HYDERABAD: Though Hyderabad continues to attract huge investments in the real estate field during post Covid-19 pandemic, all is not hunky-dory as 83,000 housing units are lying unsold. Among all cities, Hyderabad is at fourth position after Mumbai (2 lakh units), Delhi (1.19 lakh units) and Pune (1.03 lakh units) as far as unsold housing units are concerned.
While in Pune and Chennai, the highest volume of available units falls in the mid-segment, Hyderabad and Bengaluru have the highest number of units in the high-end price bracket. Looking at the year-on-year trend, while Delhi, Chennai, Kolkata and Bengaluru have witnessed a decline in available inventory levels, Hyderabad, Mumbai and Pune have observed a rise in this respective compared to Q1 2022.
City-based realtors said that the lack of demand for housing units has led to the rising cost of construction, registration charges and land rates. This increased the cost of under-construction apartments and to-be-built houses. This apart, launch of new housing projects has been more in Hyderabad which is also one of the reasons for excess availability of housing units.
With regard to launches, Hyderabad has registered a new supply of 14,000 housing units, according to a report by CII Anarock Housing Boom. The surge in new residential supply is attributed to the unwavering appetite for home ownership, with the demand for housing continuing to rise unabated. Consequently, leading and listed developers have ramped up their efforts to meet the demand for new residential properties.
The report said that mid-segment homes continue to drive the housing demand in the real estate market, reflecting a growing preference for budget-friendly and comfortable housing among homebuyers. However, developers are also catering to the demand for premium housing by launching projects in the segment, albeit at a lower rate.
Anuj Puri, Chairman, of Anarock Group said that emerging headwinds could pose a challenge in the short term. Continued inflation concerns and a possible rate hike by the RBI in the near future and recent massive layoffs by several large corporates could dent growth in the upcoming two quarters for the housing market.