HYDERABAD: Even as developers claim that the realty sector has picked up after the Covid-19 pandemic saying the flats are getting sold quickly, the unsold residential inventory in Hyderabad has been more than 50 per cent due to significant under-construction projects.
A study by CREDAI, Colliers and Liases Foras revealed the unsold inventory rose by 55 per cent Y-o-Y as the city saw a spurt in launches over the last few months and about 96 per cent of the unsold units are under construction. A majority of the cities witnessed a dip in unsold inventory, except Hyderabad and Ahmedabad in the last quarter.
Rising costs
According to city-based realtors, the cost of construction, registration charges and land rates have gone up in the past year, and this increased the cost of under-construction apartments and to-be-built houses. “Many houses which were built are left unoccupied due to high costs. Even in the [city] outskirts, the cost of a 2BHK is not less than Rs 50 lakh. The cost of flats has increased by Rs 10 lakh and in turn, become unaffordable,” said N Praveen, president of the Telangana Realtors Association.
On the other hand, the report said that despite the unsold inventory, the city has seen resilient demand during the pandemic led by employees in the technology sector. As a result of the demand and new launches, prices in the south-western part of the city grew at 15 per cent Y-o-Y. The overall housing prices in Hyderabad rose by eight per cent Y-o-Y.
2nd most expensive market
The average housing prices in Hyderabad which used to be around Rs 5,000 to Rs 6,000 per sq.ft a couple of years ago, have risen, making the city the second most expensive residential market after Mumbai. As of Q2 2022, the average prices in Hyderabad stood at Rs 9,218 per sq.ft.
The main micro markets for residential units in Hyderabad are Himayat Nagar, Somajiguda, Begumpet, Ameerpet, ECIL, Ghatkesar, Malkajgiri, Medchal, Banjara Hills, Gachibowli, Kondapur, Kukatpally, Miyapur, Nanakramguda, Boduppal, Karmanghat, Kothapet, LB Nagar, Uppal, Kokapet, Manikonda, Puppalguda, Shaikpet and Shamshabad.