Hyderabad accounts for 18% share in H1 2021 residential sales: CBRE
Property prices have grown at a CAGR of 1-6 per cent across the high-end residential segment and at around 2-7 per cent across the mid segment since 2010, with Hyderabad, Bengaluru and Pune recording growth at the higher end of the range.
Hyderabad: Hyderabad has witnessed growth in residential sales in the first half of 2021 (January-June), accounting for 18 per cent share across the top seven cities of India.
The State witnessed the launch of Telangana State Building Permission Approval & Self Certification System, an integrated platform for seeking several approvals for the development of land and construction of buildings through a self-certification system within 21 days. The Telangana government also offered a 50 per cent rebate on property tax for FY21, which is expected to boost housing sales, according to CBRE South Asia.
Property prices have grown at a CAGR of 1-6 per cent across the high-end residential segment and at around 2-7 per cent across the mid segment since 2010, with Hyderabad, Bengaluru and Pune recording growth at the higher end of the range.
Pan-India scenario
Pan-India, the recovery continued in H1 2021, as sales recorded over 75 per cent growth on a y-o-y basis. Pune led sales activity with an approximately 26 per cent share, followed by Mumbai with 19 per cent, closely followed by Hyderabad and Delhi-NCR with 18 per cent and 17 per cent shares, respectively.
CBRE South Asia, in its recent report, ‘Residential Real Estate in India – Challenges and Future-Proofing Strategies for Developers’, said, on the back of policies announced by the central and State governments, and the RBI, coupled with the incentives provided by the developers, the report cites that the residential segment has been showing green shoots of recovery.
While property prices have grown at a CAGR of 1-6 per cent across high-end segments and around 2–7 per cent across mid-segment since 2010, the per capita GDP grew at a CAGR of 4 per cent between 2010 and 2020. Further, the growth in GDP per capita for the top seven cities was above the national average. Hence, the income growth overtook the average rise in the price of properties, further contributing to housing affordability.
Moreover, the RBI gradually brought down the repo rate from 6.25 per cent in February 2019 to 4 per cent in May 2020, which has led to interest rates on home loans come down to 6.7-6.9 per cent.
Affordable housing has consistently been on the central government’s agenda ever since the policy on ‘Housing for All by 2022’ was announced in 2014. The reduction in GST on under-construction projects from eight per cent to one per cent in 2019, coupled with various incentives announced in the Budget 2021-22 has helped affordable housing become the major contributor to the sector’s growth.
Anshuman Magazine, chairman, India & South-East Asia, Middle East & Africa, CBRE, said, “The residential segment has played a major role in the real estate sector’s growth in India. With incentives such as the all-time low-interest rates on home loans, extension of moratorium period on loans, coupled with reduction in either circle rate or stamp duty across a number of States, residential has not only shown recovery but has become a great addition to asset portfolios.”
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