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Hyderabad real estate, which exhibited a rare resilience while withstanding the stress and strain of factors such as global financial crisis and Covid pandemic that left many major cities reeling, now seems to be stumbling badly

Under the BRS government led by K. Chandrashekar Rao and K.T. Rama Rao , the city has achieved significant strides across multiple sectors, becoming a key player in the nation’s urban transformation.

Prime office locations such as Mumbai (94%), NCR (92%), Bengaluru (86%) and Hyderabad (84%) continue to attract corporations, driving greater demand for flexible office spaces, according Knight Frank India report

The increase in absorption by Global Capability Centres (GCCs) and flex space operators can be primarily attributed for the rise in demand for large office spaces in the city, it says.

The city's affordability ratio, which compares the EMI to income, stood at 30 per cent in the first half of 2024, maintaining the same level as in 2023.

According to a report released by Knight Frank India, the first four months of 2024 registered a 92 per cent year-on-year growth in this range compared to same period last year.

The registrations were predominantly for apartments in the size range of 1,000 to 2,000 square feet, constituting 70 per cent of all registrations.

The total value of properties registered during the month stood at Rs. 3,279 crore, which is higher by 24% YoY, indicating a movement towards sale of higher value homes.

This marks the highest monthly registrations for the year, boasting a 15 per cent Year-on-Year (YoY) rise and a 16 per cent month-on-month (MoM) increase.

This upswing was attributed to the discernible shift among homebuyers who increasingly prioritize lifestyle upgrades, emphasizing amenity-rich communities in their quest for the ideal living space.

While Hyderabad is not yet hitting the 100 per cent mark like its counterparts Bengaluru and Mumbai, recent reports suggest a resurgence, signaling a steady return to office work.

Hyderabad maintained an unchanged affordability index of 30 per cent for both 2022 and 2023, despite a significant surge of 11 per cent in home prices during the last year.

The YoY increase indicates a movement towards sale of higher value homes in the Hyderabad residential market which includes four districts namely Hyderabad, Medchal-Malkajgiri, Rangareddyand Sangareddy.

A Knight Frank India report highlights that the city recorded a total warehousing transaction volume of 2.71 million square feet during the first half of the fiscal year 2024.

City exhibited a robust 17.71 per cent YoY growth in transactions for office spaces exceeding 100,000 square feet, reinforcing its position as a dynamic business hub in India

The total value of properties registered during the month stood at Rs. 3,378 crore which too has increased by 42% YoY indicating a movement towards sale of more expensive homes.

The city has seen a sharp decline in the sales of affordable homes during Q3 2023, spanning from July to September

August witnessed a strong preference for properties in the Rs 25 lakh to Rs 50 lakh price range, constituting 52 per cent of total registrations.

The rising EMI to income ratios across Indian cities have been partly attributed to higher home loan rates, impacting affordability for potential homeowners.

Data collated by Knight Frank India for its latest report revealed a citywide registration count of 5,557 residential properties, accompanied by 35 per cent YoY increase in the total worth of these properties, amounting to Rs 2,878 crore