Property registrations dip in July

Residential properties over ₹50 lakh and above witnessed fewer transactions in Hyderabad

Hyderabad has recorded registrations of 4,313 units of residential properties in July 2022, which was lower by 20% month on month (MoM). Properties over ₹50 lakh and above witnessed fewer transactions in the last month contributing to the slowdown.

The drop was caused by adverse sentiments towards major investment decisions in ‘Ashada Masam’ combined with heightened uncertainty over rising interest rates. Total value of properties transacted last month stood at ₹2,101 crore, also registering a decline of 26% MoM, said the latest real estate report from Knight Frank-India.

Since the beginning of the year, the city has seen sales of 40,897 residential units with a total worth of ₹20,023 crore. The city’s residential market includes four districts — Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy, said the research agency.

Homes in the price band of ₹25 lakh – ₹50 lakh constituted 56%, which is an increase from a share of 34% in July 2021. Demand in the less-than-₹25 lakh ticket-size, however, weakened with its share constituting 18% compared to 35% a year ago.

Cumulative share of sales registrations for properties with ticket-sizes homes in the size of 1,000 – 2,000 sq. ft. constituted 72% of all sales registered during the period. The trend of homebuyers looking to upgrade and move into larger living quarters, that was sparked by the pandemic, continued to hold strong in July 2022 as well, claimed the report.

A district-level study shows that 41% home sales registrations were in the Medchal-Malkajgiri district followed by Rangareddy district at 38% and 16% in Hyderabad. Weighted average prices of transacted residential properties, as per the registration data, has grown by 9% year on year with Sangareddy district seeing steepest rise of 27% indicating that higher value homes were sold in this location during this period.

Knight Frank India chairman and managing director Shishir Baijal said residential registrations and revenues from registrations have seen a decline. The trend could continue with rising home loan rates and an increase in prices in the market but, the “strength of the latent demand in the market is expected to keep the market buoyant in mid to long–term basis, given the overall economic growth and the rise in income levels,” he added, in a release.