Rs 2,722-crore worth of residential properties transacted in Hyderabad in February
Hyderabad: The monthly residential property registrations in Hyderabad stood at 5,146 units in February 2022, worth Rs 2,722 crore. Almost 74 per cent of all sales registered in February in homes between 1,000 and 2,000 sq ft, according to Knight Frank India. The Hyderabad residential market includes four districts of Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy. […]
Hyderabad: The monthly residential property registrations in Hyderabad stood at 5,146 units in February 2022, worth Rs 2,722 crore. Almost 74 per cent of all sales registered in February in homes between 1,000 and 2,000 sq ft, according to Knight Frank India.
The Hyderabad residential market includes four districts of Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy. The rise in registration costs has hit the less than Rs 25 lakh category the most, as sales registrations in this category reduced significantly to a mere 844 units in February 2022 as against a much robust 2,888 units in February 2021.
About 69 per cent of residential sales registered during February 2022 have occurred in the under Rs 50 lakh ticket size category, as compared with 76 per cent in February 2021 in this category. Within this category, demand in the less than Rs 25 lakh ticket-size remained weak at a mere 16 per cent in February 2022 compared to 42 per cent in February 2021.
The share of sales registrations of all other ticket-size segments stayed stable or grown marginally in YoY terms in February 2022. The Rs 25-50 lakh ticket size segment’s share grew the most from 34 per cent in February 2021 to 52 per cent in February 2022.
Unit size trend
The growth seen in the market shares of the mid and high ticket-size segments is also reflected in the share of sales in various unit size ranges. The share of sales in all unit-sizes over 1,000 sq ft constituted 85 per cent of all home sales registrations in February 2022.
Of these, homes in the size of 1,000–2,000 sq ft consist of 74 per cent of all sales registered during the period. The trend of homebuyers looking to upgrade and move into larger living quarters, that was sparked by the pandemic, continued to hold strong in February 2022 as well.
Hyderabad district
While total sales have dropped by 25 per cent in YoY terms in February 2022 for the four districts, a district-level analysis shows that the Hyderabad district saw a 64 per cent YoY drop in sales registrations during the period. Even in terms of share of total sales, the district accounted for 10 per cent of the residential units registered during the month, compared to 20 per cent from a year ago.
The weighted average transacted price of residential properties, as reflected by the registration data, has grown by 21 per cent YoY in February 2022. While price growth in the Hyderabad market has been strong in recent times, this extraordinary growth in February should be attributed to sharp fall in share of the sales registered in the under Rs 25 lakh segment.
Shishir Baijal, CMD, Knight Frank India said, “Hyderabad has been among the strongest residential markets in the country in terms of sales price growth for the past few years. However, sales registration momentum has been hindered in the first two months of 2022 due to the operational restrictions in January caused by the Omicron virus and increased property registration costs thereafter in February.”
“While this slowdown is notable especially in light of the change in behaviour of the price-sensitive homebuyer in the less than Rs 25 lakh category, we do not view this as an immediate cause for concern and expect the pace of registrations to normalise over the course of the year.”
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