Hyderabad Sets Record with Over 46,000 Home Registrations in 2024

The real estate market in Hyderabad has set a new record with over 46,000 homes registered in 2024, leading to a substantial 40% year-on-year (y-o-y) surge in revenue. This milestone highlights the city’s growing prominence as a hub for real estate activity.

In July 2024 alone, Hyderabad saw homes worth Rs 4,266 crore registered, marking a 48% increase compared to the same period last year. The number of registered units in July stood at 7,124, reflecting a 28% y-o-y growth. Since the beginning of 2024, the city has accumulated a total of 46,368 home registrations, which is 17% higher than the registrations recorded by the same time in 2023.

The state's revenue from stamp duty between January and June 2024 reached Rs 28,578 crore, showing a significant 40% y-o-y growth. The Hyderabad residential market spans four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy, covering both primary and secondary real estate markets.

In July 2024, properties priced under Rs 50 lakh made up the largest segment of registrations in Hyderabad. However, this category's share of sales registrations declined from 69% in July 2023 to 61% in July 2024. In contrast, there has been a notable increase in registrations for properties priced at Rs 1 crore and above, which rose to 13% in July 2024, up from 9% in the same period last year. This shift suggests that homebuyers are increasingly favoring higher-value homes, as evidenced by a sharp 94% y-o-y increase in registrations of properties priced over Rs 1 crore in July 2024.

The majority of registered properties in July 2024 were within the 1,000 to 2,000 square feet (sq ft) range, accounting for 69% of all registrations. There was a decline in demand for smaller homes (below 1,000 sq ft), with registrations dropping to 17% in July 2024 from 21% in July 2023. Conversely, demand for larger properties (over 2,000 sq ft) saw an increase, with registrations rising to 14% from 11% over the same period.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented on the trends, saying, "The residential market in Hyderabad is witnessing a significant shift towards luxury homes with spacious layouts and enhanced amenities. This trend is part of a broader national movement towards premium housing, as seen in Hyderabad, where homes costing Rs 1 crore and above saw a 129% y-o-y increase in registrations. Since the onset of the pandemic, property prices have been steadily rising, and this trend continued through July 2024. Supported by robust economic growth and favorable interest rates, buyer confidence has surged. Hyderabad is leading this shift, with developers rapidly adapting to market changes and tailoring their offerings to meet evolving buyer demands."

At the district level, Rangareddy emerged as the leading contributor to registrations in July 2024, capturing 41% of the market, up from 37% in July 2023. Medchal-Malkajgiri and Hyderabad districts accounted for 40% and 19% of total registrations, respectively.

The weighted average price of transacted residential properties in Hyderabad saw a sharp y-o-y increase of 8% during July 2024. Rangareddy district experienced the steepest price increase of 9% y-o-y, while Medchal-Malkajgiri and Hyderabad districts saw increases of 6% and 1% y-o-y, respectively.

In addition to bulk transactions, there was a noticeable trend of homebuyers opting for larger, more luxurious properties. The top five deals in July 2024 occurred in Rangareddy and Hyderabad, where properties exceeded 3,000 sq ft and were valued at over Rs 4.3 crore. Notably, three of these top deals were located in West Hyderabad, with others in the Banjara Hills area of Central Hyderabad.

An analysis of the Hyderabad real estate market in July 2024 reveals significant trends in apartment launches. The data shows a diversification in market offerings, with 1-BHK units, previously absent in July 2023, now accounting for 2% of the market, maintaining a consistent 3% year-to-date (YTD) share for both 2023 and 2024. The share of 2BHK apartments rose from 31% to 39% in July, though YTD figures show a slight decrease from 26% to 25%. Meanwhile, the proportion of 3BHK units slightly declined from 59% to 55% in July but increased YTD from 53% to 61%, indicating strong demand. The share of 4BHK units decreased from 8% to 3% in July and from 13% to 10% YTD. These trends reflect shifting buyer preferences and a dynamic market adapting to varied housing needs.