Hyderabad: After a slowdown in April, the residential market of Hyderabad saw a modest improvement in the ensuing months of Q1 (May and June) 2020-21. Localities, such as Narsingi, Kokapet, Gachibowli, Patancheru and Bachupally, bordering the IT corridors accounted for about 70 per cent of the property enquiries and transactions.
Bigger residential formats including 3 BHK units priced within Rs 50-70 lakh budget and independent houses pegged at Rs 80 lakh to Rs 1 crore remained the focus segments, according to 99acres.com.
Nizampet in the West also witnessed traction from the homebuyer community. Proximity to the Outer Ring Road (ORR) and budget-friendly residential stock tagged at around Rs 3,800 per sq ft drove the market demand. Kondapur and Nagole saw around three per cent growth in the capital prices, quarter-on-quarter. Proximity to HITEC City boosted the average prices in Kondapur. Nagole in the East gained popularity due to the availability of low-cost units and metro connectivity via Blue Line. Gachibowli, Kondapur, Manikonda and Kukatpally hold the maximum unsold stock.
Average rentals in Hyderabad increased marginally by one per cent, year-on-year. HITEC City, Attapur and Banjara Hills remained popular among tenants and recorded a 5-6 per cent hike in their average yearly rents. Though proximity to Gachibowli fueled demand in Attapur, the premium locales of Banjara Hills and HITEC City were preferred owing to their commercial significance and the presence of IT/ITeS firms.
Significant price growth
Despite the stress caused by the coronavirus pandemic on housing sales and new supply, property prices have continued to move upwards in Hyderabad during the April-June period of 2020, according to PropTiger. During the period, builders sold 1,099 homes. Given higher prices over the last couple of years, more than 80 per cent of the new launches were priced at over Rs 1 crore with 2BHK/3BHK accounting for over 90 per cent of the new supply.
“Unlike most other housing markets, price growth in Hyderabad has been significant in the past few years. Demand decline is largely temporary and is due to the economic uncertainty but will revive over the next few quarters. In fact, Hyderabad’s commercial market has performed well over the last couple of years and residential demand tends to lag commercial supply absorption. While we will see new launches this year, volumes may not be comparable to prior years. Prices may continue to expand albeit not at the same pace as over the last few years,” says Mani Rangarajan, Group COO, Housing.com, Makaan.com & PropTiger.com.
Unlike most other markets where price growth has remained stagnant, Hyderabad residential prices increased seven per cent over the last year with weighted average prices at Rs 5,505 per sq ft.
Lowest unsold stock
India’s pharmaceutical capital and an IT stronghold currently has the lowest level of unsold inventory across the eight prime residential markets at 32,068 units or 19 months overhang. Unsold inventory declined by 20 per cent and represented just four per cent of the 7,38,336 unsold units across India’s eight prime residential markets.
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