Hyderabad Real Estate market is making its comeback after a period of quiet during the pandemic. People are clearly interested in larger configurations, bigger homes as the need for more personal space during the lockdown got a new meaning.
Capturing residential trends among the top six Indian cities in quarter 3, 2021, the latest report by Square Yards clearly reflected that Hyderabad was one of the top real estate markets for the period. After a lull roused by the pandemic, it was about time Hyderabad real estate recovered and got back on its feet.
The report showed that, with 20% online searches, Hyderabad was one of the most searched cities in Q3, 2021, second only to MMR. Hyderabad also followed MMR in the share of new project launches in this quarter. It accounted for 23% of the total new launches.
With robust government policies taking over along with the entry of various private entities, the road connectivity and infrastructural development in Hyderabad has touched new highs. Multiple metro lines are now up and running which has bolstered real estate growth in the city. The new proposed extensions of outer ring road are set to further enhance connectivity within the city.
So, what are homebuyers looking for, and is the residential inventory in the city aligned accordingly? Let’s find out.
Hyderabad Real Estate News
As per Square Yards data, more than three-quarters of the prospective homebuyers showed interest in 2 and 3 BHK units. Half of these online searches were for 2 BHK units. People have come to realise the importance of bigger homes, and a growing need for personal space in the home has given rise to a proactive search for 3 BHK and above units too. More than 45% share of online searches was around larger configuration homes.
As a result of this growing affinity for larger spaces, Hyderabad accounted for more than 25% of the total searches recorded for luxury homes sized above 4000 Sq. Ft. during the Jul-Sep 2021 quarter. This tendency was also reflected in the demand trends witnessed for different property types. For instance, independent homes were the most preferred property type with almost 50% searches while plotted developments were second in line with 22% searches. This shift from apartments to other property types validates the changing buyer dynamics in the city.
What was interesting to note was the fact that the residential inventory available in Q3, 2021 was completely in alignment with the demand registered.
More than half of the total share of the available inventory was for 2 BHK units and the supply of 3 BHK units was recorded at 25%. These properties, as pointed in the report by Square Yards, were largely concentrated in West and East Zones.
While 45% of the online searches were registered for independent houses, the ongoing supply – at 64% – was more for plotted developments. One thing which is pretty clear with this data is that people showed interest in constructing and designing their homes from the scratch instead of investing in flats, apartments, and builder floors. Maximum plotted developments were supplied in the outskirts of the city in the online listings for Q3, 2021. South Hyderabad localities such as Shadnagar, Kadthal, and Yacharam etc. were the top preferences for plotted developments.
New Project Launches
Given the fast-paced infrastructural growth and mushrooming up of other such lucrative amenities, Hyderabad stood second as far as adding new residential projects was concerned. Out of the total new project launches in the city, West Hyderabad zone accounted for almost 60% of the total new project launches in the city.
This, however, was almost a 30% fall in the share of new project launches in the Western precinct as compared to the previous quarter. Q2, 2021 had seen a concentration of 90% new project launches in the zone, as compared to 60% in Q3. This time around, North Hyderabad contributed 35% of the total new project launches in the city. It is safe to say that West and North zones in Hyderabad have become the hubs for residential and commercial developments.
