Hyderabad: The city’s residential market has seen a growth of 171% compared to other top 7 cities. Among all sectors, real estate is one sector that serves as a key indicator of confidence of a large section of the population in the city. Not just the family, a large part of which is middle class (…)
Published date – 15 July 2022, 11:45 pm
Hyderabad: The city’s residential market has seen a growth of 171% compared to other top 7 cities
Among all sectors, real estate is the sector that serves as a key indicator of confidence of a large section of the population in a city. Not just families, a large section of whom belong to the middle class, who invest their hard-earned money to build a nest egg for themselves, the business of property acquisition also naturally reflects the confidence of investors, builders, bankers, raw Does. Suppliers and many other supporting segments are deployed in the given city.
And, staying ahead of other Indian real estate locations, Hyderabad is continuously strengthening its position on the property radar. Now driven by strong policy-making and the unwavering support of the state government for its development, Hyderabad can neither be affected by the global economic scenario, as it was during the 2008 recession, nor by the COVID-19 pandemic. Could have done. Really harmed the city’s position in realty ratings.
The pandemic may have slowed down Hyderabad’s progress a bit due to its lockdown, but failed to hamper the work, as had happened with many other metro centers in the past not only in the country but in most developed countries around the world. Two years. Hyderabad real estate emerged from the pandemic with renewed vigor and the construction activity in new and emerging locations is testament to this.
Even a recently released report by JLL, a leading professional services firm specializing in real estate and investment management, said, ‘Hyderabad recorded strong residential sales, the highest since the second quarter of 2008. Quarterly sales observed.
The JLL report underlined that new launches increased by 24 per cent QoQ in Q2 2022 as several leading developers expanded their footprint in the western suburbs.
Sandeep Patnaik, managing director, Telangana and Andhra Pradesh, JLL, points out that maximum sales in Hyderabad were generated in the western suburban submarkets in Telapur, Nallagandla and Kondapur.
“One of the relevant trends worth noting is that most of the sales were recorded in residential apartment units priced between Rs 1 crore and Rs 1.5 crore. In H1 2022, Hyderabad witnessed a sales growth of 39 per cent compared to H1 2021, as 9549 residential apartment units were sold during the period,” he says. Additionally, Hyderabad witnessed the highest quarterly sales since Q2 2008.
The fact is that there is high interest in the residential segment, it is reported that the residential market recorded sales of over 53,000 units in the second quarter, a growth of 171 percent year-on-year compared to the second quarter of 2021 . Top seven cities.
The JLL report describes the trend as: ‘This reflects rising demand due to pandemic containment and the return of buyer confidence in the market.’
During the quarter, on a sequential basis, Hyderabad witnessed the highest growth of 38 per cent among all major centres. Additionally, if the year-on-year figures are compared, Q2 2022 saw a 75 percent increase in sales, with units sold increasing from 3,157 in Q2 2021 to 5,537 in Q2 2022!
Additionally, 6,013 residential units were sold in the plots and villas category during Q2 2022 across the top seven cities. Of these, Hyderabad contributed 28 per cent of quarterly sales where 1700 residential units were sold in this category.
Prices are moving north:
Meanwhile, rising input costs and strong demand have led to a rise in residential prices, with capital values witnessing 3 per cent to 7 per cent year-on-year growth in all cities except Hyderabad, which has shown resilience by registering double-digit price growth. Has shown. Duration.
Dr Samantak Das, Chief Economist and Head of Research & REIS, India, JLL, says, “Developers have partly borne the burden of the increase in input costs which is now reflected in the prevailing residential prices. New launches also hit the market at higher prices. “With interest rates rising, the cost of buying a home is likely to increase further.”
Employment opportunities created in the IT sector and start-ups are driving the residential market in Hyderabad, says Dr. Das Investments in the city’s infrastructure through SRDP have opened up new residential clusters in the northern and eastern parts of the city Which are contributing to the increase in residential sales.