The residential market in Hyderabad is declining for several reasons.

The residential market in Hyderabad is declining for several reasons.

The residential market in Hyderabad is declining for several reasons.

Hyderabad: According to the most recent assessment by Knight Frank India, the city registered 4,313 residential units in July 2022, a 20% month-over-month decrease (MoM). Less business was transacted on properties worth more than Rs 50 lakh in the previous month, which contributed to the slowdown.
The decline was brought on by negative opinions of important Ashada Masam investment decisions as well as increased skepticism about rising interest rates. The total amount of real estate transactions in July 2022 was Rs 2,101 crore, a decrease of 26% MoM. The city has seen the sales of 40,897 residential units at a total of Rs 20,023 crore since the year's beginning. Four districts make up the Hyderabad residential market: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

Homes in the price range of Rs 25 to 50 lakh made up 56% of all residential sales that were recorded during July 2022, up from a share of 34% in July 2021.
However, demand for tickets priced under Rs 25 lakh declined, with its proportion falling to 18% from 35% a year earlier. From 31% in July 2021, the total share of sales registrations for properties with ticket prices of Rs. 50 lakh and more fell to 26% in July 2022.

Homes between 1,000 and 2,000 square feet in size made up 72% of all sales recorded during the time. The pandemic-sparked trend of purchasers seeking to upgrade and relocate into larger living spaces persisted in July 2022 as well. According to a district-level survey, the Medchal-Malkajgiri district registered 41% of all home sales, followed by the Rangareddy district at 38%. In July 2022, the Hyderabad district's percentage of all registrations was 16%.

According to registration data, the weighted average price of residential properties that were transferred increased by 9% YoY in July 2022. In July 2022, the Sangareddy district experienced the highest YoY growth of 27%, indicating that higher-value residences were sold in this area at this time. All micro markets in Hyderabad experienced ongoing substantial price rises.

The Hyderabad residential market, which has been largely resilient during the pandemic, recorded some decline in activities in July 2022 due to a variety of reasons, ranging from an increase in prices to an upward revision of home loan rates, according to Shishir Baijal, Chairman & Managing Director, Knight Frank India. This month has seen a decrease in residential registrations and state registration revenue. Going forward, we do anticipate some short-term moderation in activity due to rising home loan rates and an increase in prices in the market, but given the overall economic growth and the rise in income levels, we anticipate that the market's robust latent demand will keep it buoyant in the mid to long term.

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