Hyderabad registers 5,568 apartment sales in January 2022

• INR 2,695 Cr worth of residential properties transacted in Hyderabad

• 71% of apartment sold were under INR 50 lakhs

• Average transacted price rise by 7.8% YoY

Hyderabad : Hyderabad has recorded new home registrations of 5,568 units in January 2022, noted Knight Frank India, country’s leading real estate consultancy. The third wave of the pandemic resulted in a drop of 27% Y-o-Y over January 2021 in the home registrations in Hyderabad. Regular market operations such as site visits and registration of documents were adversely affected due to mobility restrictions during the month. 71% of all homes registered in the month of January were below INR 5 million (mn) or INR 50 lakhs. A total INR 2,695 Cr worth of residential properties was transacted in the Hyderabad residential market consisting of four districts – Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

“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. We expect that sales registration volumes in the market should regain lost ground once normal market operations resume, given that other market indicators such as prices continue to see steady growth despite the impact of the pandemic”, said Shishir Baijal, Chairman and Managing Director, Knight Frank India

Lion’s share of sales below INR 50 lakhs

Compared to 75% in January 2021, 71% of residential sales registered during January 2022 have occurred for less than INR 5 mn 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 INR 2.5 mn 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. INR 2.5-5 mn 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.

Record sales growth in units over 1,000 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 Y-o-Y terms in January 2022. Sparked by the pandemic, the homebuyer trend of looking to upgrade and moving into larger living quarters also continued to hold strong during January 2022.

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.

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% Y-o-Y in January 2022, and have grown the most in the Medchal-Malkajgiri district by 8.7% in during the period.