- Despite the recovery in residential enquiries and sales until February 2021, Hyderabad’s realty witnessed a roadblock mid-way due to rising number of COVID-19 cases and the resultant decline in property site visits and transactions.
- West Hyderabad, being a popular zone among the buyers, reported an increase of 60 percent in the number of new launches, QoQ, in Jan-Mar 2021.
- Areas, such as Kokapet, Narsingi, Financial District and Tellapur, in the western quadrant of the city remained popular amongst the homebuyers.
- With sales velocity taking a hit, unsold inventory grew by nine percent, YoY, and stood at around 29,000 units at the end of March 2021.
- The market for rental housing remained grim as the majority of professionals continued to work from home. Price negotiations up to 20 percent remained evident throughout the quarter.
- The average property prices across the city grew by a marginal one percent, QoQ, in the studied quarter.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
One of the most affordable metro cities in India – Hyderabad - posted some improvement in residential enquiries and sales volume in Jan-Mar 2021 against Oct-Dec 2020. However, unlike expectations, the Jan-Mar 2021 quarter hit a roadblock mid-way with a sharp increase in COVID-19 cases starting February 2021. Property site visits and transactions surged consistently until February, only to go downhill in March, dampening hopes of an early revival.
The same was reiterated with the stamps and registration department clocking revenues worth Rs 950 crore and Rs 640 crore in January and February, respectively. With the figures plummeting significantly in March, the authorities are anticipating major loss of revenue in the financial year 2020-21.
Even as demand fluctuated through the quarters, the property rates seemed to appreciate by an average of Rs 200-500 per sq ft in the last six months. For instance, West Hyderabad remained the buyers’ favourite due to a thriving IT/ITeS industry, and popular areas like Kokapet, Narsingi and Financial District posted a price rise of 1-2 percent, QoQ. New launches, too, were largely concentrated in the western region and posted a significant hike with over 120 new projects being added in Jan-Mar 2021 as against over 75 projects in Oct-Dec 2020.
Unsold inventory grew by nine percent, YoY, and stood at around 29,000 units at the end of March 2021. With sales velocity taking another hit this quarter, the number of unsold units is expected to increase in the next few months.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Chandanagar||2,800-4,000||14||3.54%|
|Rs 40 lakh - Rs 1 crore||Miyapur||3,700-4,500||11||3.10%|
|Rs 1 crore and above||Kondapur||5,300-6,900||16||3.11%|
* 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