Hyderabad tops in housing launches
While overall India launches saw 46% decline in 2020, Hyderabad saw 42% jump year-on-year
Hyderabad: The impact of Covid-19 on the housing launches in India is glaring in 2020, yet Hyderabad refuses to give up. While the rest of the cities in the country have faced the brunt of the growing negative economic sentiment, Hyderabad has stood the test of time, shown resilience and emerged victorious. The numbers say it all.
The top seven cities of India cumulatively saw about 1,27,970 new housing units launched in the entire 2020, against 2,36,570 units in 2019, registering a massive decline by 46 per cent. In contrast, in Hyderabad, new launches increased by a whopping 42 per cent in 2020 compared to 2019.
Hyderabad is the only city among the top seven cities that registered growth in 2020, while the rest showed contraction. The close neighbour Bengaluru showed 46 per cent decline.
Anarock research shows new launches in Hyderabad stood at approximately 21,110 units in 2020, against 14,840 units last year. The city accounted for 16.5 per cent of India’s new housing launches during 2020. Interestingly, Hyderabad, Mumbai Metropolitan Region (MMR), Pune and Bengaluru together accounted for 76 per cent of new housing addition in the country.
Fourth quarter trend
In line with the annual trend, Hyderabad also outpaced other top six cities in the country in housing supply during the fourth quarter (Q4) of 2020 by adding 12,820 units, followed by the MMR with over 11,910 new units.
Approximately 52,820 units were launched in Q4 2020 across top seven cities of India (including Hyderabad) compared to 51,850 units last year, showing a marginal increase by two per cent. Hyderabad accounted for almost 25 per cent of the new housing launches nationwide during the period.
According to Anuj Puri, chairman, Anarock Property Consultants, “2020 has been an unprecedented year due to Covid-19, causing all-round upheaval.” While the rest of the country struggled throughout the year, Hyderabad maintained its growth trajectory consistently.
The city dominated new housing launches in India during the third quarter (Q3) of 2020, contributing to over 40 per cent of the launches across top seven cities, according to JLL research. The city witnessed the highest number of new launches in Q3 in the country with 5,396 units compared to 5,034 units in Q2, registering a seven per cent growth, in Covid times. This shows Hyderabad has maintained its growth momentum quarter-on-quarter in a volatile economic environment.
Showing signs of recovery towards the closing quarters, the top seven cities saw their unsold stock decline by two per cent in the year – from approximately 6,48,400 units in 2019-end to about 6,38,020 units as of 2020-end. Mid-segment new supply (priced Rs 40 lakh–Rs 80 lakh) rose 39 per cent in Q4 2020 against the same period in 2019, while affordable supply reduced 39 per cent.
Near-term outlook
JLL studies show that the southern markets will lead the recovery cycle with other markets on the heels, as cities gradually return to ‘business as usual’.
The future of the residential market and the sustenance of the recovery process in India will depend on the containment of the virus and how the new virus strains are going to be tackled. The year 2021 can pan out in two different ways. If the virus is contained in 2021 and economic activity resumes at full capacity, housing affordability is expected to improve across all the cities.
Broader recovery of the residential market and the likely pace of translation of demand into actual sales volumes will be largely dependent upon the economic environment and the prevailing consumer sentiments, say experts.
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