HYDERABAD: Among eight major cities in India, Hyderabad has reported the maximum increase of 39 per cent year-on-year growth in housing sales during the January-March period this year as end-user demand surged despite the Covid-19 pandemic, according to a research report by leading online real estate brokerage firm PropTiger.com.
Hitech City in Hyderabad also has the lowest inventory overhang (time required to liquidate unsold inventories) in 25 months despite a sharp rise in new supply.Over the last few years, Hyderabad’s residential property market, which was affected by the bifurcation of the erstwhile AP, witnessed a steady growth in terms of sales, launches and price appreciation. The trend has continued in the first quarter of the 2021 calendar year, the report said.
The research report “Real Insight - Q1CY21,” housing sales in Hyderabad increased by 39 per cent to 7,721 units in January-March this year from 5,554 homes sold in the same period of the 2020 calendar year. The rise in demand was mostly driven by prominent localities of Hyderabad West like Sangareddy, Bachupally and Kompally.
In value terms, builders sold properties worth `8,400 crore during Q1 2021, up by 34 per cent from the same period last year.“The pro-business State government policies, such as the T-iPass and the ICT Policy, have provided ease of doing business, the effect of which has trickled down to the real estate market,” the report said.
On the supply side, Hyderabad saw a jump of 95 per cent in new launches to 7,604 units in the first quarter of this calendar year. It was observed that the maximum new supply was concentrated in the localities of Nallagandla and Kompally.
“The primary residential market of Hyderabad performed very well during the first quarter of 2021 and has surpassed the pre-Covid sales numbers,” said Mani Rangarajan, Group Chief Operating Officer of Housing.com, Makaan.com and PropTiger.com. “Sales between July last year till March this year were strong, especially for trusted developers,” said Rangarajan.