Hyderabad Real Estate Trends for March 2024: Understand the Most Popular Price Range, Size, and Location

According to Knight Frank India’s most recent data, there were 6,416 residential properties registered in Hyderabad in March 2024, which represents an 8% YoY fall due to a high base. The total value of properties registered in the month was Rs 4,039 crore (Cr), up 12% year over year and suggesting a shift in the market toward the sale of more expensive dwellings.

The Hyderabad residential market encompasses house sales relevant to the main and secondary real estate markets and is divided into four districts: Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy.

Cost Group

Properties in the Rs 25–50 lakh price range made up the most prevalent price category in Hyderabad in March 2024, accounting for 45% of all registrations.

However, the percentage of properties valued under Rs 25 lakhs fell, accounting for 14% of all registrations. Nonetheless, the percentage of sales registrations for houses costing one crore or more increased to 16% in March 2024 from 10% in March 2023, a notable rise that also increased the city’s weighted average.

Seventy percent of the properties registered in March 2024 were apartments with a square footage between 1,000 and 2,000 square feet. The number of registrations for smaller residences (those under 1,000 square feet) decreased from 20% in March 2023 to 16% in March 2024, indicating a decline in demand for these properties. On the other hand, demand increased for homes greater than 2,000 square feet, with registrations for these properties climbing from 10% in March 2023 to 15% in March 2024.

The trend of Rangareddy

District-wise, Rangareddy was the biggest source of registrations in March 2024, accounting for 46% of the market—a significant rise over the 34% it held in the same month the previous year. In March 2024, the districts of Medchal-Malkajgiri and Hyderabad accounted for 40% and 14%, respectively, of all registrations.

In March 2024, there was a notable 12% YoY rise in the weighted average price of residential properties that were exchanged. Of the districts, Medchal-Malkajgiri had the most YoY growth at 13%, while Hyderabad and Ranga Reddy saw increases of 3% and 8%, respectively.

In addition to purchasing larger, more luxurious homes with superior facilities, purchasers increasingly concentrated on buying bulk deals.

The top five transactions for March 2024 all took place in Rangareddy, and each of the properties had a size over 3,000 square feet and a price tag exceeding Rs 5.3 crores. Additionally, Kondapur was home to four of the top five, with Kokapet in the West recording the fifth.

Hyderabad’s residential market is still seeing strong demand, especially for high-end properties, according to Shishir Baijal, chairman and managing director of Knight Frank India. Prices have been steadily rising since the epidemic started, and this trend persisted through March. Buyers have consistently preferred higher-value residences with greater room and amenities. Developers are responding to these changes in the market by being flexible and adaptive and adjusting their products to suit the evolving needs and desires of discriminating consumers.

Increased Supply of 2-BHK Apartments

An extensive examination of the Hyderabad real estate market identifies important patterns in the introduction of new apartments in the first quarter of 2024. In response to the desires of customers, developers have shown a clear preference for building two-bedroom (2-BHK) and three-bedroom (3-BHK) apartments.

The percentage of 2-BHK units launched has surged, rising from 23% to 32% in the preceding year. In the meantime, the 3-BHK category held the lion’s share of the market thanks to its steady attractiveness.

In comparison, there was a decline in the introduction of 1-BHK, 2.5-BHK, 3.5-BHK, 4-BHK, and 5-BHK apartments.

Notably, in Q1 2024, the launches of the 2.5-BHK, 3.5-BHK, and 5-BHK categories decreased to zero. These patterns highlight how dynamic the real estate industry is, mirroring changes in customer preferences and developer tactics. In the next few months, it will be fascinating to see what launch approach developers choose.