The residential property registrations in Hyderabad, Rangareddy and Sangareddy districts stood at 21,988 units during Jan-Nov 2021, a 16% growth over 2020.
Knight Frank India, a leading real estate consultancy, said today that the annual residential property registrations in three (Hyderabad, Rangareddy and Sangareddy districts) of the four districts that constitute the Hyderabad residential market stood at 21,988 units in the January to November 2021 period, a 16% growth over the same period in 2020.
The end of the year is a typically slow period in Hyderabad's residential market with homebuyers preferring to postpone their purchases to the first half of the next year which is considered more auspicious. Thus, the January - March 2021 period accounted for 41% of the total sales registrations during the year (11 months, that is) while just 16% of total sales occurred in the September - November 2021 period, the consultancy said.
Despite it being a traditionally slow period for sales, the September - November period in 2021 recorded above average growth in YoY terms for every month in this period. This along with an increasing number of enquiries at project sites showed growing homebuyer interest in the Hyderabad market, Knight Frank said.
Staying consistent with 2020, 66% of the residential sales registered during the January - November period occurred in the under INR 50 lakh ticket size. However, a closer inspection revealed that the share of sales of the INR 25 - 50 lakh ticket size improved from 31% in 2020 to 34% in 2021, while that of the INR 25 lakh and below category declined to 32% in 2021 compared to 35% previously. This signified that stress was still being felt in the lower ticket sizes due to the threat of income disruption caused by the economic impact of the pandemic, the consultancy claimed.
Prices had remained resilient in Hyderabad during the worst of the pandemic in 2020, and had grown steadily in 2021, Kight Franck said. The weighted average transacted price of residential properties showed a healthy YoY growth of 5.8% in the nine-month period ending November 2021, depicting the underlying momentum of the market.
While total sales grew by 16% in YoY terms during January-November 2021 for the three districts, sales in Hyderabad district grew by 58% YoY during the same period. Even in terms of share of total sales, Hyderabad district grew from 29% during January - November 2020 to 45% in YTD November 2021. Transacted prices similarly outperformed, growing by 16.9% in the January - November 2021 period.
Shishir Baijal, Chairman and Managing Director, Knight Frank, said, "Hyderabad continues to be among the most attractive homebuyer markets, with homebuyer demand and residential prices growing steadily despite the absence of any regulatory interventions such as the stamp duty cuts applied by the Maharashtra, Karnataka and West Bengal governments. While recent developments such as the relaxation in FSI restrictions is causing apprehensions of potential overbuilding and an overburdening of infrastructure in the city, the underlying market fundamentals continue to inspire confidence."