- Amid the economic meltdown and construction-linked challenges, housing sales in Hyderabad took a massive hit in Apr-Jun 2020. The quarterly traction dipped by around 70 percent with barely 750 units being sold during the period.
- Ambiguity around the market revival refrained builders from announcing new projects. Mere six new projects were added in North and West Hyderabad.
- Increased focus of homebuyers on the affordable pockets bordering the IT corridor improved the residential enquiries in Patancheru, Nizampet, Kondapur and Nagole.
- Average capital prices in Hyderabad remained stable, QoQ, while annual rents grew by one percent, YoY. HITEC City and Banjara Hills remained popular among the tenant community.
- Office absorption remained muted, barring a few transactions in Nanakramguda and Gachibowli. Many companies ramped down their operations and shifted to compact spaces.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The residential market of Hyderabad struggled due to declining sales in Apr-Jun 2020. Limited availability of labour, economic meltdown and subdued enquiries suppressed the homebuying trend in the city. With a 70 percent decline in the quarterly traction, mere 750 units were sold during the review period. Enquiries, too, stood at a 60 percent low from the pre-COVID period. Resultantly, the average ‘asks’ in Hyderabad maintained status quo, QoQ.
Slow-paced revival in the residential market significantly affected the inventory addition in the city. Merely six new projects were added in North and West Hyderabad as the majority of the reputed developers, including Ramky, Aparna, Vasavi, and Cybercity, among others, deferred their expansion plans by 3-6 months.
While the construction activity might take another two quarters to get back on track, developers anticipate a sharp V or U-curve recovery with respect to sales. A host of flexible payment options, such 100 percent refund up to one year from the booking date, no penalty on construction-linked payments delayed by 6-12 months and no pre-EMI offers until possession, might renew homebuyer’s interest. Besides, many Grade A builders undertaking construction activities in dual shifts to boost the supply of ready homes may also drive the market demand.
Price movement in key micro-markets
|Localities||Apr-Jun 2020||QoQ % Change||YoY % Change||Rental Yield|
|Manikonda||Rs 4,200 - 5,040||3%||5%||4%|
|Nizampet||Rs 3,350 - 4,030||4%||3%||4%|
|Chandanagar||Rs 3,890 - 4,470||0%||-6%||3%|
|Miyapur||Rs 3,580 - 4,600||-4%||-6%||3%|
|Kukatpally||Rs 4,430 - 5,840||1%||-2%||3%|
|Kondapur||Rs 5,480 - 6,630||3%||5%||0%|
|Gachibowli||Rs 6,480 - 7,540||1%||5%||3%|
|Attapur||Rs 3,700 - 4,590||2%||3%||3%|
|HITEC City||Rs 6,750 - 8,410||1%||5%||3%|
|Banjara Hills||Rs 6,240 - 8,920||3%||10%||3%|
* Average 'ask' rates have been calculated as per listings posted on 99acres.com
** Rental Yield has been calculated for a 1000 Sq. Ft. apartment