Hyderabad, apparently, tops the list when it comes to new residential launches in 2021 among the top cities of India. The city has had 26.1 percent of the launches in the country, followed by Pune with 17.6%, Bengaluru with 16.4%, and Mumbai with 16.1 percent.
In the fourth quarter of 2021 (October to December), Hyderabad saw the launch of 7651 units, where the pan-India number stood at 45,383 units accounting for 17 percent, according to JLL research. In 2020, Hyderabad recorded a launch of 23,692 units, followed by Bengaluru with 23,120 units, Mumbai with 19,502 units, and Pune with 12,644 units. Bengaluru was the only city that saw de-growth in 2021 compared to launches in 2020, while the remaining six cities of India, including Hyderabad, saw year-on-year growth.
Recovery of the economy has instilled confidence among the developers as they strategically launched projects across cities to tap into the demand recovery. Also, if the third wave would be contained, then there is expected to be further momentum in the residential segment in the year 2022. Discounts and incentives by developers' reduction of home loan rates to a decadal low are supposed to augur well for the residential sector.
However, it's not just new launches; Hyderabad has also maintained growth momentum in residential sales. The city's sales jumped to 15,787 units in 2021 from 9926 in 2020, showing a sharp recovery year on year.
According to JLL, it is also the best time to buy a property due to better affordability as well. They feel that with increased demand momentum, limited inventory in select segments, and rising input costs are expected to result in a price increase of 5-7 percent in select micro residential markets. However, the good news is that the overall level will remain mostly stable despite the input cost increase as the developers will focus on the sales and completion of projects.