March this year, higher by 19 per cent YoY.
The city witnessed a cumulative new launch of 44,577 units in FY23 (beginning on April 1, 2022, and ending on March 31, 2023), translating into a 21.65 per cent hike.
Additionally, the commercial real estate market witnessed transactions measuring 6 million sft in FY23, with the completion of 9.2 million sq ft in the same period.
Despite the Reserve Bank of India‘s (RBI) decision to hike rates in May 2022, and a subsequent cumulative hike of 250 bps in FY23 alone, Hyderabad’s real estate market remained resilient. The new sales were 32,353 residential units in FY23, a 32.58 per cent hike from FY22, maintaining an average of over 8,088 unit sales per quarter in FY23.
– Hyderabad witnesses sales of 8,300 residential units in Q1CY23, up 19% YoY
– Hyderabad saw new launches of 10,986 residential units, 7% higher YoY
– Average price in Hyderabad stands at Rs 4,997 per sq ft, up 5% YoY
Hyderabad Residential Market (QoQ):
Launches Sales Prices
Q1 2023 10,986 8,300 4,997
Q1 2022 10,256 6,993 4,775
% Change YoY 7% 19% 5%
Hyderabad Residential Market (YoY):
Year Launches Sales
FY23 44,577 32,353
FY22 36,642 24,402
% Change YoY 21.65% 32.58%
(Source: Knight Frank India Research)