Hyderabad: It's been just 138 days since the new Congress government took over in Telangana state but it has been successful in putting the real estate sector back on track. The real estate sector is booming, propelled by a surge in high-value home registrations in Hyderabad.
“Properties worth more than Rs 4,000 crore were sold in March 2024,” said Knight Frank India, indicating how the realty sector bounced back within a short period of time. Realtors say this robust growth is contrary to speculations that the real estate will be hit if the BRS loses power in the state.
They attribute the realty boom to the proactive governance, real estate-friendly policies being adopted by Chief Minister A. Revanth Reddy. The previous BRS government has built up a narrative ahead of the Assembly polls that the Hyderabad real estate will adversely affected if the Congress comes to power.
The voters seem to have believed this narrative due to which the BRS performed exceedingly well in GHMC and HMDA limits by making a clean sweep in Assembly polls while the Congress fared badly.
The Knight Frank India report on property registrations and Indian Meteorological Department’s report predicting a higher than normal rainfall during the upcoming southwest monsoon has boosted the morale of the Congress government while upsetting the calculations of opposition parties which relied on the real estate slump and drought conditions to revive their political fortunes in Telangana.
The data showed that the property registrations worth Rs 3,293 crore were done in January 2024 uring the Congress regime as against Rs 2,650 growth in January 2023 during the BRS regime, indicating a growth of 24 per cent. Similarly, property registration growth rate almost doubled to 46 per cent in February 2024 to Rs 4,362 crore from Rs 2,987 crore.
In March, the property registrations increased from Rs 3,602 crore to Rs 4,039 crore, indicating a growth rate of 12 per cent. The comparatively lower growth is attributed to the Lok Sabha elections scheduled and model code of conduct.
Generally, real estate will witness downtrend during general elections on account of the Election Commission's restrictions on carrying cash, bank transactions. Despite this, the realty sector witnessed 12 per cent growth in March.
In terms of housing units sold, February 2024 witnessed a sharp increase to 7,135 units from 5,725 units in February 2023. However, in January and March this year, the sales were little lower when compared with last year but there was an increase in high-value registrations. In January this year, 5,444 units were sold against 5,454 in January 2023. In March this year, 6,416 units were sold against 6,959 units in March 2023.
The share of properties priced between Rs 1 crore and Rs 2 crore accounted for 13 per cent of overall sales. This was eight per cent last year, the consultancy said in its report. The sale of residential properties priced above Rs 2 crore also saw a one per cent increase. Properties priced Rs 25-50 lakh accounted for 45 per cent of sales and those priced Rs 50-75 lakh were preferred by 16 per cent buyers.
Properties spanning 2,000-3,000 sq. ft were preferred by 11 per cent buyers this March, up from eight per cent last year. Houses with sizes from 1,000 sq. ft to 2,000 sq. ft accounted for 70 per cent of the sales.
The weighted average price for registered properties increased sharply by 12 per cent year-on-year in March 2024
The Hyderabad residential market includes the Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy districts and covers home sales pertinent to the primary and secondary real estate markets.
The top five deals for March 2024 have all happened in Rangareddy wherein the properties were sized more than 3,000 sq ft and valued upwards of Rs 5.3 crore. Further, four of the top five were in Kondapur and while one was in Kokapet in the western part.
“The residential market in Hyderabad continues to show robust demand, particularly for high-end homes. Since the pandemic began, prices have been on a steady upward trajectory, a trend that continued through March. Developers are showing agility and adaptability, aligning their offerings with the changing tastes and preferences of discerning buyers,” said Shishir Baijal, chairman and managing director, Knight Frank India.
Developers have shown a marked inclination towards the construction of 2-BHK and 3-BHK units. The launch of 2-BHK apartments has increased sharply, escalating from 23% in the previous year period to 32 per cent. Meanwhile, the 3-BHK category, maintaining its consistent appeal, captured the majority share of the market.
“Hyderabad sees about 6,000 units getting sold on a monthly basis. “Hyderabad market is need-based. Many investors are keen on Hyderabad. We expect the same momentum to continue in the sales in days to come. The real estate sector in the city is expected to see new policy support after the ongoing elections. Brand Hyderabad is strong and demand is intrinsic,” said V. Rajashekar Reddy, industry body Credai Hyderabad president.
