Hyderabad residential sales rebound
Hyderabad: Though the Covid-19-led pandemic did disrupt lives and livelihoods, some sectors have bounced back. Real estate, which took a beating in the first year of the pandemic is now witnessing green shoots in Hyderabad with the residential market growing year on year. Many reports point towards a jump in the Hyderabad residential market with […]
Hyderabad: Though the Covid-19-led pandemic did disrupt lives and livelihoods, some sectors have bounced back. Real estate, which took a beating in the first year of the pandemic is now witnessing green shoots in Hyderabad with the residential market growing year on year.
Many reports point towards a jump in the Hyderabad residential market with many new developers venturing into this segment. From high-rise buildings and villas in the Western corridor to 2BHK and 3BHK apartments in other parts of the city, the residential space has seen many new properties being launched and more in the pipeline.
Urban Living Space MD and founder Naveen Mypala said, “The city has featured in the “best cities to live” in the past few years and has managed to secure top scores in the parameters of cleanliness and low pollution level. The infrastructure development and road connectivity have reached a new level with the linking of junctions of ORR, which is directly connected to various residential areas. Also, the presence of MNCs has opened new job opportunities. These factors have led to an increase in the demand for living space which has further raised the residential market growth of the city.”
Mypala also mentioned that Hyderabad’s residential sales have grown by 76 per cent in the past couple of years and there is a renewed interest from NRIs which is leading to high residential property prices. Not just non-resident Indians (NRIs), many retired professionals are setting up their abode in Hyderabad thus impacting sales.
Knight Frank chairman and MD Shishir Baijal said, “For the past several years, Hyderabad had one of the strongest price momentums which in turn depict demand strength. This was also visible through most of the lockdown when the market registered a significantly higher number of properties. Latent demand for properties as well as other factors like security in employment, growth in household incomes and savings and home loan rates continues to remain attractive for end-users to continue their home purchases.”
A report by Knight Frank also mentioned that even though prices are rising, the majority of sales – almost 55 per cent – are happening in the Rs 25 lakh to Rs 50 lakh price band. The demand for less than Rs 25 lakh price band residences has weakened with its share constituting 20 per cent as sales registration in this category reduced to 1,119 units in March 2022 as against 3,473 units in the same period last year.
“The trend of homebuyers looking to upgrade and move into larger living quarters, sparked by the pandemic, continued to hold strong in March 2022 as well,” it said. The share of sales in unit sizes over 1,000 sq ft maintained its share at 81 per cent of all home sales registrations in March 2022. Of these, homes in the size of 1,000 – 2,000 sq ft consist of 73 per cent of all sales registered during the period.
“Aside from sky-rocketing construction material costs, prices growth in Hyderabad is also being fueled by an improvement in demand for large, luxury homes,” says Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com & Makaan.com.
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