Residential real estate ‘demand’ & ‘quality of life’ in Hyderabad on the upswing- a perspective for 3BHK home-buyers in Hyderabad
As per a report published by Knight Frank property consultants, based on studies conducted in 8 major cities in India- there has been more than 90% growth in the residential home demand in Q3 of 2021 (July, August, September) all over India, compared to the same time in the previous year.
Hyderabad is no exception to this positive surge in demand of homes!
In Hyderabad, the residential unit sales in July, August, September 2021, according to the report, has gone over THREE times what it was the year before (2020). The sale of gated community apartment numbers in Hyderabad stood at 6000 residential units in the Q3 of 2021. The numbers could be much more than these if we were to include the ‘standalone building’ segment of residential apartments (5-storey apartments built on small-sized plots in Hyderabad- as per GHMC norms).
Consequently, Q4 of 2021- October, November, and December 2021 looks very promising for home-buyers in Hyderabad. With vaccinations at their peak in Telangana, the overall homebuyer sentiment is upbeat.
Reasons for Hyderabad residential markets looking upbeat
Some of the reasons why Hyderabad real estate will continue to thrive are:
- The likelihood of a complete lockdown is very low in the current situation with COVID vaccinations happening at a terrific speed in Telangana
- The prices of Hyderabad real estate for the middle and upper-middle class segment range between Rs 4000 to Rs 7500 per sft. This is very reasonable as compared to other cities like Bengaluru, Mumbai, Pune, or the National Capital Region
- Another reason is the preference for upgrading to LARGER and BIGGER SPACES for family purposes. The home buyer segment is looking at 3BHK segment far more favourably. He home buyers are preferring better quality inside the house, and seeking amenities that are relevant. This has further boosted demand, and builders are designing post=pandemic, more efficient and better designed homes to cater to needs like work-from-home, study-from-home, entertainment-at-home and fitness-at-home SPACES
- The demand for ‘exclusive’ low-density spaces has gone up in Hyderabad, with preference being given to 3BHK apartments in:
- Regular apartments in cluster-formation (where you have 2, 3, 4 or more apartments on a single floor), and
- ‘One apartment per floor’ residences being offered in apartment format, where the buyer owns the entire floor to themselves. These units are more premium, because they are built on smaller plots (400 to 700 square yards), and have all the latest amenities including elevator access and gen-set provision
- Another reason is the ‘work from home’ culture, and the corporate structure preferring to allow employees to work from home.
- This allows better designs which support the function
- Plus, the home buyers are now willing to move away from job hubs like Gachiblowli to places like Kompally, Tarnaka, Alwal, Sainikpuri and Yapral
- Preference for cleaner and greener locations is even more. This is where locations like Sainikpuri and Yapral score high. In these localities, the extent of green cover is remarkably high. The greenery and fresh air-supply will continue to remain this way due to the presence of Armed Forces installations with bountiful of trees
- The inventory overhang in Hyderabad is the lowest in the country. Overhang is about the ‘time required to sell unsold inventory of homes’. For Hyderabad this was just 25 months as of Quarter 1 of 2021. This means the unsold property with the builders is the lowest, and there is scope for new projects to come-up. The demand and supply is well balanced
- The builders in Hyderabad are responding to home buyer needs. This is happening on both budget, and preferences on better spaces (SPACIOUSNESS).
- As of Q1 of 2021, nearly 50% of residential units are priced at over 75 lakh range, which means more of 3BHK, spacious units
- About 40% of residential units are in the Rs 40 lakh to 75 lakh range
- The pro-business state policies, and dependency on tertiary sector (services like IT enabled services, IT etc.) for employment will only make sure that the demand for residential sector goes-up
- Hyderabad happens to be the only city in India to record quarterly sales of residential units going-up. Plus, the prices of property have appreciated by 5% all around
All these are positive indicators for the residential real estate markets in Hyderabad.
The quality of living Hyderabad offers is remarkable. This is why the city is on the growth path to being the top residential market, with consistently rising demand from discerning home buyers.
These indicators also point towards being a preferred market for the investors, NRIs, and Non-local Indians, who love to call Hyderabad their home.
The quality of life and social infrastructure that the city of Hyderabad offers remains unspeakably beautiful, dependable, and enjoyable!
To quote Mehmet Murat ildan- “You cannot have a quality life without having the concept of quality of life!”