Hyderabad: Despite several new businesses kicking off in the city, a rise in its housing sales inventories was observed when compared to last year with 83,700 housing units yet to be sold.
According to a report by CII Anarock Housing Boom, Hyderabad witnessed an 18 percent rise in its housing sales inventories when compared to those in 2022.
While NCR, Chennai, Kolkata and Bengaluru witnessed a decline in available inventory levels in the year on trend, MMR and Pune joined Hyderabad with respect to an increase in their housing sales inventories by 13 percent and 6 percent respectively.
The report further states that Pune and Chennai have the highest volume of available units falls in the mid-segment, while Hyderabad and Bengaluru have the highest number of units in the high-end price bracket.
Property consultant Knight Frank India stated that registration of residential properties in Hyderabad fell by 3 percent to 5274 units in February 2023.
The residential market includes four districts, namely Hyderabad, Medchal-Malkajgiri, Rangareddy and Sangareddy.
The total value of properties registered stood at Rs 2816 crore in February against Rs 2837.7 crore in the year-ago period.
Registrations of residential units in the price band of Rs 25 lakhs remained highest, constituting 51 percent of the total registrations in February 2023.
Reasons behind the lack of demand
Average property prices have risen by 6 to 9 percent yearly amidst an escalation in input costs and overall increased sales.
Interest rates are still lucrative despite successive rate hikes by the RBI; it continues to be lower than during the global financial crisis of 2008.
Increasing focus on sustainable development with developers incorporating eco-friendly features into residential projects to minimize the impact on the environment
Rental demand heading northward substantially across most top cities since companies are calling their employees back to the office.
Meanwhile, headwinds such as impending global recession, continued inflation, and repo rate hike are likely to have a short-term impact on the housing sales market.
On the other hand, Hyderabad took the lead in luxury and ultra-luxury segments due to its growing economy and rising number of high-net-worth individuals with 14,300 new sales in the first quarter of 2023.
Analyzing the new launches across the top 7 cities in terms of budget segmentation, MMR (Mumbai Metropolitan Region) led the way with a strong presence across affordable, mid-end, and high-end segments indicating a healthy housing demand across the income spectrum in the city.
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