- Annual residential enquiries in Hyderabad plummeted by 30 percent in Oct-Dec 2020 and the transactions nose-dived by around 50 percent, YoY.
- The average capital prices remained stable in Q4 2020 as developers refrained from offering headline price reductions amid lean profit margins.
- New project supply improved significantly with 73 projects, including phases, being launched in the quarter, as against 53 projects in Q4 2019.
- Annual rental enquiries in Hyderabad plunged by 40 percent, YoY, in Oct-Dec 2020. Despite landlords being flexible with security deposits and offering shorter lease terms, the home renting trend across the city reeled under pressure.
- Hyderabad led the pack with maximum office space absorption in Q4 2020 amongst all metro cities. Along with Bangalore, it accounted for over 50 percent of net office space absorption recorded across metros.
* Supply is basis properties listed on 99acres.com * Demand is basis queries received on 99acres.com
The cumbersome Land Regularisation Scheme (LRS) and property registrations in abeyance weighed down the home buying sentiment in Hyderabad in Oct-Dec 2020. Annual residential enquiries plummeted by 30 percent and the transactions nose-dived by around 50 percent, YoY. Mere 1,100 units were sold in Q4 2020, with majority being in the areas abutting the western IT/ITeS hubs and the crucial connectivity corridors of Srisailam Highway and the Outer Ring Road (ORR).
New launches in the city improved significantly with 73 projects, including phases, being launched in the quarter, as against 53 projects in Q4 2019. Amid the depleting share of ready-to-move inventory, many developers came forth to announce projects. While Grade B and C developers adopted a cautious stance amid limited offtake, Grade A developers picked up the baton. Maximum inventory added to the market was by ace developers including, Aparna Group, DSR Developers and Myhome Constructions, among others.
The demand-supply disequilibrium increased the unsold inventory by five percent to 28,000 units against 26,500 units in Jul-Sep 2020. However, despite this, the average capital prices in Hyderabad remained stable in Q4 2020 as developers refrained from offering headline price reductions amid lean profit margins. Moreover, with commercial investments moving apace in the software sector, experts forecast that real estate values in Hyderabad are only set to rise in the upcoming quarters.
Key micro-markets across budget segments
|Key micromarkets||Average Capital 'Asks'||Average Rental 'Asks'||Rental Yield|
|Within Rs 40 lakh||Tolichowki||3,140-4,250||12||3.42%|
|Rs 40 lakh - Rs 1 crore||Miyapur||3,610-4,560||12||3.10%|
|Rs 1 crore and above||Kondapur||5,390-6,970||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