In the last two years of pandemic-induced disruptions, one of the housing markets that has remained at the forefront as flexible and resilient is Hyderabad.
With the COVID-induced constraints constantly reshaping the homeowner's expectations, developers are keen to launch new residential projects to cater to the changing housing demand. Square Yards research revealed that about 22% of the total new residential units launched in the country's top six cities during Q4, 2021 were in Hyderabad. More than half of these were concentrated in the western corridor.
The peripheral locations of the city, which were once preferred only by a handful of buyers, are now converted into zones that attract high demand from home buyers and the interest of major developers.
Moreover, more developers are expanding their offerings in the peripheries as the demand for spacious homes is largely concentrated in the peripheral locations, namely Bachupally in the West Zone, Tellapur, and Attapur in the south zone. Nearly 75% of demand was noted for properties priced less than Rs 60 lakh.
However, according to data, there is an imbalance in demand and supply in different budget segments. For instance, 24% of the demand is for the Rs 60-100 lakh segment, but the supply is far behind 17%. Similarly, as much as one-fourth of the demand is for price points in the Rs 1-3 crore range, the supply is just 7%.In Q4 2021, property searches for independent homes had shot up to almost 50% of the total demand. The supply, however, is far behind at a mere 7%.
Interestingly, the demand for plots is low at 16%, but supply is very high at 60%.
The maximum demand is for 3BHK and 2BHK house configurations, forming over 80% of the overall demand. The supply matches the demand at about 90% in this segment.
It is strongly believed that growing employment opportunities in the city and improving infrastructure are also some of the reasons which hike the housing demand by instilling strong confidence among buyers.
However, with the recent rise in home prices and appreciation in the average prices per sq. ft., Hyderabad is also expected to soon turn into one of the most expensive housing markets, where spacious independent homes will be in abundance.