Hyderabad sees bullish housing market despite rising home loan rates

Despite economic challenges and rising home loan rates, the city has defied odds and experienced a surge in housing sales.

Hyderabad: Hyderabad continues to shine bright in the realm of real estate. Despite economic challenges and rising home loan rates, the city has defied odds and experienced a surge in housing sales, winning the hearts of homebuyers far and wide.

According to the latest data from Anarock Research, during the second quarter of 2023, approximately 1,15,100 units were sold across the top seven cities in India.

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This represents a phenomenal 36 per cent increase compared to the same period in the previous year. Among these cities, Hyderabad boasts a considerable 21 per cent spike in sales, with approximately 13,570 units finding new owners during Q2 2023.

But the success story doesn’t end there. Hyderabad also witnessed a surge in new property launches, with around 10,470 units joining the market during the same period. While this may indicate a yearly decline of 51 per cent compared to the previous year, it’s important to note that a substantial 43 per cent of the new supply caters to the high-ticket price segment, with properties priced over Rs 1.5 crore.

This surge in luxury housing options is not a fleeting phenomenon in the city but a growing preference that has gained momentum in recent years, particularly following the onset of the Covid-19 pandemic. Buyers are increasingly drawn to the allure of luxury houses, seeking the perfect blend of elegance, comfort, and exclusivity.

The report further states that Mumbai Metropolitan Region (MMR) and Pune took the lead in overall sales, accounting for over half of the total transactions.

The Anarock Group’s Chairman, Anuj Puri, commends the housing market’s tenacity, highlighting that it remains steadfast even in the face of challenges such as home loan rate hikes and global economic headwinds. “The market continues to be on a roll with the momentum remaining strong even in the second quarter of 2023. Housing sales in the top seven cities broke the previous high record of Q1 2023 and stood more than 1.15 lakh units in Q2 2023,” he said.

The success story of Hyderabad’s real estate market is a testament to its growing appeal among homebuyers. With an average annual increase in residential property prices of 10 per cent, reaching Rs 4,980 per sq. ft. in Q2 2023, Hyderabad’s real estate sector demonstrates both resilience and untapped potential.

Housing sales in top 7 cities (In units)

CITY                                     Q2 -2023                          Q2 -2022

Hyderabad:                         13,570                                11,190

NCR:                                     16,450                               15,340

Bengaluru:                          15,050                                11,510

MMR:                                   38,090                              25,790

Pune:                                    20,680                              12,500

Chennai:                              5,490                                 3,810

Kolkata:                               5,780                                 4,800