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Hyderabad Residential Realty Hits Low Note

Torbit - November 13, 2022 - - 0 |

The  real estate in Hyderabad has seen the second lowest  number of   residential property registrations of 4597 apartments  worth Rs 2237 crore in the month of October. The lowest number of 4400 registrations were recorded in the month of July this year. In all, 56003 residential  units worth Rs 27509 crore were registered from January to October this year. This was lower than the last year’s figure of 67685 registered  units amounting to Rs 30108 crore during the same period.  Sixty six percent of all sales registered were for homes between 1000-2000 sq ft size.

 REGISTRATIONS IN HYDERABAD

Registration (No. of units) Registration value (INR Million)
Month 2021 2022 YoY change MoM Change 2021 2022 YoY change MoM Change
January 7,592 7,343 -3% -14% 32,881 32,608 -1% -12%
February 6,877 5,435 -21% -26% 29,397 28,386 -3% -13%
March 8,260 6,722 -19% 24% 34,603 31,355 -9% 10%
April 5,903 5,366 -9% -20% 25,267 27,837 10% -11%
May 2,501 6,307 152% 18% 12,445 30,607 146% 10%
June 7,251 5,411 -25% -14% 31,697 28,421 -10% -7%
July 9,507 4,400 -54% -19% 45,729 21,279 -53% -25%
August 8,144 5,656 -31% 29% 38,090 28,453 -25% 34%
September 6,017 4,766 -21% -16% 26,296 23,784 -10% -16%
October 5,633 4,597 -18% -4% 24,685 22,368 -9% -6%
Total YTD 67,685 56,003 -17% NA 301,090 275,098 -9% NA

Residential units in the price band of INR 2.5 – 5 Mn (INR 25 – 50 lakhs) constituted 51% of the total registrations in October 2022, which is an increase from a share of 40% in October 2021. Demand in the less than INR 2.5 mn (INR 25 Lakhs) ticket-size however weakened with its share constituting 22% compared to 35% a year ago. Greater demand for larger ticket size homes remained evident as the cumulative share of sales registrations for properties with ticket-sizes of INR 5 Mn and above (> INR 50 lakhs) increased to 27% in October 2022 from 25% in October 2021.

 TICKET SIZE SHARE OF REGISTRATIONS

Ticket-size October 2021 October 2022
<2.5 mn 35% 22%
2.5-5 mn 40% 51%
5-7.5 mn 13% 13%
7.5-10 mn 7% 6%
10 mn-20 mn 5% 6%
>20 mn 1% 2%

In October 2022, the share of registrations in unit category of properties sized 500 – 1000 square feet increased to 21% compared to 17% observed in October 2021 while properties sized 1,000 square feet or higher witnessed a dip in share from 81% in October 2021 to 76% in October 2022.

 REGISTRATION SPLIT BY UNIT SIZE

Unit-size in sq ft October 2021

 

October 2022
0-500 2% 3%
500-1,000 17% 21%
1,000-2,000 71% 66%
2000-3000 8% 8%
>3000 2% 2%

Source: Knight Frank Research, Telangana Registration and Stamps Department.

According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, though  Hyderabad market is also impacted due to global headwinds and  interest rate hikes, yet it continues to remain appealing for end users with demand for larger homes remaining promising.  While the lower ticket segment is affected,  the higher value homes will continue to see momentum in the coming months keeping the outlook for the city optimistic. Samson Arthur , Senior Branch Director, Knight Frank India endorses saying that the  slowdown is anticipated to be short lived and likely to remain resilient as sentiments improve.

 

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