HYDERABAD: Despite facing the highest consumer price inflation in the country, the residential sales market in Hyderabad continues to thrive. Between January to June, sales of residential units increased by 5% YoY, reaching a total of 15,355 units. This growth rate is the highest among the top eight cities in India.
Despite a series of repo rate hikes by the Reserve Bank of India, with a cumulative increase of 250 basis points since May 2022, city’s residential market remained relatively stable. The most recent 25 basis points hike in Q1 2023 brought home loan rates close to pre-pandemic 2019 levels. Despite these factors, the market experienced robust sales in the first half of 2023.
According to Knight Frank, West Hyderabad emerged as the preferred choice for homebuyers in the first half of the fiscal year 2023 (H1), accounting for a significant 60% of total sales activity.This region’s popularity can be attributed to its proximity to key office locations such as HITEC City, Financial District, Madhapur, Gachibowli, Nanakramguda, and Kondapur. Additionally, the presence of robust infrastructure has also been a major factor attracting homebuyers.
In June, Hyderabad witnessed registrations of 5,566 residential properties, marking a 3% YoY increase. The total value of properties registered during the month amounted to Rs 2,898 crores, indicating a 2% YoY growth.Responding to changing buyer preferences, developers in Hyderabad launched 22,851 units in H1 2023. Of these launches, 42% were homes valued at over Rs 1 crore.
West Hyderabad accounted for 58% of the total launches, with prominent developers like My Home Constructions, Rajapushpa Properties, Honer Homes, and Candeur Constructions actively involved in the region.
During H1 2023, residential prices in Hyderabad experienced a YoY increase of 10%. This rise can be attributed to the sharp appreciation of land prices in recent years. Despite the price increase, Hyderabad remains a desirable location for both investors and end-users. The trend of upgrading to apartment complexes, which offer more space and amenities, has become prominent in Hyderabad’s residential market as families seek improved living options.