We will compare the real estate market in Hyderabad, the sixth-largest city in India, in the first four months of 2024 to the same period in 2023.
It will help buyers of homes and apartments in the ‘City of Pearls‘ know the trends they can expect in this city’s housing market for the rest of 2024 and the coming year.
Drivers of Hyderabad’s real estate market
Among the metropolitan cities of India, Hyderabad is one of the fastest growing in terms of real estate, both in the residential and commercial sectors.
The primary drivers of this growth largely are Information Technology (IT), Information Technology-enabled services (ITeS), manufacturing, and pharma sectors, among others.
Knight Frank India, a subsidiary of a global real estate company, the capital city of Telangana, witnessed a little over 26,000 property registrations, the value of which was about INR 16,190 crore, from January 2024 to April 2024. It represents a growth of 15% year-on-year (YoY) and 40% YoY per the registration numbers and total value compared to the same period in the financial year 2023.
Values of properties sold in Hyderabad
Registrations in 2024 soared owing to higher-value homes, particularly those priced at INR 1 crore and above. The growth of the registration of these premium homes increased by 92% YoY, while mid-segment homes, priced between INR 50 lakhs and INR 1 crore, rose by 47% YoY.
These trends clearly indicate the rise in the value of the registration of more expensive homes. In April 2024, the total number of registrations of residential properties touched 6,578 units, indicating an increase of 46% YoY, with their value recording INR 4,260 crore, an increase of 86% YoY.
Greater Hyderabad is spread over four districts: Hyderabad, Rangareddy, Medchal-Malkajgiri, and Sangareddy. According to a year-to-date (YTD) assessment, the value of residential properties in the ‘City of Pearls’ priced above INR 1 crore shot up by 135% YoY.
In April 2024, most of the registered homes in India’s fourth-largest city by population ranged from 1,000 to 2,000 square feet (apartments), accounting for 70% of all these registrations.
On the other hand, the number of registrations for residential properties measuring less than 1,000 square feet fell by 16% YoY in April 2024 compared to 20% in April 2023. However, demand for larger homes in the city’s areas surpassing 2,000 square feet increased by 15% YoY in April 2024.
Growth numbers in the city in 2023
Numbers from the report, “Real Insight Residential – Annual Round-up 2023 (January–December),” demonstrate that the real estate market in Hyderabad flourished in 2023 as well. Hyderabad was the second-largest home growth market in 2023, with an annual increase of 49% in home sales. More than 50% of all home sales in Hyderabad happened in the third and fourth quarters of 2023, with sales numbers of 14,191 and 20, 491, respectively.
The largest market for home sales among metros in 2023 was Ahmedabad, which registered a 51% YoY growth compared to 2022.
Prime growth areas for commercial & residential sectors
Hyderabad’s commercial real estate market grew, thanks mainly to the growth of the IT sector, with areas like the Financial District, Gachibowli, and HITECH City attracting increasing interest from businesses on the lookout for setting up offices.
The luxury segment is growing in the upmarket districts, such as Jubilee Hills, Banjara Hills, Nanakramguda, Serilingampalli, etc., most of which are in the western zone of Hyderabad. North Hyderabad is also evincing interest from home buyers, with areas like Bachupally, Kompally, and Patancheru. Hyderabad East is also not lagging, with regions like Uppal and Pocharam stoking the interests of buyers of residential properties.
Outlook for the second half of 2024
According to data from Research by Anarock, one of India’s top real estate consultancy firms, Hyderabad’s new home launches in the first quarter of 2024 increased to 22,690 units, an increase of 57% YoY, compared to the same period in 2023, when 14,620 units were launched. A third of these launches were in the luxury home segment, priced over INR 1.5 crore.
Knight Frank India revealed that most of the registered home properties in April 2024 ranged from 1,000 to 2,000 square feet for apartments, making up about 70% of all registrations.
Data from the latest report of PropTiger.com, one of India’s renowned online real estate platforms, reveals that the sales values of Hyderabad’s housing market increased by 143% YoY to INR 23,580 crore in the first quarter of 2023, compared to INR 9,711 crore during the same period in 2023.
Final Word
Considering all these figures, it can be safely assumed that the residential market segment in Hyderabad will witness impressive growth in the latter part of 2024 and 2025. As the real estate market in Hyderabad continues to boom, those considering buying homes here can confidently proceed with their plans. If you want to be part of Hyderabad’s growth story, contact Nestcon, one of the top real estate companies in Hyderabad and Bengaluru, to book a luxurious apartment in the southern Indian metro.
If you are interested in choosing your nest with us, visit our website https://nestcon.com/.
