With 15% increase, Hyderabad records second highest sale of residential units in Q1FY24
Price levels in Hyderabad saw a 13 percent rise as the focus shifted to the development of premium high-rise properties.
By Sistla Dakshina Murthy Published on 18 May 2024 4:07 AM GMT
Hyderabad: Hyderabad has recorded the second highest sale of residential units after Mumbai in the first quarter of the financial year 2024.
Around 9,550 residential units were sold, which is a 15 percent increase compared to last year (in the first quarter-Q1 2024), as per the latest assessment from Knight Frank India.
Secondly, price levels in Hyderabad saw a 13 percent rise as the focus shifted to the development of premium high-rise properties. The Southwest region of Hyderabad, which includes Kokapet, Manikonda, Puppalaguda, and Shaikpet, experienced a 15 percent year-on-year (YoY) increase in average prices, whereas the Central Hyderabad region, which includes Himayat Nagar, Somajiguda, Begumpet, and Ameerpet, saw a little decrease in average prices.
The need for larger living spaces and an upgraded lifestyle which was sparked during the pandemic continues to fuel demand in this segment. Sales in this segment have grown by 51 percent YoY and it has been the primary driver for all sales growth during the quarter. Sales in the Rs 5-10 million and less than Rs 5 million categories have dropped by 10 percent and 6 percent YoY respectively as homebuyers' focus shifted to the premium-priced category.
Homebuyers have been more inclined to acquire ready or near-ready inventory to minimize completion risk seen during past periods. However, the heightened demand over the past few quarters has depleted the stock of older inventory, and consumers are now increasingly willing to acquire newly launched properties at relatively lower prices. This is reflected in the average age of inventory decreasing to 15.9 quarters in Q1 2024 from 16.7 quarters during the year-ago period.
The unsold inventory level has increased by 4 percent in YoY terms as fresh development activity has intensified. However, this must be read in conjunction with the sales momentum to arrive at a better assessment of market health, as per the latest assessment from Knight Frank India.
