HYDERABAD BOUNCING BACK

The Hyderabad housing market is unstoppable, within consistently rising launches and sales momentum post-COVID-19. According to ANAROCK's recent report Riding the Rebound: Hyderabad Real Estate, housing sales in Hyderabad increased almost three-fold in 2021 over the preceding year. While the city remains the most affordable residential market among the top seven cities at approx Rs 4,450 per sq ft, it has ample scope for future growth. In fact, affordable residential and commercial property rates are a prime factor driving real estate activity in the city.

Prashant Thakur, Sr Director & Head, ANAROCK Research, says, “Thanks to its property market's multi-faceted accelerators, Hyderabad now draws interest from all stakeholders including investors, homebuyers, and developers. Its high-performing socio-economic dynamics, well-developed infrastructure, relatively affordable prices - and, not least of all, the slowdown on Amaravati's real estate market - all work in its favour. Amaravati's loss has been Hyderabad's gain over the past 4-5 quarters.”

Notable data trends

As per the ANAROCK report, Hyderabad saw approx 25,400 housing units sold in 2021, a 197 per cent Y-o-Y growth over 2020. Lower home loan rates, discounts by developers, and the growing post-pandemic inclination for homeownership helped boost sales.

In Q1 2022, the city saw approx 13,140 units sold, registering the highest sales growth of 199 per cent among all top seven cities over the corresponding period in 2021. Robust sales in the last one year trimmed housing inventory overhang from 53 months in Q1 2021 to approx 27 months in Q1 2022 - a massive 26-months decline. Hyderabad housing prices saw the biggest annual rise of 5 per cent in average property prices among the top seven cities - from Rs 4,240 per sq ft in Q1 2021 to approx Rs 4,450 per sq ft in Q1 2022.

In terms of new residential supply, Hyderabad saw an all-time high of new launches in 2021 - 234 per cent higher than the average historical yearly supply.

In Q1 2022, Hyderabad was second only to MMR in new launches, accounting for a 24 per cent share among the top seven cities. Q1 2022 saw 21,500 new units launched - a 41 per cent growth over Q4 2021, and 71 per cent rise over Q1 2021.

West Hyderabad was the major new launches contributor in Q1 2022, accounting for 60 per cent of the city's new supply. North Hyderabad came second, contributing approx 32 per cent of the city's new launches. East and South Hyderabad together accounted for a mere 5 per cent of new residential units launched.

More than half of the new launches (approx 51 per cent) were in the high-end segment priced between Rs 80 lakh to Rs 1.5 crore, followed by 29 per cent in the mid-segment (Rs 40 lakh-Rs 80 lakh), and 11 per cent in the luxury housing segment (Rs 1.5 crore-Rs 2.5 crore). The affordable housing (<Rs 40 lakh) and ultra-luxury segment (>Rs 2.5 crore) together accounted for less than 10 per cent of Hyderabad's new launches in Q1 2022.

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