Realty boom spreads to Hyderabad suburbs
Hyderabad: Once restricted to the core of Hyderabad, real estate activity as it gained the hues of a boom, not only spread its tentacles to encompass the entire city but with more vigour in the then new areas along the immediate suburbs.
From Jubilee Hills to Madhapur, the real estate growth moved to Kondapur, Gachibowli, Miyapur, Nizampet and then, further to Gopanpally, Nallagandla, Manikonda and Narsingi. In a cascading effect, the property matters kept turning hot in neighbouring areas too and open land, plots and even apartments came into demand in districts adjoining Hyderabad.
The latest assessment by Knight Frank India reflects the increasing demand for realty in the adjoining districts of Hyderabad. The report which had Hyderabad residential market include four districts — Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy, shows high growth in real estate transactions in the districts.
At the district level, the study shows that home sales registrations in the Medchal-Malkajgiri district were recorded at 44 per cent followed by Rangareddy district at 38 per cent while the share of Hyderabad district in total registrations was at 14 per cent.
In terms of year-on-year comparison, the home sales registrations in Hyderabad district which was 14 per cent last August remained the same in August 2022 too. However, in the Medchal-Malkajgiri district during the same period (August 2021 to August 2022), the registrations rose from 39 per cent to 44 per cent.
A look at the data for Rangareddy district shows the home sales registrations being at 38 per cent in August 2022 dropping a little from 41 per cent in August 2021.
Meanwhile, Knight Frank India noted that Hyderabad recorded registrations of 5,181 units of residential properties in August 2022, up by 20 per cent month-on-month (MoM). The demand and registrations returned in August 2022 after witnessing a decline in the previous month on account of Ashada Maasam, considered less auspicious for new projects. The total value of properties transacted in August 2022 stood at Rs 2,658 crore, also registering a growth of 26 per cent MoM. Since the beginning of the year, the city has observed sales of 46,078 residential units with a total worth of Rs 22,680 crore.
Also, the demand for residential units in the price band of Rs 25 lakh to Rs 50 lakh constituted 55 per cent of the total sales in August 2022, which is an increase from a share of 37 per cent in August 2021. Demand in the less than Rs 25 lakh ticket-size however weakened with its share constituting 16 per cent compared to 35 per cent a year ago.
Greater demand for larger ticket size homes remained evident as the cumulative share of sales registrations for properties with ticket sizes of Rs 50 lakh increased to 29 per cent in August 2022 from 28 per cent in August 2021, Knight Frank India recorded in its assessment.
The segment of sales in unit sizes over 1,000 sft maintained its share at an approximate 83 per cent of all home sales registrations in August 2022. Homes in the size of 1,000 – 2,000 sft were 72 per cent of all sales registered during the period. The trend that was set during the pandemic by the consumers to upgrade their property and move into larger living quarters, continued to hold strong in August 2022 as well.
Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, “August 2022 witnessed an increase of 20 per cent MoM in both residential registrations as well as state earnings from home registrations while observing a reduction of 36 per cent on YoY basis.”
Despite the impact of external factors including an increase in interest rates and price, the Hyderabad residential market continues to experience robust demand trends, he said while adding, “going ahead, we expect home demand to remain stable as end-users continue to be drawn to home purchases backed by job security, rising household incomes and savings.”
