Hyderabad dominates in new residential launches
New supply more than doubles in the third quarter when compared to the previous quarter
Hyderabad: As housing markets across India gear up for recovery from coronavirus-caused economic gloom in the third quarter of 2020, Hyderabad real estate acted as the trendsetter for the residential market, numbers from various research studies show. The city dominated in terms of new residential launches during the quarter. Mani Rangarajan, Group COO, Housing.com, Makaan.com & PropTiger.com told Telangana Today, Hyderabad was the only city that saw new supply more than doubling up to 4,264 units when compared to the previous quarter during the three-month period. On a quarterly (108 per cent) as well as annual basis (4 per cent), new supply numbers showed an improvement.
The city has the lowest inventory overhang (25 months) among the eight markets. Barring Hyderabad, where average property rate now stands at Rs 5,593 sq ft after undergoing a six per cent increase in the past one year, value growth has been nearly flat in the neighboring markets of Bengaluru and Chennai. He added, “Hyderabad tops charts in the country in terms of livability today. Over the last few years, if you look at commercial supply and absorption, the growth has been multi-fold and the city has become one of the strongest markets in terms of commercial real estate performance. Demand outstrips supply in certain micro-markets. Going forward, we are bullish of the potential the city has.”
According to Anuj Puri, chairman, Anarock Property Consultants, Hyderabad witnessed housing sales worth Rs 3,116 crore in the first three quarters of 2020 (January-September). The overall units sold in the three quarters is approximately 4,980 units. “Hyderabad sales values went up by 152 per cent from Rs 410 crore in the second quarter to nearly Rs 1,032 crore in Q3 2020,” added Puri. Anarock expects a 20-24 per cent jump in housing sales in Q4 2020 against the preceding quarter.
Hyderabad dominated new launches in the country contributing for over 40 per cent of the overall launches across all top seven cities during Q3 2020, according to JLL Research. The city witnessed the highest number of new launches in Q3 in the country with 5,396 units compared to 5,034 units in Q2, registering a seven per cent growth. Top cities saw a launch of 12,654 units cumulatively.
With new launches concentrated in the Kondapur, Hafeezpet and Manikonda regions of Hyderabad, western suburbs continued to account for a majority share in new launches. Apart from western suburbs, L B Nagar and Kompally in the northern and eastern Suburbs submarkets witnessed an increase in launch activity.
Most new launches were in the 3 BHK configuration and development activity was concentrated in the Rs 75 lakh to Rs 1 crore price segment, which contributed 59 per cent of the total new launches during the quarter. On the sales front, Hyderabad witnessed sequential quarter sales growth of 76 per cent from 1,207 units in Q2 to 2,112 units in Q3, shows JLL research.
Positive trend
- Hyderabad is the only city that saw new supply double up in Q3 over Q2
- Accounted for 40 per cent of the new launches among top markets in Q3
- The city has the lowest inventory overhang among the top eight markets
- Western suburbs continued to account for a majority share in new launches
- Housing sales worth Rs 3,116 crore in the first three quarters of 2020
- Overall units sold in the first three quarters is approximately 4,980 units
- City to see 20-24 per cent jump in housing sales in Q4 2020 over Q3
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