Hyderabad occupies larger pie in residential market
Hyderabad: Hyderabad has emerged as the real estate developers’ favourite market adding 22 per cent of the total (50,000 units plus) new residential launches in the top six cities of the country in the fourth quarter of 2021 (October-December). Cities such as Pune and Bengaluru accounted for 17 per cent and 12 per cent, respectively. […]
Hyderabad: Hyderabad has emerged as the real estate developers’ favourite market adding 22 per cent of the total (50,000 units plus) new residential launches in the top six cities of the country in the fourth quarter of 2021 (October-December). Cities such as Pune and Bengaluru accounted for 17 per cent and 12 per cent, respectively.
The quarter registered a positive momentum with a quarter-on-quarter rise of eight per cent in the number of new residential launches in Hyderabad. West Hyderabad dominated with 57 per cent of the total new launches, according to Square Yards research.
The yearly analysis of the new project launches reveals gradual emergence of West Hyderabad as a preferred zone for new real estate development overtaking North Hyderabad. The peripheral zone (West Hyderabad) in the first quarter of 2021 accounted for only one-fifth of the total new launches.
Due to the pandemic, developers felt it would be prudent to expand their residential offerings to the peripheries of the city. This thought process could have germinated from the sentiment of “affordable yet spacious homes” gaining prominence and becoming a mainstream selling point.
Demand vs supply
Hyderabad as a city has been more searched for residential properties online accounting for 18 per cent of total searches among key cities, ahead of 17% searches for Bengaluru properties, 11 per cent for Pune, and about nine per cent each for Gurugram and Noida.
In accordance with the buyer demand in Hyderabad, the inventory was tilted towards 2-3 BHK configurations with 61 per cent of the supply for 2BHK units and 30 per cent of the supply for 3 BHK units, a slight increase from the previous quarter. Like other top cities, demand for spacious homes in Hyderabad was also largely concentrated in peripheral locations such as Tellapur and Bachupally in the west and Attapur in the South.
Looking at the online search trends for the October-December 2021 quarter, close to 75 per cent of the residential listings in the city was for affordable properties priced below Rs 60 lakhs, Square Yards shows.
Most home buyers looked for properties in the middle-income segment and a healthy 25 per cent of searches was also noted for the Rs 1-3 crore ticket size. This could be attributed to the fact that independent homes are gaining a lot more traction over apartment projects in the city. There is also a rise in plotted developments in 2021 in the Hyderabad residential market.
Shift in trends
Anuj Puri, chairman, Anarock Group, said, “Covid-19 has not merely caused a tectonic shift in homebuyer preferences. It has reshaped the Indian residential real estate sector in just two years to an extent not witnessed in several decades.”
Homeownership is again at the top of priority list, and housing demand has shifted from compact homes in central business district (CBD) and secondary business district (SBD) areas to larger homes in the periphery. Also, the work from home or hybrid work culture has emerged as a much more resilient phenomenon than previously anticipated.
A recent Anarock survey shows 66 per cent respondents in Hyderabad prefer apartments, 19 per cent prefer villas and 15 per cent prefer to invest in plots.
“Housing has never been associated with change of such speed and magnitude. In many ways, the pandemic’s second wave was even more decisive for Indian real estate than the devastating first wave. The nationwide vaccination drive gained momentum in the second half of 2021, coinciding with another significant development- the real estate industry’s full and final acceptance of the new realities now governing the market,” Puri noted.
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