PNS|Hyderabad
Houses are getting costlier in Hyderabad. Residential prices in Hyderabad grew by 10% YoY to Rs 5,410 per sq.ft, the highest in the country. The sales of houses grew most in Hyderabad at 5% YoY. Mumbai and Bengaluru saw a fall of 8% and 2% YoY respectively.
In terms of annual percentage increment, Hyderabad witnessed an increase of 5% YoY with a sales volume of 15,355 units. In its latest report, Knight Frank India noted that the residential sector recorded a sale of 1,56,640 units in H1 2023, marginally lower by 1% YoY (January – June 2023) but 1.7% higher compared to H2 2022.
The demand remained consistently high in H1 2023 even though annual growth slipped marginally. The sales volume was the second highest in almost 10 years. The industry continues to consolidate with residential developments steadily shifting into the hands of stronger developers who were able to weather the storm created by the corona pandemic.
Hyderabad, NCR, Kolkata and Chennai saw positive growth, while Bengaluru and Mumbai witnessed sales that are near decade-high. New launches were steady in all key markets. Pune and Bengaluru saw double-digit growth in the number of new project launches.
Shishir Baijal, the Chairman and Managing Director of Knight Frank India said that residence sales have been strong in most markets during the first half of 2023. The main drivers of market momentum are mid and premium-segment homebuyers, who possess the financial capability to purchase a home.
On the other hand, the fallout of headwinds has been that the affordable housing segment saw a significant deceleration in volume as well as market share. For the mid and premium segment, it is interesting to note that demand remained robust despite the increase in home loan rates during the first few months of the year, which highlights the enduring strength of the market.
With a promising pipeline of new project launches and high consumer enthusiasm, we anticipate that market the will continue to grow throughout the year, Knight Frank India said in its report.
