Mid-range, high-end housing demand drives Hyderabad’s residential market
The year 2023 began with decent growth in the housing and residential segment, and mid and high-ticket homes led this growth, a phenomenon not observed a few years back.
Hyderabad: Hyderabadis continue to be keen on upsizing their living spaces that can accommodate all the necessary requisites – whether it is a comfortable workstation, a workout space, or a large balcony.
The year 2023 began with decent growth in the housing and residential segment, and mid and high-ticket homes led this growth, a phenomenon not observed a few years back.
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The analysis of buyers’ behavior by Knight Frank India, the independent real estate consultancy, gives an indication that a majority in the State capital has shifted their focus from affordable housing to mid-end and high-end homes.
In January, the city witnessed Rs 2,422 crore worth of residential properties transacted in the residential market consisting of four districts – Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy. A whopping 4,872 apartment units were registered, and homes in the price band of Rs 25 to Rs 50 lakh constituted 54 per cent of the total sales, an increase from a share of 39 per cent in January last year, reveals data.
While sales registrations for properties with ticket sizes of over Rs 50 lakh increased to 28 per cent in January this year from 25 per cent in January last year, the affordable housing segment accounted for a mere 18 per cent of the demand.
The category of sales in units larger than 1,000 sft yielded the maximum demand, with 71 per cent of all sales registering for homes between 1,000 and 2,000 sft. At the district level, the study shows that home sales registrations in the Medchal-Malkajgiri district were recorded at 41 per cent followed by the Rangareddy district at 35 per cent. The share of Hyderabad district in total registrations was recorded at 15 per cent in January.
Samson Arthur, Senior Branch Director-Hyderabad, Knight Frank India, says, “Thanks to its developing socio-economic environment, state-of-the-art infrastructure, and varied workforce, Hyderabad’s residential market has a huge housing market potential despite the pressure emanating from rising interest rates.” He added that the city’s upbeat outlook is amply demonstrated by the surge in high-value home registrations throughout the year.
Besides, Shishir Baijal, Chairman and Managing Director, Knight Frank India, believes that most buyers in the mid-income category of Rs 25 to Rs 50 lakh are usually salaried professionals and therefore, the stability in this segment indicates that, despite factors like rise in prices and interest rate hikes, end users have the financial confidence to make long term commitments.
