HYDERABAD: Hyderabad’s housing market saw a continuation of robust sales activity in 2022, with a 28 per cent year-over-year (YoY) increase in housing sales volume. A total of 31,046 units were sold in the city throughout the year, the highest number of sales recorded in the city since 2011.
There was also a substantial increase in new housing unit launches in Hyderabad, with a 23 per cent YoY increase in the number of units launched. Developers added 43,847 new units to the market in 2022, capitalising on the positive sentiment among homebuyers. The year 2022 saw many new projects being launched by the developers in the city.
According to a report by Knight Frank, Hyderabad’s housing market saw strong growth in the second half of 2022, with sales of 16,353 units, a 32 per cent YoY increase over the same period in the previous year. Total launches in H2 2022 also grew by 18 per cent YoY to 22,491 units.
A majority of the new housing units were launched in West Hyderabad, with about 61 per cent of the total units being located in this area. Tellapur, Kollur, Gandipet and Narsingi were among the locations that saw the most development activity. Northern parts of Hyderabad also saw a slight increase in its share of total sales, going from 18 per cent in H2 2021 to 19 per cent in H2 2022.
“Despite facing challenges from geopolitical developments and rising mortgage rates in recent months, the residential market in Hyderabad continues to see an uptick in sales,” said Samson Arthur, Senior Branch Director at Knight Frank India, Hyderabad. “While the market for lower-priced properties has been affected, there is still strong demand for high-value properties, maintaining a positive outlook for the city’s housing market,” he added.
Hyderabad logs transactions of 6.7 million sq ft in 2022
Hyderabad’s commercial real estate market saw a 12 per cent YoY increase in office transactions during 2022, with a total of 6.7 million square feet of office space leased. According to reports, this was the third-highest leasing volume among the top eight markets in India.
From a half-yearly perspective, office transactions in Hyderabad saw a decline of 20 per cent YoY in H2 2022, with a total of 3.5 million sq ft of leasing. The drop in activity can be attributed to a base effect, as a spike in transactions was observed during the same period in the previous year. However, new office completions remained strong, with a YoY increase of 56 per cent, resulting in the addition of 6 million sq ft in H2 2022.
The IT industry was the dominant sector in the market during the second half of 2022, accounting for 31 per cent of the total space transacted during that quarter.
LARGE TRANSACTIONS DRIVE HYD REALTY
Large-scale transactions were the main driver of upward trend. Other service sectors, such as e-commerce, education, healthcare and logistics, among others, also contributed significantly to the market, accounting for 52 per cent of the total space transacted during the same period.