IT growth drives property launches to all-time high in Hyderabad

HYDERABAD: Amid concerns of a slowdown in the real estate sector - due to inflation and rise in interest rates - residential projects continue to flood the Hyderabad market, particularly western corridor. Market estimates suggest 60,000 units will go onto the floors by end of 2022 - highest since 2018. Developers attribute this to the growth of the IT sector.
"In recent times, the sector has witnessed an uptick in workforce and earnings. Since this segment isn't sensitive to marginal rise in home loan interest rates, it is unlikely to dent the city's prospects," said Nanda Kishore, managing director of Ramky Estates. Also, given affordability factor despite increase in construction cost, sales are unlikely to be hit, developers believe.

"But, going forward, buyers will be more particular about the project they sign up for - its quality, location, reputation. That's because they now have more options to choose from," said Mahabir Agarwall, chairman, Koncept Ambience.
According to Veera Babu, managing director of Cushman & Wakefield, Hyderabad's residential market has been on an uptrend since 2016-17 and was one of the most active markets even during the pandemic. "Though we have witnessed a softening in housing demand over the last three-four months, the situation should improve in the second half of the year," he said.