HYDERABAD: Housing prices in Hyderabad have jumped seven per cent in the last quarter of 2021. After the appreciation in average prices, Hyderabad has become the second-most expensive housing market after Mumbai Metropolitan Region, according to PropTiger, an independent real estate advisor. This growth in annual prices of the new apartments could primarily be attributed to the spike in rates of construction materials after the Covid-19 outbreak in early 2020 due to supply-side constraints.
According to PropTiger, the average per square foot rate of housing projects in Hyderabad now stands at Rs 5,900 to Rs 6,100. Along with Ahmedabad, Hyderabad recorded the highest price rally during the last quarter of 2021, a period that covers the festive season in India. Demand for housing continues to be robust in the capital city of Telangana with home sales numbers for 2021 recording a 36 per cent jump when compared to the same period in 2020. Against 16,400 units in 2020, a total of 22,239 homes were sold in 2021.
While Bachupally, Tellapur, Miyapur were the most preferred localities by Hyderabad homebuyers during 2021, 3BHK homes remained the preferred configuration, claiming 48 per cent share in sales figures. Prompted by an improvement in consumer sentiment, the new supply in Hyderabad also grew two-fold over the previous year from 22,940 units in 2020 to 48,566 in 2021.
The majority of the new supply during the year was concentrated in micro-markets of Puppalaguda, Miyapur and Bachupally, the report shows adding that 36 per cent of units launched were in the over Rs 1 crore price bracket.
“The recent festive season in 2021 has had a visible impact on demand as well as supply, resulting in positive changes for the Hyderabad housing market. As the economy settles in, providing buyers with higher job security, this recovery process in real estate might gather more steam in 2022,” said Rajan Sood, Business Head, PropTiger.