The impact of Covid-19 on housing launches in India is glaring in 2020, but Hyderabad refuses to give up. While the rest of the country’s cities faced the brunt of growing negative economic sentiment, Hyderabad has withstood the test of time, showed resilience, and emerged victoriously. The numbers say it all.
India’s top seven cities cumulatively saw around 1.27,970 new housing units launched throughout 2020, up from 2.36,570 in 2019, recording a massive 46% drop. In contrast, in Hyderabad, new launches increased by as much as 42% in 2020 compared to 2019.
Hyderabad is the only city in the top seven cities that experienced growth in 2020, while the rest showed a contraction. The neighbouring Bangalore showed a decline of 46%.
Anarock’s research shows that new launches in Hyderabad stood at around 21,110 units in 2020, up from 14,840 units last year. The city accounted for 16.5% of new housing launches in India in 2020. Interestingly, Hyderabad, the Mumbai Metropolitan Region (MMR), Pune and Bangalore together accounted for 76% of the new housing addition in the country.
In keeping with the annual trend, Hyderabad also outperformed the country’s other six major cities in terms of housing supply during the fourth quarter (Q4) of 2020 by adding 12,820 units, followed by the MMR with over 11,910 new units.
About 52,820 units were launched in the fourth quarter of 2020 in the top seven cities of India (including Hyderabad) compared to 51,850 units last year, a marginal increase of 2%. Hyderabad accounted for nearly 25% of new housing launches nationwide during the period.
According to Anuj Puri, president of Anarock Property Consultants, “2020 was an unprecedented year due to Covid-19, which caused all-round upheaval.” While the rest of the country struggled throughout the year, Hyderabad has consistently maintained its growth trajectory.
The city dominated new home launches in India during the third quarter (Q3) of 2020, contributing to more than 40% of launches in the top seven cities, according to JLL research. The city saw the largest number of new launches in the country’s third-quarter with 5,396 units compared to 5,034 units in the second quarter, posting a seven per cent growth in Covid times. This shows that Hyderabad has maintained its quarter-over-quarter growth momentum in a volatile economic environment.
Showing signs of recovery towards the close of quarters, the top seven cities saw their unsold inventories decrease by 2% over the year – from around 6,48,400 units at the end of 2019 to around 6,38,020 units at the end of 2020. Medium segment (with a price of Rs 40 lakh – Rs 80 lakh) increased by 39% in the fourth quarter of 2020 compared to the same period in 2019, while the affordable supply decreased by 39%.
JLL studies show that southern markets will lead the recovery cycle with other markets on their heels as cities gradually return to “business as usual”.
The future of the residential market and the support of the recovery process in India will depend on the containment of the virus and how the new viral strains are addressed. The year 2021 can unfold in two different ways. If the virus is contained in 2021 and economic activity resumes at full capacity, the affordability of housing is expected to improve in all cities. A broader recovery in the residential market and the likely pace of translation of demand into actual sales volumes will largely depend on the economic environment and prevailing consumer views.
With the constant support of the Government to realty sectors and upcoming Social and Civic infrastructures in the city has raised the demand of residential real estate in the city, during the covid situation Hyderabad civic body has taken the advantage of lockdown and executed their activity to complete major infrastructures development in the city. Many new announcements have been made under GRID policy to diversify the growth of IT Sector and brining out many mega projects and SEZ in the other Region of the city, with these initiatives of the government, builders and developers are taking it as an opportunity to come up with affordable housing projects in upcoming growth locations such as in the north and east of Hyderabad near to ORR.
If you wish to buy affordable Apartments in Hyderabad with maximum facilities at a reasonable price, this is the right time to investigate the Apartments for sale in Hyderabad, in the East and North locations like Bachupally, Mallampet, Gundlapochampally, Kompally, Rampally, Kesara, and many more. Apart from the Apartments, many reputed builders have developed state of an art Luxury Villas in Hyderabad, mostly away from the pollution and rush of the city, keeping in view the elite class buyer’s requirements with top-notch amenities.