Hyderabad, April 2022 – The Hyderabad housing market is unstoppable, within consistently rising launches and sales momentum post-COVID-19. According to ANAROCK’s recent report Riding the Rebound: Hyderabad Real Estate, housing sales in Hyderabad increased almost three-fold in 2021 over the preceding year. While the city remains the most affordable residential market among the top 7 cities at approx. INR 4,450 per sq. ft., it has ample scope for future growth. In fact, affordable residential and commercial property rates are a prime factor driving real estate activity in the city.
Prashant Thakur, Sr. Director & Head – ANAROCK Research, says, “Thanks to its property market’s multi-faceted accelerators, Hyderabad now draws interest from all stakeholders including investors, homebuyers, and developers. Its high-performing socio-economic dynamics, well-developed infrastructure, relatively affordable prices – and, not least of all, the slowdown on Amaravati’s real estate market – all work in its favour. Amaravati’s loss has been Hyderabad’s gain over the past 4-5 quarters.”
Notable data trends:
- As per the ANAROCK report, Hyderabad saw approx. 25,400 housing units sold in 2021 – a 197% Y-o-Y growth over 2020. Lower home loan rates, discounts by developers, and the growing post-pandemic inclination for homeownership helped boost sales
- In Q1 2022, the city saw approx. 13,140 units sold, registering the highest sales growth of 199% among all top 7 cities over the corresponding period in 2021
- Robust sales in the last one year trimmed housing inventory overhang from 53 months in Q1 2021 to approx. 27 months in Q1 2022 – a massive 26-months decline
- Hyderabad housing prices saw the biggest annual rise of 5% in average property prices among the top 7 cities – from INR 4,240 per sq. ft. in Q1 2021 to approx. INR 4,450 per sq. ft. in Q1 2022
- In terms of new residential supply, Hyderabad saw an all-time high of new launches in 2021 – 234% higher than the average historical yearly supply
- In Q1 2022, Hyderabad was second only to MMR in new launches, accounting for a 24% share among the top 7 cities. Q1 2022 saw 21,500 new units launched – a 41% growth over Q4 2021, and 71% rise over Q1 2021
- West Hyderabad was the major new launches contributor in Q1 2022, accounting for 60% of the city’s new supply. North Hyderabad came second, contributing approx. 32% of the city’s new launches. East and South Hyderabad together accounted for a mere 5% of new residential units launched
- More than half of the new launches (approx. 51%) were in the high-end segment priced b/w INR 80 lakh to INR 1.5 Cr, followed by 29% in the mid-segment (INR 40 lakh – INR 80 lakh), and 11% in the luxury housing segment (INR 1.5 Cr – INR 2.5 Cr). The affordable housing (<INR 40 lakh) and ultra-luxury segment (>INR 2.5 Cr) together accounted for less than 10% of Hyderabad’s new launches in Q1 2022