Hyderabad showed the most growth, among eight major residential markets in the country, in terms of new home sales and launches during January-June 2021.
While the home sales increased 150%, compared to the same period last year, to 11,974 units, new launches at 16,712 units were 278% higher, according to the latest report of property consultancy Knight Frank India.
The increase – from the 4,782 units sold and 4,422 units new launched in H1 2020 -- can be attributed partly to a pronounced base effect, the report ‘India Real Estate January – June 2021’ said.
It is also due to the IT industry, a major employer in the city, not impacted by the pandemic. “With no threat of income disruption, affordable prices and low home loan rates, the city posted its highest ever home sales in a half-yearly period during H1 2021,” the report launched on Thursday by the consultancy said. Besides Hyderabad, the report covered the markets of National Capital Region (NCR), Mumbai, Pune, Chennai, Bengaluru, Ahmedabad and Kolkata.
However, launches and sales declined sequentially in Q2 2021 on account of the COVID-induced lockdowns. Unsold inventory levels grew to 11,918 units in H1 2021 “largely contributed by new launches,” the report said.
Branch Director – Hyderabad of Knight Frank India Samson Arthur said Hyderabad continues to be a promising residential destination for end users and investors alike on the back of the governments thrust on improving the infrastructure.
According to the report, developers responded to the growing residential demand in Hyderabad. In terms of micro markets, West Hyderabad continued to account for the largest share in new launches. Around 63% of the total sales were concentrated in the western region of the city. One of the trends the report sought to highlight were a substantial pick up in demand for larger homes over the past few months on account of the pandemic-induced work from home trend. Consequently, share of homes priced ₹1-2 crore in the total launched units grew from 18% or 1,544 units in H2 2020 to 27% or 4,444 units in H1 2021.
