The city’s real estate success story continues to evolve apace, undeterred by any influence, and displaying incredible resilience.
UPDATE – 12:15 AM, SAT – 1/14/23
The NRI community is exploring options for investing in and acquiring properties in the city’s western area.
Hyderabad: The Hyderabad real estate market is showing some vibrancy as it bids farewell to an eventful 2022 and enters the new year with a more confident and positive outlook.
The city’s real estate success story continues to evolve apace, undeterred by any influence, and displaying incredible resilience. While the popular residential market continues to expand rapidly without any signs of slowing down, new areas in the suburbs and beyond have started to show more promise.
Given the positive vibe in Hyderabad’s residential market, potential home buyers remain active, showing strong interest in not only developed but emerging real estate areas.
The West End has always been the undisputed heart and soul of urban real estate success stories. Not only does it attract local homebuyers, but it also exudes magic, attracting young investors from all over the country. Such is the beauty of it that even the NRI community not only from Telangana but also from other states are constantly exploring options for investing and acquiring properties in the western part of the city.
Adding even more impetus to the core of Hyderabad in the west are its immediate districts, nearby districts and further afield. In fact, places like Tellapur, which were little known until a few years ago, are now bustling with construction activity, with skyscrapers rising from the ground.
This week, Knight Frank India released its 18th flagship semi-annual report, Real Estate India: 2022, noting that places like Trappur, Coral, Gandipet and Nasingi saw the most development activity last year.
Hyderabad’s residential market continues to enjoy strong sales momentum in 2022, with home sales in the city rising 28% year-on-year to 31,046 units, according to Knight Frank’s annual summer report. The report highlights that this happens to be the city’s highest sales record since 2011.
With 43,847 new units added in 2022, new projects have also surged, and developers have also launched new projects in the city during the year, taking advantage of the shift in homebuyer sentiment. Meanwhile, average weighted prices in the region rose 6% year-on-year.
In its semi-annual report, which provides a comprehensive analysis of residential and office market performance in eight major cities from July to December 2022, Knight Frank noted that “buyer sentiment continues to remain strong despite sharp increases in interest rates in the second half of 2022.”
The residential market in Hyderabad is said to see 16,353 units sold in the second half of 2022, a 32% increase from the same period last year. Total releases over the six-month period rose 18 percent to 22,491. 61% of these units were fired from West Hyderabad!
In terms of micro market share, Knight Frank reported that demand in West Hyderabad continued to be strong, accounting for 62% of all sales in the second half of 2022, as buyers preferred proximity to the city’s business core and office hubs Hitec City, Gachibowli and Nanakramguda.
Meanwhile, North Hyderabad’s share of total sales also rose slightly from 18% in July-December 2021 to 19% in the same period in 2022.
Interestingly, the city offers products for every need and every pocket size. Hyderabad remains a strong market for mid-range housing with 45% of mid-range homes in the Rs 5-10 lakh range by the second half of 2022.
Meanwhile, the Rs 1 crore and above ticket size segment is gaining traction, with its share of sales increasing from 19% in 1H2018 to 2H22. “The need to upgrade a household’s main residence to accommodate work-from-home and education requirements has led to a dramatic shift in demand for fares above Rs 50 lakh,” the Knight Frank report states.
Samson Arthur, Senior Division Director, Hyderabad, Knight Frank India, said: “Despite the significant hurdles posed by geopolitical developments and rising home mortgage rates over the past few quarters, registrations in the residential sector in the city have continued to increase. Despite being more sensitive The lower-priced segment of the city has suffered, but demand for higher-value properties remains strong, maintaining a positive outlook for the city.”
