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Home buyer sentiments about buying a residential property in Hyderabad post-COVID in 2021

Positive sentiment emerging about buying a property in Hyderabad in 2021

The post-COVID era in Hyderabad brings hope, positivity and readiness for future! New project launches all around Hyderabad are being witnessed which prove that the home buyer sentiment on the upswing. The new launches are visible in all prominent residential property websites like Housing.com, 99acres.com and magicbricks.com among others.

In fact, we can see over 100+ new project launches in the 2bhk and 3 bhk apartments in the affordable as well as luxury segment. Website sqareyards.com alone lists over 123 new launch projects in Hyderabad. There are many more, especially in the standalone building apartment segment, that are not listed in these websites, and these get sold much faster due to their huge locational and price advantage!

The reason behind these launches is demand, and the low unsold inventory from the last year. The Inventory overhang is the lowest in Hyderabad. Inventory overhang is the ‘estimated time’ builders could take to sell their existing ‘unsold stock’.

A survey conducted by Anarock titled ‘CII-ANAROCK COVID 19 Sentiment Survey’ gives positive indicators like: 1) Home buyers now preferring homes in areas that are not too crowded, 2) Young Millennials getting interested in buying a home post-COVID stood at 31%, which is a huge jump from only 17% in the pre-COVID. This means that COVID has gotten the millennials to think about buying their own 2 and 3 bhk apartments in Hyderabad.

In this article, we shall discuss-

Let’s get exploring…

The lockdown brought the entire country to a grinding halt for 8 weeks, however, it did impact real estate industry positively in certain ways. Some home buyers had a new found realization of the importance of owning a home. ‘Work from home’ became the order of the day, and this also gave a fresh new perspectives to the home buyers to own one’s own home. The millennials who were shy to take on the burden of paying monthly equated instalments started thinking seriously about having a roof of their own. Home buyers understood the importance of space to move around, and have larger spaces that allow more leg space, and also better planned ‘work from home’ spaces.

The residential sector was one of the few sectors to crawl back to normalcy once the lockdown was lifted. In fact, Hyderabad witnessed an increasing demand for 2 and 3 bhk apartments since Q3 of 2020. 3BHK apartments have received a special impetus, owing to the need to have bigger, more spacious homes.

While the affordable segment would dominate the scene in Hyderabad, the demand for luxury segment also increased.

Some facts– The global real estate industry mooted to be $10 trillion, the Indian industry also stands at a mammoth $180 billion, and is predicted to grow to $1 trillion over the next ten years. With the real estate sector contributing to approximately 11% of the country’s GDP, 2021 is likely to see a further growth in the Industry.

The signs of this positivity are visible in Hyderabad, considering the number of new launches for residential apartments slated for 2021 in Hyderabad alone. The real estate residential offerings in Hyderabad is dominated by the standalone building apartments, which is a regular feature across the country. Hyderabad will also be seeing a mushrooming of these standalone building apartments by the small segment builders across all the regions of GHMC, Hyderabad.

At the country level, the real estate industry in India got back to about 80% normalcy within 6 months of the lockdown being lifted. In Hyderabad, however, gained almost 100% normalcy by the end of the year 2020.

The new year 2021 brought back greater confidence. With COVID vaccine now being administered, the sentiment is pretty upbeat. One of the main reasons why Hyderabad made a quick bounce back is the extremely low levels of unsold inventory, and a renewed interest of home buyers in owning the roof over their heads. The number of options were limited, and with COVID era in the passing, newer expectations have come into play in 2021.

Besides, Hyderabad had only 4.6% of the total unsold inventory of residential units across the country as of Quarter 3 of 2020. This is good news for having a more buoyant 2021 for the real estate market of Hyderabad. 

Another positive factor is that over 23% of the new launches across 8 major metros (Mumbai, Chennai, Delhi/NCR, Bengaluru, Kolkata) was witnessed in HYDERABAD.

Real-insight-residential-annual-roundup-2020

2. Room for price appreciation- a positive for Hyderabad real estate

Investing in Hyderabad still gives much more room for price appreciation as compared to other cities. This appreciation in price is likely simply because of the affordability of land parcels, and overall cost of construction being lower in Hyderabad compared to other cities. This is why even the facilities and amenities in Hyderabad come at a lesser price without a compromise on quality.

real-insight-q3-2020

The price trend has been visible for the past one decade where the prices of Hyderabad have grown consistently, and yet are lower than other Metro cities like Mumbai or Bengaluru. Even the demand witnessed has been higher.

The rootcause of this positivity is the Government policies and thrust to employment by way of creating a conducive infrastructure for companies to come and set-up their offices and plants in Hyderabad and across Telangana.

The per capita income of Hyderabad is high, and is only going to increase. Despite the Covid-19 factor, the per capita income of Telangana is projected at INR 2.27 lakh, which is a healthy number. With IT sector also growing, the growth of Hyderabad is assured.

Naturally, these Economic indicators has a cascading effect on the real estate sector of Hyderabad.

Consequently, prices of properties and demand for all segments of residential housing are likely to appreciate over the next 5 year horizon.

3. Smart technology making inroads

The thrust on enhanced lifestyle enabled by technology is visible. An enhanced lifestyle for residents is inevitable with modern club-houses that are pandemicready, social-distancing inspired spaces, fitness centres, spas, playgrounds and sports arenas. Smart automation systems are also being integrated increasingly for greater convenience and comfort. The impact of technology to create interactive interfaces between residents and the buildings is going to a big differentiator in the times to come.

home automation

The application of technology will be seen in securing better coordinated and well-managed social distancing norms, superior security systems, technology-enabled ‘advance-booking provisions’ of common areas or facilities (like Gym, club-house, spas etc.) well in advance to avoid unnecessary human interaction, better traffic flow management in common areas/elevators, and better containment & flow of air circulation across the buildings. The buildings will not just be ‘facility and amenities rich’, but will be ‘pandemic ready’ offering safety, clean air, better ventilation, and overall protection from all kinds of microbes, pests and rodents.

Smart transport systems will also be in place to detect free parking spaces, monitor the safety of children at play, and managing the vehicular traffic inside the building complex.

In a nutshell, the hitherto technology-averse real estate sector is now more than ready to use and deploy technology to optimize the resident safety and living experience. The home buyers are also equally receptive and open to seeking these life-saving, protection-related utilities.

4. Areas & localities on the growth path in Hyderabad

With a diverse range of areas satisfying varying home buyer needs, pricing and preferences, the ‘Greater Hyderabad Municipal Corporation’ (GHMC), has segregated Hyderabad into five areas/zones viz. North, South, Central, East and West Hyderabad. Hence, the best area in Hyderabad is the one that makes sense to you!

Depending on the place of work various locations will gain importance. Connectivity is no longer a concern with GHMC going all out to make the traffic woes of Hyderabad go away. With manyfly-overs, underpasses, and metro stations in the offing, connectivity will NOT be an area of concern. This makes al the five regions (West, East, North, South & Central Hyderabad) equally potential for investment purposes.

Hyderabad is no longer a city with a few select posh areas. The spread of employment hubs across Western Hyderabad (Hi-Tech city, Madhapur, Kondapur, Gachibowli area) has seen stupendous growth, and this will continue to grow. There are multiple pockets of prosperity across the city, and each mini-market of these hubs are self-sufficient. The branded shops, healthcare institutions, educational institutions, entertainment options, eateries, cafes, malls and all the facilities are available all over the city. A home buyers does NOT want to travel distances to lead a superior lifestyle.

The West zone of GHMC Hyderabad comprises of  the existing IT hub in and around HITEC city, Gachiibowli, Madhapur, Manikonda and adjoining micro-markets. In the Western zone, areas like Nallagandla and Chandanagar are growing areas owing to their close proximity to the IT corridor. Nearby areas like Lingampally and BHEL Township being preferred by those who like to live closer to the IT and Finance hubs. Manikonda and Kondapur are also turning out to be popular localities.

The East zone includes Uppal, Tarnaka, L.B. Nagar, Pocharam which is again a preferred residential hub. Companies like Infosys located in Pocharam are fuelling growth in this residential area. 

The North Zone of Hyderabad as per GHMC classification comprises of areas like Yapral, Defence colony, Jeedimetla Industrial Zone, Quthbullapur, Malkajgiri, Alwal, Macha Bollarum, and areas adjoining Sainikpuri, Yapral. This area is witnessing tremendous growth because of being a natural and preferred habitat for a comfortable, tranquil living. Adjoining the North zone of Hyderabad, the Secunderabad cantonment in the second largest cantonment board in India with a massive area of approximately 40 square kilometers in its fold.  With connectivity improvements and initiatives like ORR (Outer Ring Road), this area is ideal for those seeking tranquil environments and bigger homes.

The South zone of Hyderabad is a thickly populated area of Hyderabad old city. It comprises of areas around Shamshabad Airport, Budvel, Attapur, and some of these areas have sizeable chuck of land bank for IT hubs and Industrial developments. 

The Central zone comprises of Khairatabad, Somajiguda, Mehdipatnam, and is home to many private sector and commercial offices along with Sanathnagar and Erragadda Industrial Estates.

The IT sector is also not just concentrated in the West zone alone. Professional talent (high skilled people/workers) is spread across the city, hence, companies are comfortable setting-up offices anywhere in Hyderabad. 

In a nutshell, all the areas are closer to their own respective employment hubs. The social infrastructure, transportation and connectivity throughout the city is possible from all the places. Besides, people don’t want to travel long distances, and prefer to flock to their own local hub.  

5. Go green initiatives in construction

Home buyers in Hyderabad are also showing an increasing concern towards environmental responsibility. Plus, environmentally safe homes are equally safer for the residents too. The initiatives include solar panels, rainwater harvesting, waste management and high-efficiency lighting. These also end up becoming easy on the pocket in the long run.

With ‘work from home’ also becoming a reality, people want homes that are efficient on electricity usage, so that electricity bills are low. Huge bills on account of electricity, waste management, water management etc. can be contained effectively with such go-green initiatives.

go green

Green buildings have proven beyond doubt that luxury and environmental sustainability can be synergised to provide benefits. The growing issues of waterscarcity can also be addressed with go-green sanitary ware, bathroom fittings etc. Water for drinking also can be separated from that used in flush tanks or for watering the plants.

Water efficiency, energy efficiency, and lesser dependence on diesel for running heavy duty gen-sets will be a priority in the future.

Builders are also installing electric vehicle charging ports for the residents of the future. By 2030, it is likely that India will have over 30% of vehicles running on electricity. Go-green initiatives are also being applied to waste disposal. 

6. Standalone building apartments being preferred owing to low cost, better location advantages

Post the COVID-19 lockdown, work from home emerged as a big winner and a reality! Both the employers and the employees made work from home a thumping success. With remote working becoming a reality, the craze for being near to offices also got lessened.

Home buyers, especially from sectors which are fine with a work from home arrangement, now know that they can operate even from far flung areas as well. Also, the lockdown brought about the realization that one needs to avoid crowded areas.

standalone building

This means that stand-alone building apartments in residential colonies with independent bungalows are being preferred. Standalone buildings in such colonies provide the ideal combination of a good location, as well as low density living.

Location advantage is the biggest plus with standalone buildings in Hyderabad. Standalone buildings usually come up in well-established and preferred residential localities. This means that you are closer to all the important shops, groceries, educational institutions, shopping hubs, medical facilities, public transport, good connectivity and all other civic amenities.

Post COVID, the standalone buildings will be a great demand in Hyderabad. The advantages of lower pricing, superior location, low-density living, better social infrastructure are very lucrative for a home buyer in Hyderabad.

Even while considering gated community options, home buyers in Hyderabad are able to see the unmatched benefits that a standalone building apartment offers.

7. NRI investments continuing to rise

Even post COVID, Hyderabad is continuing to get the attention by the NRIs. The reason is that every 6 months, you see the face of Hyderabad changing. With social infrastructure improving, the State government’s commitment to superior living, the overall entrepreneurial initiatives to provide for the needs of the citizens, and GHMC being so well engaged in the civic amenities of Hyderabad, the city of Hyderabad outshines itself every quarter.

nri investment

Plus, the increasing strength of Dollar makes investing in Hyderabad all the more lucrative for NRIs. With much lesser money, the NRIs get an International standard of home with much more square foot area at their disposal. Plus, Hyderabad is turning into a happening International city, with all the amenities getting better and better, be it education, healthcare, entertainment, eateries, cafes and shopping. The city is on its way to becoming a global city with global standards.

Needless to say, Hyderabad presents a stupendous investment opportunity, and secure a lucrative pie of this fast growing global destination!

With Indian economy growing at a much faster pace, and Hyderabad as a place promising to give handsome capital gains, the. NRIs find it extremely attractive to invest in the Hyderabad real estate. Even for self-occupation and self-use, or to spend time during holidays, Hyderabad is a great place to live and own a property in!

Conclusion

Overall, Hyderabad real estate is poised to grow in the post-COVID era! The city is resilient, and the civic infrastructure will only get better. With the Telangana State government committed to bringing prosperity to the State, the Economy is on the growth trajectory.

The changes in the attitude of home buyers post COVID, especially millennials, towards owning a home of their own also will give a further boost to the real estate market in Hyderabad!

Read more about How Covid Has Changed Priorities and Expectations of Homebuyers In India

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