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Hyderabad’s real estate market saw remarkable growth in the first nine months of 2024. The city recorded home sales worth ₹36,461 crore, marking a 34% year-on-year increase with a total of 59,386 registered properties. A recent report by Knight Frank India highlights these trends while also analyzing the seasonal impact of Shradh/Pitra Paksha and shifting buyer preferences for premium homes.

Record Sales in 2024: A Growth Story

Increased Sales and Registrations
From January to September 2024, Hyderabad’s residential market achieved a 34% annual growth in sales value, while the number of property registrations rose by 13%. The key areas contributing to these figures include Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy districts, covering both primary and secondary real estate markets.

Impact of Shradh/Pitra Paksha on Sales
Despite the high growth rates, September 2024 saw a dip in sales. Revenues fell by 18% year-on-year to ₹2,820 crore, and registrations decreased by 22% to 4,903 units. This decline is attributed to the Shradh/Pitra Paksha period (September 17–October 2), considered inauspicious for property transactions.

Shift in Buyer Preferences: Demand for Premium Homes on the Rise

Increased Interest in High-Value Properties
The demand for homes priced at ₹1 crore and above rose significantly in 2024, reflecting changing buyer preferences. In the first nine months, properties in this segment constituted 14% of total sales, up from 9% the previous year. Registrations for these high-value homes surged by 79%, spurred by economic growth and favorable lending rates.

Focus on Spacious Layouts
In September 2024, 68% of registered properties were between 1,000 and 2,000 square feet. There was also a noticeable increase in demand for properties larger than 2,000 square feet, with registrations in this category rising from 11% to 13%.“More homebuyers are looking for spacious layouts and premium amenities, reflecting a broader national shift towards high-end housing,” noted Shishir Baijal, Chairman and Managing Director of Knight Frank India. This trend aligns with a citywide push toward upscale living, driven by buyer confidence and economic stability.

District-Level Dynamics: Medchal-Malkajgiri Leads in Registrations

Distribution of Sales Across Districts
Medchal-Malkajgiri district led the market with 42% of all property registrations, down slightly from 45% in September 2023. Rangareddy followed with 39%, while Hyderabad contributed 19% to the total.Increase in Property Prices
The report also indicated a 3% year-on-year increase in the weighted average price of residential properties in September 2024. Medchal-Malkajgiri witnessed the highest rise at 7%, while Rangareddy and Sangareddy experienced annual price increases of 3% and 2%, respectively.

Consumer Trends: Preference for Larger Homes

Shifting Preferences Toward 3BHK Units
The report revealed a trend shift toward larger homes, with the share of 3BHK units increasing from 60% in September 2023 to 70% in September 2024. Conversely, the introduction of 2BHK units decreased from 29% to 27%, highlighting a growing consumer preference for spacious living areas.

Luxury Segment in Demand
High-value transactions became more common, with five major deals in September 2024 involving properties over 3,000 square feet and valued at ₹4.3 crore. This shift emphasizes a trend toward luxurious homes with superior amenities and larger spaces.

Conclusion

The Hyderabad real estate market in 2024 underscores robust growth and a shift in buyer preferences, with an increasing inclination toward high-value, spacious homes. Economic stability, supportive interest rates, and changing consumer aspirations have driven this demand. As buyers increasingly seek luxurious properties with premium features, Hyderabad’s market dynamics are expected to adapt, making it a hub for upscale living and investment.