Hyderabad sees surge in new residential projects in Q3

Hyderabad has witnessed a surge in the launch of new residential projects during the third quarter ended September 2020. The city accounted for over 40 per cent of the overall launches across all seven cities under review, during Q3 2020, according to JLL Research.

Q3 2020 witnessed sales outpacing new launches as unsold inventory across the seven cities decreased marginally from 4,59,378 to 4,57,427 units. Mumbai and Delhi NCR together account for more than 50 per cent of the unsold stock which are at various stages of construction. Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata are the top seven cities.

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With new launches concentrated in the Kondapur, Hafeezpet and Manikonda regions, Western Suburbs continued to account for a majority share in new launches. Apart from Western suburbs, L.B. Nagar and Kompally in the Northern and Eastern Suburbs submarkets witnessed an increase in launch activity.

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Most new launches were in the 3 BHK configuration and development activity was concentrated in the ₹75 lakh to ₹1 crore price segment, which contributed 59 per cent of the total new launches during the quarter. Total sales touched 2,122 units in Q3, up 76 per cent, the JLL report stated.

Renewed NRI interest

The country’s residential market was more active in Q3 2020 with sales increasing by 34 per cent versus Q2 2020. Mumbai accounted for 29 per cent of the total sales in the quarter, while 22 per cent of sales was contributed by Delhi NCR. Growth in sales activity was also driven by stronger demand in Chennai, Hyderabad and Pune. Residential market activity is also being supported by renewed interest from NRIs in Q3 2020, resulting in more pent-up demand in the market and increased enquiries received by developers.

“Low inventory levels, especially in ‘ready to move in’ projects have provided developers with the lever to maintain prices. With sales expected to improve further on return to normalcy, capital values have remained stable across all the submarkets in the city,” said Sandip Patnaik , Managing Director, Hyderabad, JLL India.

“The further easing of lockdown restrictions and the upcoming festive season might help in bringing buyers back to the market. An assessment of years to sell reveals that the expected time to liquidate stock has increased from 3.6 years in Q2 2020 to four years in Q3 2020. While the residential space remains unpredictable, favourable supply dynamics could deliver potential upside for both homebuyers and developers in the medium term,” said Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.