The Hyderabad real estate market is showing impressive growth, with expanding residential markets and new areas showing promise for development. The western zone is a particularly successful area, attracting local buyers and young investors from across the country and even the NRI community.
Locations such as Tellapur, Kollur, Prestige City Wing Budvel, Gandipet, and Narsingi have seen the most development activity in the past year, and the city as a whole recorded a 28% YoY growth in housing sales volumes in 2022. New launches also saw a substantial rise, with 43,847 units added in 2022.
The west zone accounted for 62% of all sales in H2 2022, and mid-range housing and high-value properties both saw strong demand. Despite geopolitical obstacles and an increase in mortgage rates, the Hyderabad residential sector is seeing an increase in registrations and remains optimistic about the future.
The Knight Frank India report also noted that buyer sentiment continued to remain strong despite a sharp rise in interest rates in the second half of 2022. This indicates that the Hyderabad real estate market is resilient and able to withstand challenging circumstances.
Moreover, the report highlighted the city’s diverse offerings to match every need and budget, with mid-range housing accounting for 45% of sales in the second half of 2022, while the ticket size segment of Rs 1 crore and above saw an increase in its proportion of sales. The need to upgrade the family’s primary dwelling to meet the requirements of work and education from home has resulted in a substantial change in demand for higher-value properties.
The report also stated that the north zone of Hyderabad witnessed marginal growth in the share of total sales, increasing from 18% in July-December 2021 to 19% in the same period in 2022. This suggests that the city’s real estate market is expanding beyond its traditional boundaries, indicating a positive outlook for future growth.
In conclusion, the Hyderabad real estate market is showing remarkable progress and resilience, with expanding residential markets and new areas showing promise for development. The western zone continues to be the undisputed heart and soul of the city’s realty success story, and the city as a whole is optimistic about the future despite geopolitical developments and increasing mortgage rates.
Additionally, the COVID-19 pandemic has led to an increased demand for larger homes with dedicated workspaces, as remote work becomes more prevalent. This has created a surge in demand for properties with larger square footage and more amenities, such as home offices, outdoor spaces, and recreational facilities.
Overall, the real estate market in Hyderabad has shown remarkable resilience and growth, even in the face of external factors such as the pandemic and geopolitical developments. The city continues to attract buyers and investors from both within the state and across the country, with a variety of housing options available to suit different budgets and needs. With the continued growth and development of new areas and the expansion of existing ones, the future looks bright for the real estate market in Hyderabad.