Housing sales may grow 3-fold in Hyderabad over 2 years
New launches in the city likely to remain constant at around 20,000 a year
Hyderabad: Despite the impact of the Covid-19 pandemic, the demand for housing units has been growing steadily in the city. As people get vaccinated and they restart work from office or hybrid work schedules, the residential market is likely to gain further momentum. Overall, real estate growth in the city during the first half of 2021 has been well above the national average considering all assetclasses.
As per property consultant JLL's City Momentum Index, Hyderabad has been assessed as the world's most dynamic city from amongst 130 cities across the globe in 2020. The city has been assessed based on the socio-economic parameters like connectivity and GDP growth.
According to Knight Frank India, new home sales in the city witnessed a significant 150 per cent growth during January- June (H1) 2021.
The real estate market in the city has a very low inventory levels, trigging a large number of new project launches this year, indicating a lot of vibrancy in demand. A recent report by another property consultant Anarock revealed that the city has witnessed sales of 7,641 housing units and 21,461 new launches in H1 2021. Hyderabad residential market may further see unprecedented rise in housing sales and new launches in coming years.
Anarock's report predicted housing sales in the city to surge at 19,847 units and 23,816 units respectively over the next two years, while new launches are anticipated to grow at 17,091 units and 20,969 units respectively in a couple of years.
VRajashekar Reddy, General Secretary of the Confederation of Real Estate Developers' Associations of India (Credai) Hyderabad, said: "Due to the work from home trend influenced by the pandemic, residential market in the city has recorded abundant growth in terms of demand aswell as supply in H1 2021 as compared to H1 2020."
"In terms of ticket-size, demand grew across all categories of homes, especially in the Rs 25-50lakh category with a 240 per cent increase and the Rs 1-2 crore category with a 158 per cent increase in H1 2021.
Average housing prices have been steadily increasing from Rs 4,000 per sq ft in 2018 to Rs 4,750 per sq ft in 2020," he informed.
On account of the pandemic- induced work from home trend, demand for larger homes has picked-up substantially in the city residential market over the past few months. As a result, the share of the Rs 1-2 crore ticket-size category in the total units launched grew from 18 per cent or 1,544 units in H2 2020 to 27 per cent or 4,444 units inH1 2021.