In the first quarter of this year — i.e., between January and March — Hyderabad has shown robust growth in residential sales. Residential unit sales in the city showed a 4% increase at 3,709 units in Q1 2021, as compared to 3,570 units in Q4 2020 and an increase of 23% as compared to 3,027 in Q1 2020 (pre-Covid period).
Steady Growth in Residential Inventories
As per JLL research, in the first quarter of 2021, the volume of Hyderabad's quarterly residential launches remained high, when compared with all the quarters of 2020. The western suburbs continued to account for a majority share of new launches with new projects focused in areas like Kondapur, Miyapur and Nallagandla. The northern suburbs contributed to total start-ups in the city by 43 per cent.
The new launches increased from 2,949 in Q1 2020 to 8,591 in Q1 2021. New launches in the affordable segment (less than Rs 50 lakh) significantly grew to 48 per cent during the quarter as well. Since the city has a limited stock in the ready-to-move-in category, homebuyers have shown their interest in the recently launched projects by prominent developers. Areas such as Kompally and Bachupally have emerged as the new destinations for homebuyers, alongside prominent locations adjacent to IT hubs in the western suburbs, due to improving infrastructure and connectivity to established IT hubs in the city.
Increasing demand and low inventories of ready-to-move-in projects have kept city prices stable. With sales expected to return to normalcy, capital values have improved marginally in the submarkets of the city's eastern and northern suburbs.
By: Shailaja K