Hyderabad: Residential sector in Hyderabad continues to show positive growth despite the second wave of the pandemic. With the sale of 2,429 units during the second quarter of 2021 (April-June), demand has increased by 121 per cent annually.
Hyderabad is the only city in India to record annual, quarterly increase in launches, sales and annual price appreciation. According to the PropTiger research, the average annual value of properties in the city increased 5 per cent during the Q2. This now makes the Hyderabad market to have the highest average per square foot price for under-construction properties.
Mani Rangarajan, Group COO, PropTiger.com, told Telangana Today, “Hyderabad is one of the best commercial markets in the country on par with Bengaluru and has surpassed even the Delhi-NCR market. The IT and pharma sectors remain key drivers of economic growth of the city. New residential launches and sales are positive. Due to Hyderabad’s quality of living, the city is evolving as a top residential market and demand is set to grow consistently. It will remain a preferred market for investors.”
“While the impact of the second wave of the coronavirus pandemic remained largely the same on most markets, some markets showed lesser degrees of vulnerability. This has been reflected in the price growth and new launch numbers recorded in Hyderabad,” he added.
A total of 8,811 new units were launched in Hyderabad, which stood for a 16 per cent sequential rise in new launch numbers. An annual comparison shows new supply was four times of what was seen in the April-June period of 2020. Over 51 per cent of the new units launched in the year were recorded in the over Rs 75-lakh price bracket.
Even though the inventory overhang has increased by two months for the city to 27 months amid a 42 per cent annual increase in unsold housing stock, Hyderabad continues to have the lowest inventory overhang among India’s prime residential market. As on June 30, builders of the city had an unsold stock consisting of 45,573 units. The Mumbai Metropolitan Region and the National Capital Region markets have the highest inventory overhang of 64 months each.
Average price of residential property in Hyderabad is Rs 5,790 per sq ft, registering an annual growth of five per cent, highest appreciation seen by any city along with Ahmedabad across India.
He said, supply of new apartments in India’s eight prime residential markets witnessed a decline of 59 per cent when compared to the January-March period of this year, the report shows. A total of 21,839 new units were launched in these markets during Q2CY21. However, when compared to the same period last year, new launches show an increase of 74 per cent.
Housing sales in Q2 showed a decline on a sequential as well as year-on-year basis. With 15,968 transactions being recorded across these eight markets during the second quarter, home sales during the three-month period ending June 30 declined 16 per cent YoY while registering a 76 per cent QoQ fall, noted Rangarajan.
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