Hyderabad is definitely one of the exceptions when you perceive the real estate sector in India closely. Hyderabad is one of those cities which has always been growing in terms of demand for real estate, particularly in the residential segment. This has remained steady in the past when other metropolitan cities were grappling with major issues like unsold inventory, sky-high property prices and lower levels of demand. However, the real estate sector in India has received a major boost of late due to pro-active policy measures like RERA and GST which have ushered in higher transparency, accountability and discipline into this sector.
Buyer sentiments have improved hugely and the emphasis placed by the Government on affordable housing has given a major fillip to the industry in general. Things have improved and are steadily improving even further as far as Indian real estate is concerned. Hyderabad, however, continues to witness a real estate boom propelled by several factors including its relatively lower costs of living and housing, IT and ITeS boom, growth in commercial and other business sectors and of course, the Hyderabad Metro and other infrastructural initiatives.
Political stability and the Government’s emphasis on building physical and civic infrastructure throughout the city has contributed to the growth of several areas, particularly on the outskirts of the city. The residential realty market in the top 7 Indian cities witnessed 6% of growth for April 2018 and 15, 200 units were added overall to housing inventory according to reports. More than 1, 000 units were added to housing supply in Hyderabad which indicates robust growth of the real estate market here.
The supply addition of new housing stock was the highest in the NCR (National Capital Region) and Hyderabad took the second position. Affordable housing was the segment where the highest number of new residential units was added as per reports. 43% of total supply added in April 2018 across the top 7 Indian cities was under the affordable housing category. 33% of supply additions were in the mid-range category while 11% of new units were priced between Rs. 80 lakh and Rs. 1.5 crore. 13% of new housing supply was priced above Rs. 1.5 crore according to reports.
There is growing demand amongst buyers for affordable units and many real estate developers are now concentrating on affordable housing and mid-range projects. The weighted average property prices for new units have also corrected in case of Pune, NCR and Hyderabad among other cities, thereby spurring demand. The average sizes of residential units is also coming down in a bid to meet the criteria for affordable housing as per reports.
