According to the most recent Knight Frank India report, Hyderabad registered 5,787 residential properties in October 2023, representing a 25% year-on-year (YoY) increase. The overall value of properties registered during the month was 3,170 crore (Cr), up 41% year on year, showing a shift toward the sale of higher-priced dwellings. Hyderabad’s residential market is divided into four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

The biggest percentage of property registrations in Hyderabad in October 2023 were in the price range of 25 – 50 lakh, accounting for 50% of all registrations. Property valued under 25 lakh comprised 16% of overall registration, a decrease from the 22% proportion recorded in October 2022. In October 2023, the proportion of sales registrations for properties with ticket quantities of 1 crore and above was 10%, up from 8% in October 2022.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The Hyderabad housing market is currently experiencing a significant surge in demand. This demand is centred on the desire for improved residential environments with apartment complexes that offer a wide range of amenities. Additionally, the Reserve Bank of India’s (RBI) decision to keep the interest rates stable since April 2023 has significantly boosted the confidence of homebuyers. This optimistic market sentiment is clearly reflected in the increasing number of property developments. Developers are nimbly adapting to meet the evolving needs of their discerning clientele.

In October 2023, registered homes were clustered in the 1,000-2,000 sq ft bracket, accounting for 69% of registrations. Smaller houses (500-1,000 square feet) had a decrease in demand, with registrations decreasing to 16% in October 2023 from 21% in October 2022. However, demand for residences bigger than 2,000 square feet increased, with registrations increasing to 12% in October 2023 from 10% in October 2022.

According to a district-level survey, Medchal-Malkajgiri continuously holds the top spot with 43% of house sales registrations, while Rangareddy district comes in second with 42% of sales registrations. In October 2023, the Hyderabad district accounted for 14% of all registrations.

The weighted average price of traded residential properties increased by 6.8% year on year in October 2023. The districts of Hyderabad, Medchal-Malkajgiri, and Rangareddy all saw a 6% rise in property prices.

Residential sales in Hyderabad in October 2023 were mostly in houses sized 1,000-2,000 sq ft, with the greatest registrations occurring in the 25-50 lakh price category. However, in addition to the concentration of bulk transactions, purchasers also purchased luxurious residences that are larger and have greater facilities and amenities. Some of these transactions occurred in places such as Hyderabad and Rangareddy, where the properties were larger than 3,000 square feet and valued at more than 4.5 crore.

It is important to study the launch patterns in the Hyderabad real estate market in the perspective of demand analysis. In keeping with market homebuyer preferences, building activity has been heavily skewed toward 3 BHK flats, with 2 BHK units following suit. Developers in Hyderabad have significantly emphasized the installation of three-bedroom houses, demonstrating a definite preference for bigger homes. This strategy emphasis seems to correspond with shifting homebuyer preferences, who are increasingly wanting larger living areas, presumably to support expanding families, while also accommodating those with smaller households or those emphasizing cost, who opt for 2BHK homes.