Residential properties worth INR 2,100 Cr registered in Hyderabad in July’22; Homes worth INR 20,000 Cr sold since Jan’22: Knight Frank India

Residential properties worth INR 2,100 Cr registered in Hyderabad in July’22; Homes worth INR 20,000 Cr sold since Jan’22: Knight Frank India 

·       4,313 apartments registered in July 2022 across 4 districts of Hyderabad

·       56% of all home sales in the price range of INR 25 - 50 lakh

·       72% of all sales registered for homes between 1,000 - 2,000 sq ft

Hyderabad, August 2022: In the latest assessment, Knight Frank India noted that Hyderabad recorded registrations of 4,313 units of residential properties in July 2022 which was lower by 20% month on month (MoM).  Properties over INR 50 lacks and above witnessed fewer transactions in the last month contributing to the slowdown. The drop was caused by adverse sentiments towards major investment decisions in ‘Ashada Masam’ combined with heightened uncertainty over rising interest rates. The total value of properties transacted in July 2022 stood at INR 2,101 crore also registering a decline of 26% MoM. Since the beginning of the year, the city has seen sales of 40,897 residential units with a total worth of INR 20,023 Crores. The Hyderabad residential market includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

TABLE: SALES REGISTRATIONS IN HYDERABAD

Registration (No. of units)					Registration value (INR Million)
Month	2021	2022	YoY change	MoM Change	2021	2022	YoY change	MoM Change
January	7,592	7,343	-3%	-14%	32,881	32,608	-1%	-12%
February	6,877	5,435	-21%	-26%	29,397	28,386	-3%	-13%
March	8,260	6,722	-19%	24%	34,603	31,355	-9%	10%
April	5,903	5,366	-9%	-20%	25,267	27,837	10%	-11%
May	2,501	6,307	152%	18%	12,445	30,607	146%	10%
June	7,251	5,411	-25%	-14%	31,697	28,421	-10%	-7%
July	9,507	4,313	-55%	-20%	45,729	21,015	-54%	-26%

 

Of all residential sales registered during July 2022, homes in the price band of INR 2.5 – 5 Mn (INR 25 – 50 lakhs) constituted 56%, which is an increase from a share of 34% in July 2021. Demand in the less than INR 2.5 mn (INR 25 Lakhs) ticket-size however weakened with its share constituting 18% compared to 35% a year ago. The cumulative share of sales registrations for properties with ticket-sizes of INR 5 Mn (INR 50 lakhs) and above declined to 26% in July 2022 from 31% in July 2021.

                                    TABLE: TICKET SIZE SHARE OF SALES 

Ticket-size	July 2021	July 2022
<2.5 mn	35%	18%
2.5-5 mn	34%	56%
5-7.5 mn	14%	13%
7.5-10 mn	8%	6%
10 mn-20 mn	6%	5%
>20 mn	2%	2%

Source: Knight Frank Research, Telangana Registration and Stamps Department

 

Homes in the size of 1,000 – 2,000 sq. ft. constituted 72% of all sales registered during the period. The trend of homebuyers looking to upgrade and move into larger living quarters, sparked by the pandemic, continued to hold strong in July 2022 as well.

 

TABLE: SALES SPLIT BY UNIT SIZE 

Unit-size in sq ft	July 2021	July 2022
0-500	3%	2%
500-1,000	13%	17%
1,000-2,000	72%	72%
2000-3000	9%	7%
>3000	3%	2%

Source: Knight Frank Research, Telangana Registration and Stamps Department

A district level study shows that 41% home sales registrations were in the Medchal-Malkajgiri district followed by Rangareddy district at 38%. The share of Hyderabad district in total registrations was recorded at 16% in July 2022.

 

TABLE: SALES SPLIT BY DISTRICT

District	July 2021	July 2022
Hyderabad	15%	16%
Medchal-Malkajgiri	38%	41%
Rangareddy	42%	38%
Sangareddy	5%	5%

Source: Knight Frank Research, Telangana Registration and Stamps Department

The weighted average prices of transacted residential properties, as per the registration data, has grown by 9% YoY in July 2022. Sangareddy district saw the steepest rise of 27% YoY in July 2022 indicating that higher value homes were sold in this location during this period. Price growth in the Hyderabad continued to remain strong across all micro markets.

 

TABLE: TRANSACTED PRICE BY DISTRICT 

District	Weighted Average Transacted price (INR psf)	July 2022 (YoY change)
Hyderabad	4,184	10%
Medchal-Malkajgiri	2,926	20%
Rangareddy	3,946	5%
Sangareddy	2,687	27%
Total Market	3,553	9%

Source: Knight Frank Research, Telangana Registration and Stamps Department

Note: Weighted average transacted price depicts the price at which properties have been registered in a district/ market during a particular period. It uses the area transacted as the weight.

 

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The Hyderabad residential market, which has been largely resilient during the pandemic, recorded some decline in activities in the month of July 2022 due to a plethora of reasons, ranging from rise in prices to upward revision of home loan rate. Residential registrations and state revenues from registrations have seen a decline in this month. Going forward, we do expect some short-term moderation in activities due to the rising home loan rates and an increase in prices in the market, however, the strength of the latent demand in the market is expected to keep the market buoyant in mid to long – term basis, given the overall economic growth and the rise in income levels.”

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