- The residential real estate market of Hyderabad witnessed a substantial decline of over 90 percent in the number of new launches in Apr-Jun 2021.
- Home enquiries dipped by nearly 30 percent, QoQ, and sales, too, declined by 80-90 percent in the reported quarter.
- Similar to the previous quarters, properties priced between Rs 50 lakh and Rs 75 lakh grabbed the maximum share of buyer enquiries in Apr-Jun 2021.
- With the decline in sales, unsold inventory levels went south by a marginal 10 percent, QoQ. Despite all odds, areas in the North and the West quadrants of the city remained popular among buyers and tenants alike.
- Property prices in most of the localities remained stable throughout the reported period.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The real estate market of Hyderabad that staged an impressive comeback in Jan-Mar 2021 witnessed a severe blow amid the resurgence of the COVID-19 pandemic, March 2021 onwards. Led by the rising number of COVID-19 cases across the State and imposition of lockdown restrictions, new launches took a substantial hit and reported a decline of over 90 percent, QoQ. While the enquiries dipped by around 30 percent, QoQ; sales went south by 80-90 percent.
Affordable and mid-segment housing, i.e. properties priced between Rs 50 lakh and Rs 75 lakh accounted for over 70 percent share of the total buyer enquiries in Apr-Jun 2021. Similar to the preceding quarter, West Hyderabad, especially areas such as Kokapet, Narsingi and Financial District, remained home buyers’ favourites. Along with prominent locations in the western suburbs, Kompally and Bachupally in the North also emerged as popular destinations amongst buyers owing to improving infrastructure and connectivity to the established IT hubs of the city. In terms of configuration, 2 BHK units, measuring between 1,000 and 1,200 sq ft remained popular in Apr-Jun 2021.
With sales velocity taking another hit, unsold inventory, which was recorded at 29,000 units at the end of March 2021,
declined by a marginal 10 percent, QoQ. The majority of this inventory is either 3 BHK or bigger formats of 2,000 sq ft and above. Hyderabad East and North account for heavy unsold housing stock.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Chandanagar||3,200-4,100||13||3.54%|
|Rs 40 lakh - Rs 1 crore||Miyapur||3,500-4,500||11||3.10%|
|Rs 1 crore and above||Gachibowli||5,600-7,800||18||2.98%|
* Note: Rental Yield has been calculated for a 1,000 sq ft apartment. **Average property prices and rental rates have been calculated as per listings posted on 99acres.com in the studied quarter. ***The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments