New high: Hyderabad sees 14.6K house sales in H1 2022

HYDERABAD: The buoyancy in the economy is working like a tailwind for Hyderabad’s residential market. It has increased by 23 per cent YoY to 14,693 housing units in H1 2022 recording the highest sales levels since H1 2011.

A key role was played by Hyderabad’s homeowner base, which comprises a strong IT workforce that largely remained unaffected by pandemic-related interruptions. New home launches increased by 28 per cent YoY to 21,356 housing units in H1 2022.

As per Knight Frank’s half-year (H1) report on the residential market, West Hyderabad continued to dominate the city’s residential space, accounting for a market share of 62 per cent of the total sales during H1 2022. The city witnessed major developments in West Hyderabad with 62 percent of the total units launched in places like Kokapet, Peerancheru, Gopanapalli, and Nallagandla homebuyers preferring to be close to the commercial core of the city.

Developers like Aparna Constructions and Estates, Myscape Properties, High Rise Construction and Maram Infra Projects were among the developers active in West Hyderabad with homebuyers preferring to be close to the office hubs of HiTec City, Gachibowli and Nanakramguda.

The report highlighted that of the eight markets under consideration, Hyderabad is the only one that has not had a single year of price fall since H1 2013. Despite the pandemic-related interruptions in 2020, it was also the only market that had price stability, demonstrating the underlying resilience of its home market.

Samson Arthur, Senior Branch Director - Hyderabad at Knight Frank India said: “Despite concerns about overbuilding and the resultant overburdening of infrastructure consequent to easing of FSI limitations, sentiment in the residential market remains positive with mid-segment projects expected to drive sales momentum in the city.”

Prices rise by 4.2%
While it is no longer one of the cheapest marketplaces in the country, Hyderabad remains a desirable destination for consumers and more recently, investors. In the first half of 2022, residential prices climbed 4.2 per cent year over year. The residential demand is firmly anchored in ready-to-move-in homes, resulting in a decrease in the average age of inventory in Hyderabad from 9.1 quarters in H1 2021 to 5.6 quarters in H1 2022.