Hyderabad accounts for nearly 40% of residential launches in Q4

Hyderabad: Despite the pandemic, Hyderabad dominated new residential launches in the country accounting for nearly 40 per cent (10,313 units) of the overall launches (26,785 units) during the fourth quarter of 2020. Bengaluru followed with over 16 per cent with 4,335 units.

Hyderabad witnessed a growth in new launches gaining pace in Q4 2020, which increased by 91 per cent to 10,313 units when compared to the previous quarter with 5,396 units. The new launch activity scaled new peaks in 2020, surpassing levels witnessed in the past 4-5 years, according to JLL.

With new launches concentrated in Kondapur, Hafeezpet and Kokapet regions, the western suburbs continued to account for a majority share. In Q4 2020, new launches in the affordable segment (less than Rs 50 lakh) increased, accounting for 31 per cent of the total new launches during the quarter.

The positive traction witnessed in Hyderabad’s residential sales in Q3 of 2020 continued in the last quarter of the year 2020 as well. Sales of residential units recorded a sequential growth of 68 per cent to 3,570 units in the fourth quarter from 2,122 units in the third quarter.

“The city has limited ready-to-move in inventory in the prominent submarkets. Therefore, recently launched projects by prominent developers and projects due for completion in next 6-9 months witnessed significant traction from prospective homebuyers. Locations like Kondapur, Kokapet, Hafeezpet and Narsingi in the western suburbs submarket attracted homebuyers because of their proximity to office hubs,” said Sandip Patnaik, MD and head, Telangana and Andhra Pradesh, JLL.

“With infrastructure augmentation resulting in better connectivity to the established IT hubs in the city, eastern and northern suburbs have emerged as new destinations for homebuyers,” he added.

Low inventory levels, especially in ready-to-move in projects have provided developers with the lever to hold on to the prices. With sales expected to improve further on return to normalcy, capital values improved marginally in the eastern suburbs and northern suburb (Kompally, Bachupally) submarkets in the city.