Home registrations in Hyderabad down 25% to 5,146 units in Feb: Report

The registration of homes in Hyderabad area fell 25 per cent year-on-year to 5,146 units in February, according to Knight Frank India.

The Hyderabad residential market includes four districts of Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.

The increase in registration costs (upward revision in registration/market values effective February 1, 2022) for the second time in FY22, has slowed down home sales, the consultant said in a statement.

The rise in registration costs has hit low-priced homes -- less than Rs 25 lakh-- the most. The sales registrations in this category reduced significantly to a mere 844 units in February 2022 as against a much robust 2,888 units in February 2021.

While total sales have dropped by 25 per cent in y-o-y terms in February 2022 for the four districts, Knight Frank said the Hyderabad district saw a 64 per cent y-o-y (year-on-year) drop in sales registrations during the period under review.

The weighted average transacted price of residential properties, as reflected by the registration data, has grown by 21 per cent y-o-y in February 2022.

Knight Frank India CMD Shishir Baijal said: Hyderabad has been among the strongest residential markets in the country in terms of sales price growth for the past few years."

However, he said sales registration momentum has been hindered in the first two months of 2022 due to the operational restrictions in January caused by the Omicron virus and increased property registration costs thereafter in February.

While this slowdown is notable especially in light of the change in behaviour of the price-sensitive homebuyer in the less than Rs 25 lakh category, he said there is no immediate cause for concern.

Baijal expects the pace of registrations to normalise over the course of the year.