In Q4 2020, new housing launches in Hyderabad increased by an incredible 481 percent quarter-on-quarter (QoQ) leading to a 4 percent rise year-on-year (YoY) in the total launches of H2 2020.
Increase in Housing Sales
In Q2 and Q3 2020, launches in Hyderabad took a big hit, as they showed only 42% and 37% of the quarterly average for 2019, respectively. By Q4 2020, with sales volume also picking up pace, revived launches indicate the new research report from Knight Frank.
Hyderabad developed 8,404 home units in H2 2020 and 12,826 home units in 2020 for the residential market. In H2 2020, the city reported 5,260 home units sales and in the year 2020, 10,042 home units. In Q4 2020, sales were up by 127 percent compared to Q3 2020.
In total H2 2020 sales, the share of Rs sub-50 lakh ticket size sales increased from 15 percent in H2 2019 to 24 percent in H2 2020. For the Rs 50 lakh to Rs 1 crore segment, this rise indicates the affordable housing segment's growth in a market where the buyer preference has always been higher.
Structure of demand
Supported by festive season discounts, multi-decade low home loan interest rates, lower residential costs, and higher-income savings, Q4 2020 sales have grown by 127 per cent QoQ.
Due to its proximity to the business districts of Information Technology (IT), West Hyderabad continued to account for the largest share of launches as well as sales in terms of geography. In addition, HMR-Central micro-market launches improved in 2020 by 397 percent YoY, while its revenues in 2020 were comparatively less affected at 19 percent YoY.
As per the reports, among the most affordable metropolitan cities, Hyderabad's real estate market saw a remarkable turnaround in H2 of the Pandemic intervened the year of 2020. Ready inventory has moved rapidly to encourage developers to announce new launches that have received very encouraging answers.
The Pandemic also allowed citizens to appreciate the city interest on infrastructure, social order and ease of life. Hyderabad's real estate home segment promises to be equally attractive to both end-users and developers, with work opportunities remaining positive.
By: Shailaja K