Despite having the nation’s highest price inflation, residential sales in Hyderabad continued to flourish. The city’s residential real estate sector has witnessed a remarkable 5% year-on-year surge in sales during the first half of 2023, with a total of 15,355 units sold, says a new study released by a realty analysis firm. This growth rate stands as the highest among the top eight cities in the country.
The data was revealed in Knight Frank’s ‘India Real Estate-Residential and office Market January - June 2023’ report. During COVID-19 pandemic and post the ebbing of the pandemic, the sale volume continued to remain relatively steady in Hyderabad as home-buyer sentiments remain sanguine, the report stated.
The highest numbers of residential units sold across the country was 40,798 in Mumbai, followed by 30,114 in NCR; 26,247 in Bangalore; 21,670 in Pune; 7,982 in Ahmedabad, 7,324 in Kolkata and 7,150 in Chennai. Despite this, the growth was negative in Mumbai, Ahmedabad, Bangalore and Pune whereas Chennai, Kolkata and NCR had 3% growth rate.
The data further underscores that the western part of Hyderabad remains the favoured choice for home buyers during the first half of the year, accounting for a substantial 60% of total sales activity. This preference is attributed to the region’s proximity to key office hubs like Hitech City, Financial District, Madhapur, Gachibowli, Nanakramguda, and Kondapur. The presence of robust infrastructure has significantly contributed to its appeal.
A longer-term analysis highlights a gradual decline in the share of properties valued at less than ₹50 lakh, dropping from 29% in the first half of 2018 to 13% in the first half of 2023. In contrast, the mid-range segment, encompassing properties priced between ₹50 lakh and ₹1 crore, constituted 40% of overall sales during H1 2023. This segment’s share has remained relatively stable, fluctuating between 42% and 52% since H1 2018. The high-value segment, representing homes priced at over ₹1 crore, has experienced remarkable growth, surging from 18% in H1 2019 to an impressive 45% in H1 2023.
Meanwhile, the city’s office real estate market faced an 8% year-on-year decline, with a total of 2.9 million square feet transacted during the first half of 2023 as against 6.7 million square feet in the previous year. The report attributes this dip in transactions to subdued office leasing, particularly in the first quarter. The IT industry, a vital contributor to the State’s economy, grappled with global challenges during this period. Among the transactions, third-party IT players accounted for 52%, while businesses with a focus on India constituted 25% of leased office space. Global Capability Centres (GCC) accounted for 6% of the transactions, contributing to the diverse landscape of Hyderabad’s office market.”
