The upward revision of registration costs for the second time in the last one year has discouraged homebuyers and slowed down property sales. Hyderabad posted a 25% drop in registration of apartments in February 2022.
Although low sales and rising cost of construction material have troubled the developers’ community, low lending rates continue to attract first-time homebuyers. However, the challenge lies in timely completion of projects and bridging the gap between demand and supply of properties priced under ₹1 crore as availability of these units is approximately 20% lower than demand, said a 99acres Insite Report released on Wednesday.
The city saw 57 new housing societies being launched and over 21,000 housing units added during January to March 2022. Maximum supply was added in the price range of ₹70 lakh to ₹2.5 crore, and most of these projects are expected to be completed by 2027-28.
More than 5,500 home sales were registered in January 2022, with maximum transactions for properties priced within ₹50 lakh. Residential pockets in West Hyderabad continued to find favour with new buyers.
While peripheral areas of Shankarpally, Ghatkesar and Medchal witnessed a steady appreciation in property rates in the past few months, Puppalguda clocked a steep hike in average ‘asks’, with land prices hovering around ₹2 lakh per square yard. Society apartments in Hafeezpet and Boduppal posted a quarterly surge of 5% in property values, thanks to sound road connectivity and well-developed infrastructure.
Rental market of Hyderabad, like other IT-driven metros, has been under pressure for the past two years due to work-from-home culture. The vacancy rates are expected to dip in the subsequent quarters with professionals returning to the city following the announcement of hybrid work culture in many corporates.
The report said 2BHK and 3BHK units witnessed maximum demand, especially in Tellapur, Bachupally and Miyapur. Manikonda, Hi-Tech City and Kondapur led with maximum supply with monthly ask rentals for a 2BHK home in the range of ₹12,000-₹15,000, ₹21,000-₹28,500 and ₹15,600-₹19,000, respectively.
Buying rates for apartments in the city averaged at ₹6,500 to ₹7,500 per sq ft. Areas such as Narsingi, Miyapur, Bachupally, L.B. Nagar, Pocharam, Patancheru, Tellapur and Gopanpally led the pack in terms of new launches, home enquiries and sales.
Prominent builders coming up with new developments include Ramky Group, Aparna Constructions, Rajapushpa Properties, Praneeth Group, APR Projects, GK Developers and Ira Developers.
Hyderabad’s unsold housing stock will take approximately 36 months to sell completely. With demand overweighing supply, the inventory is expected to stabilise in the coming quarters. Noticeably, 3BHK homes form the bulk of this unsold inventory.
“Residential markets across the top eight cities together contributed to a four-year high in sales volume in January-March 2022. Homebuyers were seen visiting sites and closing deals in new homes and resale markets despite initial lockdowns due to rising virus load in January 2022,” said 99acres.com chief business officer Maneesh Upadhyaya.
