According to Knight Frank India’s latest report – India Real Estate: H1 2022, Hyderabad’s residential market increased by 23 percent to 14,693 housing units in January-June (H1) of 2022, recording the highest number of sales for the first half of 2011. The strong IT workforce played an important role in increasing the homeowner base that was largely unaffected by the pandemic and following disruptions in various industries.
Incidentally, Hyderabad hasn’t seen a single year of price decline since H1, 2013. The same is true of its performance in H1 2022 when the residential prices increased by 4 percent, showcasing the market resilience. The media has extensively covered stories saying low home loan interest rates and affordability have been the primary drivers of growth during the period.
New home launches increased by 28 percent to 21,356 housing units in H1, 2022. West Hyderabad continued to dominate the city’s residential space, making up a good 62 percent of total sales during H1, 2022. The strong demand has remained unaffected.
Another important point to note is that home-buyers in Hyderabad want to live nearer to the commercial core of the city, and 62 percent of the total units were launched in places like Kokapet, Peerancheru, Gopanapalle, and Nallagandla. The cost varied between Rs 50 lakh and Rs 1 crore.
While Hyderabad is no longer a cheap destination, it continues to remain a desirable destination for end consumers and investors. Though there are concerns about overbuilding and overburdening of infrastructure consequent to easing of FSI limitations, market sentiment in the residential segment remains positive, and the mid-segment is driving sales.