Real-estate consultancy company Knight Frank India has said that the monthly residential property registrations in Hyderabad market stood at 5,146 units in February 2022, showing a drop of 25 per cent when compared to the numbers in the same month last year.
The total value of the residential properties transacted in the month stood at ₹2,722 crore. “The increase in registration costs on increased market values has slowed down home sales,” it said.
Effective February 1, the Telangana Government had increased market values of all properties (agriculture, plots and flats) by 50 per cent, 35 per cent and 25 per cent respectively. In case of high-value properties, the market value has gone up by 10 per cent. This sharp increase in market values have resulted in a sharp increase in the overall cost of registrations. The Stamp Duty, however, is kept unchanged at 7.5 per cent.
The Hyderabad residential market includes four districts of Hyderabad – Medchal, Malkajgiri, Rangareddy and Sangareddy.
While total sales have dropped by 25 per cent in y-o-y terms in February 2022, a district-level analysis shows that the Hyderabad district saw a drop of 64 per cent y-o-y in sales registrations.
“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 last year,” it said.
The rise in registration costs has hit the less than ₹25 lakh category the most, leading a drastic drop in this category. The number of registrations dropped to 844 units in February 2022 as against 2,888 units in the same month last year.
About 69 per cent of residential sales registered during February 2022 were under the ₹50-lakh ticket size category as compared with 76 per cent in the comparable month last year.
The share of sales registrations of all other ticket-size segments stayed stable or have grown marginally in y-o-y terms in February 2022.
The share of ₹25-50 lakh ticket size grew the most from 34 per cent in February 2021 to 52 per cent in February 2022.
“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,” it said in its latest report on Thursday.
The share of sales in all unit-sizes over 1,000 sqft constituted 85 per cent of all home sales registrations in February 2022.
March 10, 2022