A grand performance: Hyderabad’s real estate sector impresses in 2021

Hyderabad’s real estate sector is all set to end 2021 on a high. In a year marred by the second wave of the COVID-19 pandemic and the subsequent market slowdown, Hyderabad has displayed nothing but positives. Despite initial fears of the realty sector slipping into the red, it held steady before soaring upwards.

The resilience shown by the city’s realty sector has given it prominence not only in India but the Asia-Pacific region as well. Annual residential property registration for the January-November 2021 period stands at 21,988 units – a 16 percent year-on-year (YoY) growth. Hyderabad district alone witnessed a 58 percent YoY in sales and its share of the total sales climbed to 45 percent during the same period.

Preferences in the real estate sector

Affordability still remains a key factor for most home buyers. Most new purchases tend to fall below the 50 lakh category. The bracket between 60-70 lakh is a close second, followed by the extravagant 90 lakhs and above mansions. Along with affordability, floor plans and room layouts influence consumer preferences. 2BHK flats in Hyderabad by developers like Modi Builders, Aparna Infra, and Prestige Group were the most desirable, accounting for 57 percent of the total supply.

The numbers also reflect this trend. Out of the total sales in the January-November period, 66 percent has been taken up by the under 50 lakh bracket. Accordingly, the sale of homes in the 25-50 lakh category improved to 34 percent in 2021.

The pandemic-induced lifestyle changes meant that most individuals suddenly realized the numerous benefits of owning a home. The desire for bigger spaces and more rooms meant that the traditional notion of homes was forgotten. Homes had become a part of the office space too. Larger and spacious flats in Kukatpally, Gachibowli, Kompally, and Bachupally sold like hot cakes as professionals employed in the surrounding commercial hubs splurged on bigger and better homes.

Future Forecasts

The year-end has always seen slower sales in the Hyderabad realty market. Prospective homeowners prefer to wait it out and invest in the coming year instead. The first half of every year always sees a flurry of activity in Hyderabad’s real estate market. That being said, the traditionally sluggish September-November period recorded an above-average growth this year.

If the present trend continues, the new year will bring in better prospects for the city’s real estate market. Interest rates are expected to remain unchanged as the new year comes around. This bodes well for the realty sector as a whole. What Hyderabad makes of it will make for an interesting watch.