Hyderabad dominates new residential launches
Hyderabad: Hyderabad dominates new residential launches in 2021 among the top cities of India. The city tops the charts contributing 26.1 per cent of the launches in the country, followed by Pune with 17.6 per cent, Bengaluru with 16.4 per cent and Mumbai with 16.1 per cent.
Hyderabad saw the launch of 36,367 units in 2021, while Pune witnessed 24,572 units, Bengaluru saw 22,838 units and Mumbai saw 22,442 units. Pan-India new launches in 2021 stood at 1,39,256 units. Hyderabad continued its growth momentum in 2021 what the city witnessed in 2020, when it saw the maximum launches among the top seven cities of India, despite Covid times.
In the fourth quarter of 2021 (October-December), Hyderabad saw launch of 7,651 units out of total pan-India launches that stood at 45,383 units, accounting for 17 per cent, according to JLL research.
In 2020, Hyderabad recorded a launch of 23,692 units, followed by Bengaluru with 23,120 units, Mumbai with 19,502 units and Pune with 12,644 units. Pan-India new launches stood at 94,793 units. Bengaluru is the only city that saw de-growth in 2021 compared to the launches in 2020, while the remaining six cities of India, including Hyderabad, grew year-on-year.
Improving market sentiment on the back of a recovery in the economy has instilled confidence amongst developers as they strategically launched projects across cities to tap into the demand recovery underway.
Residential sector has witnessed green shoots of recovery and is expected to gain further momentum in 2022 if the third wave is contained. The reduction in home loan rates to a decadal low, coupled with incentives and discounts by the developers, and improved buyer confidence augur well for the residential sector, according to Dr Samantak Das, chief economist, and head- Research & REIS, India, JLL.
Not only new launches, but Hyderabad also maintained its growth momentum even in residential sales. The city’s residential sales jumped to 15,787 units in 2021 from 9,926 units in 2020, showing sharp recovery year-on-year.
In the fourth quarter of 2021, Hyderabad showed growth not only on a year-on-year basis but also sequentially in terms of residential sales. The city recorded sales of 4,503 units in Q4 2021 while the sales stood at 3,570 units in Q4 2020, and at 4,418 units in Q3 2021.
“Interest rates on housing loans are at an all-time low, thus creating affordable synergies in the market. This is the best time to buy one’s own house and thus benefit from not just lower interest rates but better affordability as well,” added Siva Krishnan, head, Residential, India, JLL.
JLL projects that the increased demand momentum, limited inventory in select segments, and rising input costs are expected to result in a price increase of 5-7 per cent in select residential micro-markets over the next year. The price increase will be limited to select micro-markets. However, the residential price at an overall level will remain mostly stable despite the input cost increase as developers will focus on sales and the completion of ongoing projects.
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