Over the last few years, Hyderabad has experienced a significant increase in its residential real estate activity. Statistics show escalating capital values and increase in retail and office space absorption during 2014-18. Progressing with the same pace, the city is in its race to join the club of mega cities by 2030.
The city’s residential sales have witnessed a 182% increase with 5,476 units being sold as against 1,941 last year. However, the realty market across the other top six cities (NCR, MMR, Chennai, Bengaluru, Pune, and Kolkata) were relatively passive in Q3 2018.
From a Tier-II city, Hyderabad has emerged as one of India’s fastest growing real estate markets over the last few years. It is among the top seven cities with a major increase in realty sales. Around 52,150 new units were launched in Hyderabad in Q3 2018. It is a significant increase as compared to 50,600 units launched in Q2 2018. Other cities which majorly contributed to new unit additions in Q3 2018 include MMR (Mumbai), Pune, Bengaluru, and Chennai.
As per a recent survey, the new launches were mainly seen in the lower-budget segment (below Rs 40 lakh), accounting to nearly 42 per cent of the total new supply. The remaining launches in the mid segment and the luxury and ultra-luxury segments were 33% and 25% respectively.
More than 50% property seekers are looking forward to buy their property within the next one year. The festive season is expected to bring in cheer in the real estate sector this year.
Realty experts at Modi Builders highlight that Hyderabad has also witnessed a major decline in its unsold inventory since 2017. It has better scores than several other metros when it comes to unsold inventory pile-up situation.
Statistics show that Hyderabad’s total unsold inventory amounted to 35,560 units in Q2 2016. Declining by around 14 per cent in the corresponding quarter of the next year, the city’s unsold inventory further reduced by 13 per cent in Q2 2018 as against the same period in 2017. Within the last 2 years, the total unsold stock in Hyderabad declined by almost 29 per cent.
A number of factors, such as the availability of affordable property, infrastructure developments leading to enhanced social infrastructure have attracted realty investments in Hyderabad, say experts at Modi Builders. The launch of Metro Rail services has further bolstered the investment opportunities in Hyderabad.
The increasing realty growth in Hyderabad can also be attributed to two major factors: the buyers’ increasing confidence due to implementation of RERA and the steady capital values that have started to show an upward curve.