Hyderabad has been thriving as one of the most vibrant real estate markets in the country. For numerous years, the city’s real estate outperformed the national average. The availability of affordable housing, a booming tech sector, and state initiatives were among the causes for the same. Even when other cities suffered losses, the real estate market in Hyderabad witnessed a high.
The real estate market here is credited for being disciplined, which, along with robust infrastructural development across the city, has enabled the sector to maintain an equilibrium of supply and demand. Despite the pandemic, the city’s real estate market remained quite active last year and was among all top cities – both in terms of sales and new launches. Many realtors and developers profited handsomely from this growth. However, the tendency is now shifting.
Despite numbers claiming that the realty sector picked up after the COVID-19 pandemic, the unsold residential inventory in Hyderabad has been more than 50% due to a significant number of under-construction projects. Let’s together understand what is causing this rise in unsold properties in Hyderabad.
The rise in unsold real estate inventory:
The sale of apartments in Hyderabad has declined in the previous few months. Experts suggest that there are a startling 1 lakh unsold flats in Hyderabad. One of the reasons is multi-story buildings with a large inventory and little demand. The rise in costs is another key concern, as many purchasers are reconsidering their purchases. According to many media sources, there are nearly 80,000+ unsold flats in Hyderabad. This substantial unsold housing stock has made Hyderabad amongst the top southern cities, including Bengaluru and Chennai, with an increasing unsold real estate inventory.
Factors responsible for the rise in unsold real estate inventory:
City-based realtors point out that the cost of construction, registration charges and land rates have gone up in the past year, thus increasing the cost of under-construction apartments and to-be-built houses. Many houses which were built are left unoccupied due to high property rates. The cost of flats has increased marginally and, in turn, made them unaffordable. High inflation and the work-from-home culture have, in a way, aided this decline.
At the same time, land prices in and around Hyderabad have skyrocketed in the post-pandemic era. Rising steel and cement prices, labour expenses, and other inputs have, in turn, increased the cost of goods.
A study has revealed the unsold inventory rose by 55% Y-o-Y as the city saw a spurt in launches over the last few months. A large proportion of the unsold units are currently under construction.
A resilient market:
Despite the unsold inventory, the city has seen resilient demand for property, which is led by employees in the tech sector. The overall housing prices in Hyderabad, therefore, rose by 8% Y-o-Y. The spike in property prices is predicted to have little impact on home-buyers sentiments as their outlook towards the overall economic scenario and income stability have improved in the post-pandemic phase.
Among the main micro markets that have seen a surge in demand for residential units in Hyderabad are Ghatkesar, Malkajgiri, Medchal, Banjara Hills, Gachibowli, Kondapur, Kukatpally, Miyapur, Nanakramguda, Boduppal, Karmanghat, Kothapet, Maheshwaram, Puppalguda, Shaikpet and Shamshabad. The demand and the growth prospects in the vicinities of these regions have made these pockets the hotspots for residential markets today.
With TMR Group, own a piece of land in the growth hotspots of Maheshwaram and Chegunta. These blockbuster plots offer profitable returns on investment, with several development opportunities being proposed and developed around them. To know more about TMR Group and our plots, visit https://www.tmrinfra.com/.
References and sources:
https://www.indiaherald.com/Breaking/Read/994496131/One-Lakh-Unsold-Flats-in-Hyderabad
https://timesproperty.com/news/post/unsold-housing-inventory-hyderabad-down-27-months-blid2110
