Hyderabad sees an uptick in new home launches in Q1, 2022

HYDERABAD: In what is being seen as a positive sign for the realty sector, Hyderabad has witnessed a number of new home launches in Q1 2022. During the last quarter, Hyderabad has recorded 8,591 new launches. What is significant is that the city has accounted for 25 percent of new home launches during Q1 of the total launches in the top seven cities which accounted for 33,953 new launches.

According to JLL’s residential market update, new launches rose by 65 per cent q-o-q in Q1 2022 in Hyderabad as many prominent developers expanded their footprint in the western suburbs. Apartment sales in the city have witnessed a 11 per cent dip q-o-q as the steady increase in capital values had caused a dampening effect on sales. During Q1, housing sales stood at 3,709 units.

The report said that capital values inched up by 3.1 per cent q-o-q and 11 per cent y-o-y in the city during the quarter. An increase in registration charges has also contributed to this trend. Given this scenario, developers were careful in pushing prices upwards again rapidly. “In fact, they are likely to be more measured in their approach towards future price hikes as a more stable price environment will bring back buyers in greater numbers. As a result, demand is expected to get better in the coming quarters.

Affordable and mid-segment projects are expected to drive sales momentum in the city, especially in the northern and western sub-markets,” the report said. Residential prices rose by an average of 2-4 per cent q-o-q in select micro-markets across all the top seven cities. A strong demand momentum and the rise in input costs were key factors for the increase in their prices.

The increase in input costs and the sunset on waivers are likely to push up the prices and the impact will be felt by home buyers. One of the most significant trends observed in the quarter was the rise in sales for bigger ticket sizes with apartments priced over `1 crore recording an 83 per cent y-o-y growth in sales. The Rs 50 lakh - Rs 1 crore price category still dominated with a 56 per cent share of the quarterly sales in Q1.