Hyderabad was the best performing residential market in terms of primary sales, among the top eight in India during 2021. However, the drop in registration activity caused by the mobility restrictions due to the third wave of COVID-19 in January this year have impacted sales across many markets in India, including Hyderabad. Yet, with affordable housing driving the sales registration volumes ,, holding a lion’s share of 71% in transacted residential properties worth Rs 2695 crore, the market should regain lost ground soon. Especially considering that other market indicators such as prices continue to see steady growth despite the impact of the pandemic.
Lion’s share of sales below Rs 50 lakhs
Compared to 75% in January 2021, 71% of residential sales registered during January 2022 have occurred for less than Rs 50 lakhs ticket-size. This is traditionally the segment that constitutes the highest sales registrations in Hyderabad. The segment’s share has receded by 9 percentage points from 41% of total sales registrations in January 2021 to 32% in January 2022, accounting for the lower volume of sales registrations in January 2022. Within the segment, demand for less than Rs 25 lakh ticket-size remains a little low, as was seen in 2021. Nevertheless, sales registrations for all other ticket-size segments remain stable in Y-o-Y terms in January 2022. The Rs 25-50 lakh ticket size segment’s share grew the most, from 34% in January 2021 to 39% in January 2022,far exceeding its annual share of 36% in 2021 and 31% in 2020.
| Ticket-size | January 2021 | January 2022 |
| <2.5 mn | 41% | 32% |
| 2.5-5 mn | 34% | 39% |
| 5-7.5 mn | 11% | 13% |
| 7.5-10 mn | 6% | 8% |
| 10 mn-20 mn | 6% | 6% |
| >20 mn | 2% | 2% |
Ticket-size share of sales
Record sales growth in units over 1000 sq ft
The mid and high ticket-size segments saw stability in their market shares while significant growth was noticed in the sales of all unit sizes measuring over 1,000 sq ft for Hyderabad in YoY terms in January 2022.\. Sparked by the pandemic, the homebuyer trend of looking to upgrade and moving into larger living houses also continued to hold strong during January 2022.
| Unit-size (sq ft) | January 2021 | January 2022 |
| 0-500 | 3% | 2% |
| 500-1000 | 16% | 13% |
| 1000-2000 | 70% | 72% |
| 2000-3000 | 8% | 10% |
| >3000 | 3% | 3% |
Sales split by unit size; Source: Knight Frank Research
Lowest sales drop, highest registrations in Rangareddy
Sales in Rangareddy district dropped only by 7% compared to the total sales drop by 27% Y-o-Y during January 2022 for all four districts. In terms of total sales, the district accounted for 48% of the residential units registered during the month, compared to 38% in 2021.
| District | January 2021 | January 2022 |
| Hyderabad | 22% | 14% |
| Medchal-Malkajgiri | 37% | 35% |
| Rangareddy | 38% | 48% |
| Sangareddy | 3% | 3% |
Sales split by district
Highest average transacted price in Medchal -Malkajgiri
During the pandemic lows of 2020, prices remained resilient in Hyderabad, growing steadily in 2021. The weighted average transacted price of residential properties, as reflected by the registration data has grown by 7.8% YoY in January 2022, and have grown the most in the Medchal-Malkajgiri district by 8.7% in during the period.
| District | January 2022 |
| Hyderabad | 0.8% |
| Medchal-Malkajgiri | 8.7% |
| Rangareddy | 6.3% |
| Sangareddy | 6.0% |
| Total Market | 7.8% |
Price growth by district (Y-o-Y%);
Source: Knight Frank Research
1
2
3
4
5
6