HYDERABAD: With demand for housing remaining high as people are spending considerable time at home due to work-from-home (WFH) system and remote working, there has been great demand for larger homes that cater to the needs of office work and e-schooling realities.
According to Anarock Property Consultants, in the past two years, demand has been skewed towards homes that are large enough to accommodate the new WFH and e-schooling realities. The average sizes of new unit launches have risen by 26 per cent.
There was a high demand for larger houses and as a result, mid-segment (units priced between Rs 40 lakh-`Rs 80 lakh) and high-end (units priced between Rs 80 lakh- Rs 1.5 crore) did well. Altogether, around 65 per cent of the supply between January-September came in these segments.
The report highlighted that the luxury and ultra-luxury segment fared well as the net worth of the target group for luxury offerings was not severely impacted by the Covid-19 pandemic. These buyers pro-actively closed deals to take advantage of market conditions.
Villas, farmhouses and second homes were also in demand as buyers looked to purchase properties that offered superior social distancing and lower infection risk in less populated, greener environs.
The real estate stocks boomed in the year 2021 as developers garnered good sales and were actively launching new projects.
In 2020, 1.28 lakh new residential units were added across the top seven cities including Hyderabad, Bengaluru and Mumbai, while sales were clocked at 1.38 lakh units. Between January-September in 2021, 1.63 lakh units of new residential supply were added, 27 per cent higher than 2020 and 1.45 lakh units were sold, five per cent higher than last year.
2022 will be even better
Meanwhile, the residential real estate market seems to have embarked on a long-term upcycle, and the year 2022 is very likely to fare better than 2021. Compared to last year, the real estate market in 2022 will see lower volatility, the report said.
It is anticipated that new supply and sales of residential properties may reach 2019 levels by the next year and the prices of such segments may appreciate in the range of five to 10 percent. Mid-end and high-end housing segments will continue to drive a majority of the demand.
1.45 lakh residential units sold in 9 mths
In 2020, 1.28 lakh new residential units were added across the top seven cities including Hyderabad, Bengaluru and Mumbai, while sales were clocked at 1.38 lakh units. Between January-September in 2021, 1.63 lakh units of new residential supply were added, 27 per cent higher than 2020 and 1.45 lakh units were sold, five per cent higher than last year