Hyderabad logs most home launches in India with 16,840 units

Leaving behind other major metros in the country, Hyderabad recorded the highest-ever new launches at 16,840 units with a 24% quarter-on-quarter jump. Sales are likely to remain strong in the short to medium term, led by projects from established developers. According to JLL, while western suburbs contributed 76% to new launches, northern suburbs accounted for 16%. Residential sales in the city have witnessed a significant growth due to sustained demand from end users. With regard to sales, about 6,990 residential units were sold in Hyderabad during Q3.

Mid and upper-mid-segment projects got maximum traction in the western and northern suburbs submarkets. Capital values recorded a marginal growth of 1.9% q-o-q and 11% y-o-y in the city during the quarter. While launches are expected to soften in the medium term, the city is likely to witness a robust demand with marginal growth in the capital values across the city.

Most of the launches during the quarter were witnessed in Hyderabad (27%) followed by Bengaluru (23%) and Mumbai (21%). The launches are expected to accelerate in the upcoming festive quarter as established developers are launching projects in both prime locations as well as emerging residential corridors.

The report said that Hyderabad witnessed the maximum appreciation in prices to the tune of 11% on a yearly basis while prices in Pune increased by around 3%. Also, the increase in the repo rate has resulted in an increase in mortgage rates. However, the interest rate after this hike would be still below what the homebuyers had to pay eight to nine years back.

The trend of launching plotted developments and independent floors is expected to continue with buyer preferences aligned towards such products while developers get the advantages of faster execution, delivery and inventory liquidation.

Homebuyers have become more cautious in affecting their home purchase decisions. There is an increased preference and willingness to pay a premium for projects by developers with an established track record. Consolidation will continue to take place in the residential sector as developers who are unable to deliver as per the deadlines would either look for exits or partner with established players, the report added.