HYDERABAD: With property values in Hyderabad witnessing seven per cent increase in the first quarter of this year, the average rate of properties in the State capital are now over Rs 6,000 per sqft, making it the second most expensive market in the country.
According to online real estate company PropTiger.com, among eight prime residential markets of the country, the property values are highest in Mumbai at Rs 9,800 to Rs 10,000 per sqft, followed by Hyderabad (Rs 6,000 to Rs 6,200 per sqft) and Chennai (Rs 5,700 to Rs 5,900 per sq.ft).
The report said that the price rally in Hyderabad continued amid a drop in home sales. While new supply increased 92 per cent during Q1 2022 when compared to the same period last year, residential sales in the city witnessed a 15 per cent fall in the period covered. On a quarter-on-quarter basis, however, sales registered a 53 per cent jump.
A total of 6,556 units were sold in Hyderabad in Q1 while 14,572 new homes were launched during the three-month period.From a city that not very long ago had the best inventory profile, Hyderabad is now staring at a huge inventory stock and an increased inventory overhang.
Real estate developers in Hyderabad would take an estimated 42 months to sell off the unsold stock, consisting of 73,651 units. In the same period last year, inventory overhang in Hyderabad stood at 25 months.
“Aside from skyrocketing construction material costs, price growth in Hyderabad is also being fuelled by an improvement in demand for large, luxury homes,” said Mr Vikas Wadhawan, Group CFO, PropTiger.com, Housing.com & Makaan.com.