The number of houses remained unsold so far crossed 12,000 in Hyderabad. If every thing goes well, it would take at least 10 months to sell them. Moreover, it is possible to sell them in the absence of any third wave of Covid-19. In case of the third wave, selling the homes would be delayed further.
The realty sector growth is directly proportional to IT sector growth. If the IT sector is in boom, the realty sector also booms. If the IT sector slumps, the realty sector collapses.
During economic recession in the USA, the demand for homes came down. Later, the realty sector recovered to an extent.
Similarly, during Telangana Movement, the realty sector was affected. In the new state, after 2014, the realty sector is forging ahead. Since then, the property market in Hyderabad grew. The demand and supply mismatch of homes and limited sales of homes pushed the prices in Hyderabad market further. The prices of homes remained more or less stable even at the height of Covid-19.
According to a survey by Knight Frank, out of the eight cities the prices of homes did not slump only in Hyderabad.
In first six months of 2021, in Hyderabad market 16,712 housing units were launched, but only 11, 974 were sold. The average price of square metre is Rs 50,803, while the average price of sft is put at Rs 4,720. The number of houses remained unsold was put at 11,918. It would require 3.2 quarters to dispose them of.
- The first six months of 2021 registered record level growth in residential market compared to the corresponding period in 2020. House sales grew by 150 per cent, with the West Hyderabad accounting for 63 per cent of the sales.
- The growth in new structures increased 278 per cent, while the West Hyderabad accounted for 312 per cent growth in new structures. The West Hyderabad ranked number one in the growth.
- In view of work from home becoming popular in the wake of Covid-19, the demand for large homes has swelled.
- The average prices of residential projects registered growth by 1 per cent. The sft in the first six months of 2021 increased to Rs 4720 as against Rs 4673 in the first six months last year.
- During the past five or six years, Hyderabad emerged as crucial IT hub. Several MNCs have set up their offices here bringing Hyderabad into the sharp focus of one and all. The pharma, life sciences, food processing, electronics and other sectors are on growth trajectory, thanks to the state government. As a result, the city emerged favourite destination for investors. The favourable IT and industrial policies are one of the plus factors for investors. In this backdrop, the city will grow in leaps and bounds.
