In Q1 2022, the Hyderabad housing market saw close to 13,140 units sold, registering the highest sales growth of 199% among all top 7 cities over the corresponding period in 2021, according to ANAROCK’s recent report ‘Riding the Rebound: Hyderabad Real Estate.’
As per the peport, housing sales in Hyderabad touched nearly threefold in 2021 as compared to the preceding year. Nearly 25,400 units were sold in Hyderabad during 2021, witnessing an YoY growth of 197% as compared to 2020. Lower home loan rates, numerous discounts offered by developers and the growing inclination for homeownership post pandemic have pushed sales up in Hyderabad.
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. Average property prices in Hyderabad saw maximum annual rise of 5% among top cities – from INR 4,240 per sq. ft. in Q1 2021 to approx. INR 4,450 per sq. ft. in Q1 2022.
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.
Commenting on the same, Prashant Thakur, Sr. Director & Head, ANAROCK Research, said, “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.
- 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.