Residential property registration fell by 18% in Oct-Dec in Telangana

27 Jan 2023 CW Team

According to Knight Frank, the residential market in Hyderabad, made up of four districts, Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy registered 68,519 residential units, a decline of 18% from the previous year. According to Vivek Rathi, Director-Research, Knight Frank, "It will be worthwhile to understand that there is a lag of 18-36 months from the time of purchase to the time of property registrations; therefore, while sales momentum continues, the registrations were lower in 2022. This number will improve as projects approach completion.”

Additionally, the overall sales value of these units decreased by 10% amounting to INR 336.05 billion. According to Knight Frank, residential units priced between INR 2.5 and 5 million made up 54% of all registrations in December 2022, up from 36% in December 2021. “This year will be a transition period as the market has touched the ceiling after a five-year run in terms of investors. While the end-user market continues to witness traction, investors have to resell to generate liquidity and reinvest in the property, said Sumanth Reddy, Vice Chairman, National Association of Realtors.

According to the most recent regulation data, demand for tickets priced under INR 2.5 million declined, with its share falling to just 17% from 40% a year before. Additionally, the share of properties with 1,000 square feet or more decreased from 73% in December 2021 to 70% in December 2022. However, in December 2022, the weighted average price of residential properties that were traded rose by 16% YoY. In December 2022, the Sangareddy district experienced the highest YoY growth of 30%, showing that more expensive residences were sold in this area during this time.

According to Vineet Surana, MD, APS Property Solutions, "Both land and residential prices growth in the Hyderabad market has been strong in recent times. With higher value property being sold in December 2022, the prices are expected to stabilise in the coming quarters.”