HYDERABAD: Following the rise in real estate prices along with the hike in interest rates on bank loans, a large number of housing units are lying vacant in many pockets of the city. Post-pandemic, many developers across Hyderabad have built new housing units to cater to future needs. However, buyers are not in a position to spend Rs 70 lakh for a 2BHK unit, or over Rs 1 crore for a 3BHK unit, which is the average price in many parts of Hyderabad. It’s learnt that Hyderabad has an inventory of over 80,000 unsold units.
Realtors attribute the increase in unsold inventory to the rising cost of construction, registration charges and land rates that have gone up. They say that this has increased the input cost of under-construction apartments and houses. All this has become a burden for the buyers making it difficult to purchase.
As per a report by CREDAI - Colliers - Liases Foras, unsold inventory increased by 24 per cent YoY in Hyderabad, largely led by the spurt in launches along the southwest micro market. Housing prices for newly-launched projects are expected to grow amidst a steady rise in land values, it said.
The report said that overall, housing prices surged 13 per cent YoY with Central Hyderabad witnessing the highest rise at 69 per cent YoY amidst the launch of new high-end projects. Prices of 4BHK units saw the highest increase at 19 per cent YoY, followed by 1BHK units at 16 per cent YoY.
The average values of new and available properties in Hyderabad registered an upward price movement of 13 per cent due to a rise in input costs, inflationary pressures and premiums attached to ready-to-move-in inventory. Many houses which were built are left unoccupied due to high costs. Even on the outskirts of the city, the cost of a 2BHK is not less than Rs 50 lakh.
With the increased demand for spacious dwellings, developers continue to launch high-end projects, which has pushed housing prices for under-construction units northwards in markets like Kolkata, Hyderabad and Bengaluru, the report added.
“Over the last 10 quarters, there has been a consistent upward trend in housing prices across the country. While developers continue to grapple with the challenges of higher costs of construction, housing demand remains unwavering,” said Peush Jain, managing director, of Occupier Services, Colliers India.