HYDERABAD: Post Covid-19, most citizens are preferring luxury homes, resulting in luxury projects contributing a whopping 44% in quarterly launches followed by the mid-segment with a 33% share. According to Cushman & Wakefield, during the year, the high-end segment witnessed the highest quantum of launches, indicating robust demand for this category among investors and end users.
Around 75% of the luxury and mid-segment unit launches in Q4 were recorded at locations along the Western corridor and 3,000 units of these units fall in the Gachibowli submarket. Similar to the previous quarters, the affordable segment witnessed negligible launches during Q4.
Average quoted prices at the city level remained unchanged during the quarter. However, property prices in the Western corridor have increased by 3% to 5% quarter on quarter, driven by strong end-user demand and a moderate rise in land prices.
The emergence of new office markets along the ORR will continue to drive the demand in locations such as Narsingi, Kokapet, Tellapur, Gopanpally, and Nallagandla. Rental demand, particularly near the IT hubs, has seen a constant rise, with a higher share of the workforce returning to their offices. This increased demand for rental apartments has led to a growth of 5% in housing rentals in these areas and rentals are expected to rise further in the coming quarters.
Meanwhile, Hyderabad witnessed a launch of over 9,000 units in Q4 2022 adding to a total of around 50,000 units during the entire year 2022, a 7% increase over 2021. Western corridor remained dominant (85% ) in Q4 2022 and accounted for 65% of the unit launches during 2022, which saw the addition of 33,000 units.
In addition to the western corridor, locations like Miyapur, Bachupally, and Nizampet (suburban markets in the north) cumulatively contributed around 16 percent of annual launches i.e.7000+ units in this year. Within the western corridor, Kokapet and Kollur together saw 20+ residential projects (~9000 units) launched in 2022, followed by Bachupally in the northwest corridor with 10+ projects (~5000 units).
The accessibility of these locations to ORR and their proximity to the main city areas are making them attractive locations for home buyers to settle as well as to invest.
75% new units in western corridor
Around 75% of the luxury and mid-segment unit launches in Q4 were recorded at locations along the city’s Western corridor.
The emergence of new office markets along the ORR will continue to drive the demand in locations such as Narsingi, Kokapet, Tellapur, Gopanpally.