Hyderabad: Hyderabad dominated new launches accounting 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.
With new launches concentrated in the Kondapur, Hafeezpet and Manikonda regions, 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.
“Low inventory levels, especially in ready to move in projects have provided developers with the lever to maintain prices. With sales expected to improve further on return to normalcy, capital values have remained stable across all the submarkets in the city,” said Sandip Patnaik, MD–Hyderabad, JLL India.
“Sales traction was witnessed more in ready to move in projects or projects likely to complete in the next 2-3 quarters. In the subsequent quarters, the translation of demand into sales will primarily hinge on enhanced consumer confidence, which in turn depends upon the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large,” he added.
Pan India, new launches were restricted with 12,654 units launched in the third quarter, a decline of 14 per cent quarter-on-quarter. Developers focused on completion of under construction projects and clearing their existing inventory.
India’s residential market was active in Q3 2020 with sales increasing by 34 per cent versus Q2 2020. Mumbai accounted for 29 per cent of the total sales in the quarter, while 22 per cent of sales was contributed by Delhi NCR. Growth in sales activity was also driven by stronger demand in Hyderabad, Chennai and Pune. Hyderabad witnessed sequential quarter sales growth of 76 per cent from 1,207 units in Q2 to 2,112 units in Q3.
JLL research pointed out that residential market activity is also being supported by renewed interest from NRIs in Q3 2020, resulting in more pent up demand in the market and increased enquiries received by developers.
Q3 2020 witnessed sales outpacing new launches as unsold inventory across the seven markets (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Pune and Kolkata) decreased marginally from 4,59,378 to 4,57,427 units.
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