Sales in Hyderabad dwindling

Prices increased due to rising construction costs
Land prices and registration charges too have increased
Adverse impact on overall sales

Even though the real estate sector across the country has recovered after the Corona pandemic, the situation is different in Hyderabad. As many projects are still under construction, the unsold residential inventory is more than 50 percent. This was revealed in a joint study conducted by CREDAI, Colliers and Liases Foras. The report indicated that although the launch of new projects in Hyderabad has been booming for the past few months, this year’s unsold inventory is 55 percent compared to last year. It was discovered that 96 percent of the unsold residential units are under construction. The report said that the unsold inventory has decreased in the remaining cities except Hyderabad and Ahmedabad.

There are numerous reasons for the increased unsold inventory of properties in Hyderabad. Apart from rise in construction cost, registration charges and land prices increased drastically last year. As a result, many houses remained under construction and the completed houses were not sold which in turn escalated the unsold inventory. Even in the suburbs of Hyderabad, the price of a 2 BHK flat is not less than Rs 50 lakh. President of Telangana Realtors Association N Praveen opined that as the prices of flats have increased by around Rs 10 lakh, many people are unable to purchase flats. On the other hand, the demand for houses has increased from the employees of the IT sector which in turn prompted for launch of new projects. During the period, the prices of houses in the south-west region of Hyderabad have increased by 15 percent. Overall house prices in Hyderabad increased by eight percent.

Within the last two years, the residential property prices in Hyderabad have surged from Rs 5,000 to Rs 6,000 per sq.ft. This has made Hyderabad the second most expensive city after Mumbai. And in the second quarter of this year, the average price had peaked at Rs 9,218 per sq.ft. Property prices have increased by five per cent in eight major cities including Bengaluru across the country. Delhi-NCR witnessed the highest increase of 10 percent. Ahmedabad is second with 9 percent growth, while Hyderabad is third with 8 percent growth.

Meanwhile, the major micro markets for residential units in Hyderabad are Himayat Nagar, Somajiguda, Begumpet, Ameerpet, ECIL, Ghatkesar, Malkajgiri, Medchal, Banjara Hills, Gachibowli, Kondapur, Kukatpally, Miyapur, Nanakramguda, Boduppal, Karmanghat, Kothapeta, LB Nagar, Uppal, Kokapet, Manikonda, Puppalaguda, Shaikpet, and Shamshabad, the report said.