New residential launches in Hyderabad fell by 6% year-on-year (YoY), with 44,013 units introduced in 2024. The decline has been attributed to heightened regulatory oversight by the Hyderabad Disaster Response and Asset Protection Agency (HYDRAA), established to curb illegal constructions on encroached lands, including lakes, canals, and government property, according to the Knight Frank India’s latest report.
Despite this, the city’s residential market recorded high sales volumes, with 36,974 units sold, marking a 12% YoY growth. Prices also saw an 8% YoY increase, with prominent locations such as LB Nagar and Kompally registering annual price hikes of 11% and 10%, respectively. The average price of residential units stood at ₹5,974 per square feet.
The ₹1 crore to ₹2 crore price segment dominated the market, accounting for 45% (16,459 units) of sales. Other segments included 11,231 units priced between ₹50 lakh and ₹1 crore, 5,205 units in the ₹2 crore to ₹5 crore range, 2,650 units priced below ₹50 lakh, 1,080 units between ₹5 crore to ₹10 crore, 314 units in the ₹10 crore to ₹20 crore range, and 35 units priced between ₹20 crore and ₹50 crore.
“The year 2024 was phenomenal for Hyderabad’s residential market, with record-high transactions and improved buyer sentiment. The growing preference for larger spaces was evident in the dominance of homes priced at ₹1 crore to ₹2 crore,” said Joseph Thilak, National Director of Occupier Strategy and Solutions at Knight Frank India.
In the office space sector, Hyderabad achieved its best performance since 2020, with transaction volumes rising 17% YoY to 10.3 million square feet. The city also witnessed a 139% YoY increase in office completions, with 15.6 million square feet of new supply, the report said.
Global Capacity Centers (GCCs) of multinational corporations led the way, accounting for 49% of the total transacted office area. Businesses focused on the Indian market recorded an 82% YoY increase in transaction volumes, contributing 9% of the leased office space.
Despite the influx of new office supply, which pushed the overall vacancy rate from 14.9% in 2023 to 18.3% in 2024, Grade A buildings in sought-after areas like Hitech City showed strong demand, maintaining a vacancy rate of just 2-3%. As per the report, Hitech City alone accounted for 77% of total office leasing, reflecting its enduring appeal among occupiers.
Published – January 07, 2025 07:45 pm IST
