Hyderabad: The western corridor areas ranging from Kukatpally to Kondapur and Manikonda to Gachibowli remain the growth engine for Hyderabad’s real estate. Even though many IT offices haven’t been fully opened for employees, the demand for real estate in that region continues to remain strong. The western suburbs such as Hitec City, Financial District and surrounding areas continue to dominate the new launches space.
As per a report by 99acres.com, the first half of 2021 saw a 250 per cent jump in new launches in the western corridor even though overall new launches remained muted in the July-September quarter of 2021. The report also mentioned that 2BHK and 3BHK units measuring 1,100-1,300 sq ft and 1,500-2,500 sq ft respectively had the highest market share. And areas such as Kondapur, Gachibowli, Manikonda, Kukatpally and Madhapur saw an average of 35-50 per cent market share for 2BHK and 3BHK units.
“The mid and the high-income budget segments witnessed the launch of a number of projects in July-September 2021. Healthy demand from potential buyers helped lift sales that initially witnessed a dip amid resurgence of Covid-19 cases in April 2021,” the report mentioned. Being the epicentre of business activity, the western corridor continued to dominate the market in terms of residential demand.
Given the optimism in the market and the expectations of a V-shaped recovery, property prices in the city are gradually inching up after being stable for a long period of time. Due to the increase in land prices, the demand for budget homes has increased in the fringes of the city, particularly for houses in the price range of Rs 60 lakh to 80 lakh.
While the capital market seems to be on the road to recovery, the rental housing market is still at a tipping point as more than 55 per cent of the companies have deferred their re-opening schedules and plan to increase their work-from-home percentages to over 70 per cent by December, 2021. While the full-fledged recovery of rental housing might take some time, areas in the western corridor, especially the extension of the IT belt have remained popular among tenants.
Buying luxury homes, including villas, is gradually becoming a trend in the city. Led by consistent demand, the city recorded an increase in the value per square feet rate of this property type, especially the newly constructed ones.
Areas such as Nanakramguda, Kokapet, Narsingi, and Kondapur in the western quadrant ruled the roost in terms of buyer enquiries, new launches, and residential sales. Latent demand for real estate facilitated the consumption of existing inventory, which was recorded at around 12,000 units in first half of 2021, the report informed. The extended work-from-home and online schooling trends created the need for more space, and therefore, the demand for larger homes has gained momentum in Hyderabad.
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