Hyderabad real estate sector dips 9 per cent in 11 months

December 8, 2022

The real-estate market in Hyderabad has declined by 9 per cent in value terms, recording an aggregate registration value of Rs 30,415 crore in the first 11 months of the calendar year 2022, as against Rs 33,531 crore in the comparable period last year.

In terms of the number of units sold, the market declined by 17 per cent at 62,159 units, as against 75,453 units in the same period last year, according to property consultants and research firm Knight Frank India.

The Hyderabad market, however, grew 28 per cent month-on-month with an aggregate registration value of Rs 2,891 crore in November 2022, as against Rs 3,422 crore in the previous month.

The Hyderabad residential market includes the four districts of Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

“The city’s residential market saw an uptick in registrations in November despite major headwinds from geopolitical developments and a spike in home mortgage rates over the last few quarters,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

“The more sensitive lower ticket sector is affected, however, the demand for higher value homes remains strong, thus maintaining the city’s optimistic outlook,” he said in a statement on Thursday.

Units in the Rs 25-50 lakh price band witnessed huge demand. About 50 per cent of all the units sold in November 2022 were in this band, as against 37 per cent in the same month last year.

Registration of housing units in the lower segment (units under Rs 25 lakh) declined to 22 per cent of the total in November 2022, against 39 per cent in the same month last year.

“The increase in registrations for high-value homes over the course of the year clearly reflects the city’s upbeat outlook,” said Samson Arthur, Senior Branch Director of Knight Frank India.

The weighted average price per square feet grew 18 per cent to Rs 4,198 in Hyderabad district.

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