Real estate in Hyderabad

  

Real estate in Hyderabad: Demand-supply mismatch increases property rates

 

Hyderabad: Real estate in Hyderabad has witnessed a significant increase in property rates due to a demand-supply mismatch, according to the Magicbricks PropIndex Report (January – March) 2023. The report revealed that residential demand in Hyderabad grew by 6% QoQ while supply decreased by 14.2% QoQ, resulting in a 5.8% QoQ increase in property rates. The localities of Gachibowli, Miyapur, and Kondapur in western Hyderabad experienced the highest residential demand due to their proximity to the Nehru ORR and major employment hubs.

The demand for mid-segment properties (Rs 5000-7000 per square feet) has been increasing, accounting for approximately 50% of the demand and supply in the city. With a continued preference for spacious homes, 2 and 3BHKs commanded 90 percent of the total demand in the city.

Elaborating on the trends of real estate in Hyderabad, Sudhir Pai, CEO of Magicbricks commented, “Several multilateral agencies have projected that the Indian economy will grow by 6-7% in FY’ 23, despite the global slowdown. The recent Union Budget has also introduced several encouraging initiatives, including substantial allocations to PMAY and UIDF, which have set the wheels in motion for facilitating employment opportunities and infrastructure development. Given the under-served demand for home-ownership in the affordable and mid-range segment, we are optimistic about the growth trajectory for residential demand in the coming quarters as well. We anticipate that the market will stabilise, supplemented by new projects and expedited delivery of under-construction properties, which will open up new avenues for investment and innovation.”

The report also highlighted that Mehdipatnam (4.27%), Police Colony- Kondapur (3.96%), and Balanagar (3.75%) experienced the highest increase in prices QoQ, while prices in Banjara Hills (-3.94%), Boduppal (-3.77%), and Nanakram Guda (-3.39%) decreased QoQ.

What are the Predictions for Real Estate Trends in Hyderabad

 

Hyderabad has become one of India's metro areas with the quickest growth and highest levels of prosperity. Commercial and residential properties both contribute to success. It now encompasses the entire state of Telangana. The city is positioned to become a hub for manufacturing, IT, and ITeS companies worldwide, and its real estate market shows no signs of slowing down. Let's examine the causes of Hyderabad's real estate boom.

 

What are the real estate market predictions for 2023?

What will happen to the housing market over the upcoming year and beyond is difficult to predict. However, several specialists have predicted the real estate market's situation in 2023.

Most experts anticipate that the market will remain one-sided in favor of sellers for some time. But when mortgage rates rise, more available real estate can become available. So it won't be a significant enough adjustment to shift from a seller's market to a buyer's market, despite the possibility of more homes being put on the market.

Real Estate Trends in Hyderabad

• Hyderabad's resiliency is demonstrated by the fact that new project launches have recovered.
• Hyderabad saw an increase in the introduction of new projects. Compared to debuts in the financial year 2019–20, new launches have increased by nearly 10%.
• In the mid-to-affordable sector, which is defined as Rs 30 to 40 lacs and made up of the Rs 40-70 lacs segment, about 55% of new projects are launched. 
• The ease of doing business in Hyderabad/Telangana is aided by proactive initiatives to boost Telangana's business growth, such as T-iPass and ICT Policy. It has other favorable effects on Hyderabad's real estate market.
• Hyderabad was among the first cities in the nation to see construction activity pick up again once the ban was lifted. It is a significant achievement for Hyderabadi real estate.
• It is heartening to see that 3 Bhk homes remain the preferred option for homebuyers in Hyderabad, although 2 Bhk units are also in demand. It is a matter of affordability rather than a choice that people go for two-bedroom units.
• People are prepared to upgrade from their pre-COVID choice because of the pandemic's restored faith in real estate. That is why people who had their hearts set on a two-bedroom apartment are suddenly considering three.
• Unsold inventory in Hyderabad stands at over 35,000 units in the financial year 2020-21. The number of new takeoffs the city has witnessed is a healthy number.
• Even the list overhang of 30 months is too short for Hyderabad to collect for the entire country.
• Due to Hyderabad's home purchasers' revived enthusiasm, approximately 12,000 new residences were introduced in Hyderabad in the final three months of 2020, specifically in October, November, and December.
• The Commercial Real Estate Investment Market is a complicated network of businesses in several economic sectors. Changes in the state of the world economy will significantly impact and be linked to the future of businesses in this industry. Several variables affect a company's strategy, overall performance, and profitability depending on the organization's focus, such as land and development, retail shopping centers, industry/office space, or apartments and multi-family homes.