Hyderabad realty sees big turnaround
Hyderabad: When Telangana was formed there was a lot of clamour around real estate and sceptics opined that the housing segment in Hyderabad would take a beating. However, the city over the years has seen a rebound in real estate. Whether it is new launches or housing sales, both have witnessed a big turnaround since […]
Hyderabad: When Telangana was formed there was a lot of clamour around real estate and sceptics opined that the housing segment in Hyderabad would take a beating.
However, the city over the years has seen a rebound in real estate. Whether it is new launches or housing sales, both have witnessed a big turnaround since 2014 and even the recent pandemic – which disrupted all sectors and especially real estate – did not deter this growth.
From homebuyers to investors to developers, the city of Nizams has seen a renewed interest from all stakeholders due to favourable socio-economics, well-developed infrastructure, relatively affordable prices and a business-friendly government. Research by Anarock points out that the slowdown in neighbouring Andhra Pradesh capital Amaravati’s real estate is being seen as a gain for Hyderabad.
Analysing data from 2013, the research says that nearly 1.80 lakh new housing units have been launched in the last nine years and currently 62,800 units are available in the primary market for sales that are in various stages of construction. As soon as Covid-19-led restrictions were eased, the city witnessed new launches of a large number of housing projects.
In 2020 and 2021 (as of Q4 2021), the city witnessed new launches of nearly 72,500 units which contributes 40 per cent to the overall housing supply (1.80 lakh units) of Hyderabad over the past 9 years.
Mid-segment, premium housing
With many IT companies having their base in Hyderabad, the residential demand is driven by techies mainly demanding houses in the budget segment ie, Rs 40 lakh to Rs 80 lakh. However, the need for larger spaces also pushed developers towards the premium segment. In the last two years, the city witnessed a big shift in the new projects with developers moving from the Rs 40 lakh to Rs 80 lakh category to Rs 80 lakh to Rs 1.5 crore category in the post-Covid period.
Changing preferences
In the last few years, homebuyers have heavily tilted towards ready-to-move-in homes or those nearing completion in order to reduce the construction execution risk.
However, with the recent policy reforms and structural changes, the market dynamics have changed, and the sector has become more homebuyer-friendly. The recent two quarters sales numbers also clearly indicate the revival of demand for new launches.
Prices rising
The average capital values in Hyderabad witnessed an increase of 23 per cent over the period Q1 2013 to Q4 2021. Post-2016, the structural changes in real estate policies, demonetisation and financial turmoil in NBFCs hit the market badly. The average housing prices declined in the fourth quarter of 2016 and remained range-bound till 2019.
In Hyderabad, the capital values further decreased 2% in the second quarter of 2020 and remained down till Q3 2020. However, the housing market saw a 4% increase in average prices in the last one year (from Q4 2020 to Q4 2021).
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