Hyd sees highest sales growth of 199% at 13,140 units in Q1

Average property prices in Hyderabad saw maximum annual rise of 5% among top cities - from Rs 4,240 per sft in Q1 2021 to Rs 4,450 per sft in Q1 2022

Hyderabad: The Hyderabad housing market is unstoppable, within consistently rising launches and sales momentum post-Covid-19. The city has registered the highest sales growth of 199 per cent among all top seven cities in India at 13,140 units sold in Q1 (January-March) 2022, over the corresponding period in 2021, as per a recent report.

According to real estate consultancy Anarock's report 'Riding the Rebound: Hyderabad Real Estate', the housing sales in the city increased almost three-fold in 2021 over the preceding year. While the city remains the most affordable residential market among the top seven cities at Rs 4,450 per sft, 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. The housing prices saw the biggest annual rise of 5 per cent in average property prices among the top seven cities – to approximately Rs 4,450 per sft in Q1 2022 from Rs 4,240 per sft in the same quarter previous year.

Prashant Thakur, Sr Director and Head - Anarock Research, says: "Thanks to its property market's multi-faceted accelerators, Hyderabad now draws interest from all stakeholders including investors, buyers, and developers. The city's high-performing socio-economic dynamics, well-developed infrastructure, relatively affordable prices, and the slowdown on Amaravati's real estate market - all work in its favour."

He further said, "Amaravati's loss has been Hyderabad's gain over the past 4-5 quarters. In 2021, Hyderabad saw a 197 per cent Y-o-Y growth in housing sales at 25,400 units over the previous year. Lower home loan rates, discounts by developers, and the growing post-pandemic inclination for homeownership helped boost sales."

The robust sales in the last one year trimmed housing inventory overhang from 53 months in Q1 2021 to 27 months in Q1 2022 – a massive 26-months decline. In terms of new residential supply, the city saw an all-time high of new launches in 2021 – 234 per cent higher than the average historical yearly supply. In Q1 2022, the city was second only to Mumbai in new launches, accounting for a 24 per cent share.

West Hyderabad was the major new launches contributor in Q1 2022, accounting for 60 per cent of the city's new supply. North Hyderabad came second, contributing 32 per cent of the city's new launches. East and South Hyderabad together accounted for a mere 5 per cent of new residential units launched. About 51 per cent of the new launches were in high-end segment priced at Rs 80 lakh to Rs 1.5 crore. While the mid-segment (Rs 40 lakh – Rs 80 lakh) occupies 29 per cent, the luxury housing segment (Rs 1.5 crore – Rs 2.5 crore) stood at 11 per cent. The affordable housing (less than Rs 40 lakh) and ultra-luxury segment (above Rs 2.5 crore) together accounted for less than 10 per cent of Hyderabad's new launches in Q1 2022.