Hyderabad: New residential launches in Hyderabad have grown by a massive 481 percent Quarter-on-Quarter (QoQ) in Q4 2020 leading to a 4 percent Year-on-Year (YoY) growth in the total H2 2020 launches.
Launches in Hyderabad took a significant hit in Q2 and Q3 2020, as they recorded only 42 percent and 37 percent launches respectively, of the 2019 quarterly average. By Q4 2020, with sales also picking up momentum, launches revived, shows Knight Frank’s latest research report.
Hyderabad’s residential market launches stood at 8,404 home units in H2 2020 and 12,826 home units in the year 2020. The city recorded sales of 5,260 home units in H2 2020 and 10,042 home units in the year 2020.
Residential home sales in Hyderabad were recorded at 5,260 units in H2 2020. In Q4 2020, sales jumped up by 127 percent as compared to Q3 2020, according to Knight Frank.
The share of Rs sub-50 lakh ticket size sales in total H2 2020 sales increased from 15 percent in H2 2019 to 24 percent in H2 2020. This increase indicates the growth of the affordable housing segment in a market where the buyer preference has always been stronger for the Rs 50 lakh-Rs 1 crore segment.
Supported by festive season promotions, multi-decade low home loan interest rates, softer residential prices, and higher-income savings, Q4 2020 sales grew by 127 percent QoQ.
The strong growth momentum of residential prices during earlier years was stalled this year by the impact of the pandemic on both sales and launches. As a result, the weighted average prices at the city level have receded to the 2019 levels with a near 0 percent YoY increase in 2020.
In terms of geography, West Hyderabad continued to account for the highest share in launches, as well as sales, owing to its proximity to the Information Technology (IT) business districts. Further, HMR-Central micro-market launches grew by 397 percent YoY in 2020, whereas its 2020 sales were relatively less affected at 19 percent YoY.
Samson Arthur, Branch Director-Hyderabad, Knight Frank India said, “Recognised amongst the most affordable metropolitan cities, Hyderabad’s residential market saw a remarkable turnaround in H2 of the pandemic intervened the year of 2020. Ready inventory moved briskly encouraging developers to announce new launches which met with a very encouraging response.”
“Pandemic also gave an opportunity for citizens to appreciate the city’s focus on infrastructure, social order, and ease of living. With work opportunities remaining positive the home segment of Hyderabad’s realty promises to be equally attractive for both end-users and developers,” he added.
The spurt in launches coupled with the relatively muted sales volume has caused the unsold inventory numbers to rise to 7,180 units in H2 2020 and the quarters to sell (QTS) to scale up to 2.2 quarters in H2 2020.