Hyderabad: Despite the spiralling Covid-19 pressures across the country, Hyderabad housing sector made a decisive comeback in Q3 2020 with new housing supply increasing by 45 per cent compared to the pre-Covid-19 levels (Q1 2020), higher than any other city in the country. The city saw an addition of approximately 4,900 units in the third quarter of 2020 (July-September). About 88 per cent new supply was added in the sub Rs 80 lakh price bracket, according to Anuj Puri, chairman, Anarock Property Consultants.
Industry sources believe Hyderabad’s formal economy has been one of the most resilient in urban India and resumed its stability after the lockdown rules were relaxed as was one of the first cities to restart its economic activities.
While Hyderabad led the housing supply growth in the third quarter with 45 per cent jump, Kolkata and NCR saw their new supply increase by 24 per cent and 10 per cent respectively, during the period, he observed.
New launches across the top seven cities of India stood at 32,530 units in the third quarter against 41,220 units in Q1 2020, reaching over 79 per cent of the pre-Covid-19 quarter levels. Pan-India, affordable and mid segments (priced up to Rs 80 Lakh) comprise 72 per cent share of total new supply in July-September period (approximately 23,290 units).
Not only the new housing supply was impacted across the country in the third quarter, but also sales. The top seven cities witnessed housing sales of about 29,520 units in Q3 2020 as against 45,200 units, rebounding back to 65 per cent of pre-Covid-19 quarter of Q1 2020. However, Sales were significantly higher than the preceding quarter, Q2 2020, when the coronavirus pandemic had brought sales down to just 12,730 units.
Anarock research data shows Hyderabad saw 1,650 units sold in Q3 2020 as compared to 2,680 units in Q1 2020 with sales back at 62 per cent of pre-Covid levels.
Latest studies also show that low unsold inventory in the city coupled with improving sales over the second quarter of 2020 allowed top developers to hold base prices of the residential units intact. While home buyers have started physical site visits, several developers are exploring new technology options to ease out the home buying process in Hyderabad.
Unsold inventory in the country’s top cities shrunk by approximately 3 per cent on a yearly basis–from 6.56 lakh units in Q3 2019 to 6.36 lakh units in Q3 2020. It reduced by one per cent between Q1 2020 with 6.44 lakh units and Q3 2020, indicates Anarock research.
Puri adds, going forward, dispersed offices and flexible workplace policies around work from home will spur housing demand on city peripheries, beyond the city-centre hotspots. This will lead to higher demand for large township developments. West Hyderabad is a promising area for future development, as it is well-connected and has enough contiguous land parcels to accommodate integrated townships.
Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.