Is Hyderabad realty crashing?

With the Kokapet auction fetching Rs 60 crore per acre, realty experts have predicted that Hyderabad’s realty market was safer. They pointed out that investors as well as home buyers have trusted the market which continued a surge even during the Covid pandemic. However, all their predictions have been proved otherwise. The recent report by JLL India had indicated that there was 15 per cent decline in sales during second quarter (April-June) this year when compared to the previous quarter of January-March (Q1) this year.

According to the report, the city sold 3,709 homes in January-March (Q1) this year, but had shown 15 percent decline to 3,157 units in April-June (Q2). Although sales have been sluggish, launches have increased. Hyderabad had witnessed highest launches of new homes when compared to other major cities of the country. The city witnessed launch of 8,591 new homes in the first quarter of this year, while 10,980 homes were launched with a growth rate of 28 per cent in the second quarter. Due to Corona, the city launched 2,949 units in Q1 last year compared to 5,034 units in Q2 last year, an increase of 71 per cent.

Realty sector in India

The Corona pandemic continues to haunt the domestic housing sector. Home sales in the country’s seven major cities fell by 23 percent in April-June (Q2) compared to the previous quarter. However, JLL India said the growth was 83 per cent compared to a year ago. A total of 19,635 houses were sold in Q2 this year in Delhi-NCR, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad and Pune whereas 10,753 units were sold during the same period last year. In January-March (Q1) this year, 25,583 homes were sold.