With a host of tech companies and residential units, Gachibowli remains the most active sub-market in Hyderabad’s real estate sector. Among all corridors, the western corridor accounts for 64 per cent share in the quarterly launches (6,500 units), followed by the northern corridor with a 25 per cent share. The Gachibowli micro-market in the western part of the city continues to show its dominance in residential launches accounting for 49 per cent of the quarterly launches. In Q3 2022, 10,000 residential units were launched in the area.
The growth is spilling over to adjacent areas as well. Tellapur in the western corridor topped the list in terms of quarterly new launches (40 per cent) driven by growing consumer confidence, seamless connectivity to the financial district and availability of affordable land parcels suitable to build large residential projects.
However, on a year-to-date (YTD) basis, Bachupally in the northern corridor recorded the highest quantum of new residential supply accounting for 12 per cent share in YTD launches (40,500 units) followed by Kokapet and Kollur locations in the western corridor, with 10 per cent and nine per cent shares, respectively.
The high-end segment remained a major contributor (52 per cent) to the quarterly launches followed by the mid-segment with a 44 per cent share. Despite recording a decline of 15 per cent over the previous quarter, the high-end segment witnessed a staggering three-fold growth on a y-o-y basis driven by new launches in the western sub-markets of Tellapur, Manikonda, Kollur and Lingampally.
According to the data by Cushman & Wakefield, average property prices in the city remained stable during the quarter. Select locations such as Kollur, Patancheruvu, Tellapur, Nallagandla and Kompally recorded a marginal q-o-q increase of three to five per cent backed by a rise in end-user demand. This rise in buyer interest was mainly driven by seamless connectivity to the IT corridor and a significant number of projects nearing completion.
Property prices in the city are expected to remain range-bound in the short to medium term due to the slowdown in land values. Rental values across the city remained unchanged during the quarter and are most likely to remain stable for the rest of the year due to the higher availability of rental properties across the city. However, select residential projects located closer to IT corridors might record a spike in rentals as more employees return to offices in the last couple of quarters.