Hyderabad records 95% jump in Q1 housing launches
City witnesses lowest inventory overhang of 25 months across top eight cities of India
Hyderabad: Hyderabad saw a jump of 95 per cent in new housing launches to 7,604 units in the first quarter of 2021. It was observed that the majority of new supply was concentrated in Nallagandla and Kompally.
New supply in Hyderabad which accounted for 11 per cent of national supply in the first quarter of 2020 has seen an increase to 14 per cent of national stock in the Q1 2021.
Nearly 49 per cent of the new supply was in the Rs 75 lakh plus price bracket in Q1 of 2021. Units priced between Rs 45 and 75 lakh had a share of 40 per cent in overall launches. The share of units with 2BHK configuration has increased to 48 per cent in Q1 2021 from 28 per cent in the same period in the previous year.
Hyderabad also reported the maximum increase of 39 per cent year-on-year housing sales during January-March period of 2021 as end-user demand surged despite the Covid-19 pandemic. Sales contribution of Hyderabad went up from eight per cent in Q1 2020 to 12 per cent in Q1 2021.
According to PropTiger.com research, housing sales increased by 39 per cent to 7,721 units in January-March this year from 5,554 homes sold in the same period of 2020. The rise in demand was mostly driven by prominent localities of west Hyderabad such as Sangareddy, Bachupally and Kompally.
In value terms, builders sold properties worth Rs 8,400 crore during Q1 2021, up by 34 per cent from the same period last year. The pro-business State government policies, such as the TS-iPASS and the ICT Policy, have provided ease of doing business, the effect of which has trickled down to the real estate market, PropTiger.com said.
Mani Rangarajan, Group COO of Housing.com, Makaan.com and PropTiger.com, told Telangana Today, “With the consistent growth in office supply, residential demand and supply remained positive in the city. With the State government’s push, projects are coming across the city be it in north, east or around ORR. In addition to the west, there is an uptick in demand in Shamshabad, Uppal, Habsiguda, Saroor Nagar, Hayat Nagar and many other locations.”
Due to the sharp rise in new supply, the unsold housing stock in the city rose 26 per cent year-on-year to 39,191 units. Considering the current sales velocity, the rise in the number of unsold housing units is not a concern.
Among the eight major cities in the country, Hyderabad has the lowest inventory overhang of 25 months, and it would take little more than two years for builders to sell these unsold units.
The inventory overhang for all the eight cities is around four years on average and ranges approximately between three to five years for all cities other than Hyderabad. NCR has an overhang of 68 months of inventory while Mumbai has 62 months of overhang. Bengaluru has 37 months of inventory overhang.
Research shows that apartments costing more than Rs 75 lakh contributed to 54 per cent of the total sales during Q1 of 2021. The units ranging between Rs 45 and 75 lakh accounted for 31 per cent of the total sales.
In line with the national trend of growing preference for larger and quality homes from trusted developers, Hyderabad customers opted for 3BHK configuration, which contributed 48 per cent to the total sales, followed by 2-BHK with 44 per cent.
The primary residential market of Hyderabad performed well during the first quarter of 2021 calendar year and has surpassed the pre-Covid sales numbers. “Although it is too early to assess the adverse impact of the second wave, it has definitely put a brake on the revival of housing demand,” Rangarajan said, adding that the real estate industry is more prepared this time to handle the situation.
Housing prices appreciated by 5 per cent year-on-year during January-March 2021, driven by end-user demand in key locations. The weighted average price in the city is Rs 5,713 per square foot. Land prices have also gone up in the last few years in several micro-markets. There is an emergence of plotted developments in Shamshabad and Adibatla.
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