These insights were in the ‘India Real Estate – Residential and Office Market Report’. Representational pic
| Photo Credit: Getty Images/iStockphoto
Hyderabad witnessed a surge in residential property sale in 2023, reaching a total of 32,880 units, marking a substantial 6% Year on Year (YoY) growth. Nearly half of these transactions occurred in the upscale segment, valued at ₹1 crore and above. Additionally, developers launched 46,985 units (not sold) during the year, with 43% of these being in the premium category.
The highest demand was observed in the ₹1 crore and above segment, with 16,086 units sold, surpassing the 2022 figures of 11,632 units. The next segment, priced between ₹50 lakh and ₹1 crore, saw 13,120 units being sold, slightly lower than the previous year’s 13,784 units. The less than ₹50 lakh category saw a decline, with 3,674 units sold compared to 5,630 units in 2022.
These insights were unveiled in the ‘India Real Estate – Residential and Office Market Report’ by Knight Frank. Key micro markets across the city exhibited double-digit rental appreciation. Kokapet recorded a 39% yearly change in price, ranging from ₹10,045 to ₹12,500 per square feet, while Manikonda and Rajendra Nagar saw rise of 28% and 20%, respectively. Banjara Hills, with a price range of ₹14,400 to ₹16,000 per square feet, registered a 12% yearly change.
Office leasing market
On the commercial front, Hyderabad’s office leasing market experienced a robust 32% YoY growth in 2023, totalling 8.8 million square feet in transactions. Global Capability Centres (GCCs), representing offshore units of multinational corporations, led the leasing activity, securing 46% of the leased office spaces, amounting to 4.1 million square feet. This marked an increase from 2.7 million square feet in 2022, constituting 40% of leased spaces.
The report highlighted that third party IT services, focused on outsourcing services abroad, constituted 28% of total transactions, experiencing a significant rise from 1.6 million square feet in 2022 to 2.5 million square feet in 2023. Additionally, businesses catering primarily to the Indian market accounted for 15% of the leased office space, recording a leasing volume of 1.3 million square feet.
Rentals
In terms of rentals, the suburban business district, including Hi-Tec City, Kondapur, Manikonda, Kukatpally and Raidurg, recorded the highest average transacted rental range at ₹68-75 per square feet per month.
