Hyderabad Is Second Largest Real Estate Hub

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Introduction

Hyderabad has seen a remarkable transformation in its real estate landscape. 2023 to become the second-largest real estate hub in India. The city saw a significant growth of 49% year-on-year in home sales.

Hyderabad Second Largest Real Estate Hub

Table of Contents

Hyderabad has established itself as the second-largest real estate hub in India, according to a report released by PropTiger. The report, titled ‘Real Insight Residential – Annual Round-up 2023 (January-December)’, highlights that Hyderabad recorded an impressive 49% year-on-year growth in housing sales. This growth is a testament to the city’s thriving economy and its potential for real estate investment.

Growth Trajectory

If you’re considering investing in the real estate market, Hyderabad is a destination that shouldn’t be overlooked. The report, which analyzed data from eight major cities in India, found Ahmedabad to be the leading city with a growth rate of 51%. Hyderabad 49%, Bangalore 44%, Pune 33%, Mumbai 29%, Kolkata 16%, Delhi NCR 11%, and Chennai 5%. The country’s overall growth in home sales was 33%.

Factors Influencing Growth

In Hyderabad, more than half of the total sales took place in the last two quarters of 2023. There were 14,191 sales in Q3 and 20,491 sales in Q4. The number of new home launches in the city declined with 76,819 launches in 2023, reflecting a 7% decrease compared to 82,801 homes launched in 2022.

Example

  • Pent-up demand: In the post-pandemic era, unlimited demand has been unleashed. Driving sales to unprecedented levels.
  • RBI’s rate pause: The Reserve Bank of India’s decision to pause rate hikes in April 2023 has played a key role in maintaining consumer confidence amid economic uncertainty.
  • Infrastructure Development: Continuous improvements in infrastructure and connectivity have made Hyderabad an attractive destination for home buyers and investors.

While the sales figures paint a positive picture, the report also presented a decline in the number of new home entries in Hyderabad. With 76,819 launches in 2023, there was a 7% decrease compared to 82,801 homes launched in 2022.

This type of change in dynamics indicates a strategic revaluation by developers. Perhaps in response to market trends and buyer preferences. The Telangana government has suspended approvals for new projects that are to start in 2024.

“Despite initial challenges such as rising interest rates, rising input costs, and rising real estate prices amid global uncertainties, the industry has demonstrated remarkable resilience. Post-pandemic pent-up demand has acted as a key driver, driving the property market to unprecedented levels. The Reserve Bank of India’s decision to hold off on rate hikes until April 2023 has played a key role in boosting buyer confidence,” said Mr. Housing.com, Makaan.com and PropTiger.com Group CFO Vikas Wadhavan also said.

Growth in Various Sectors of the Economy

Shishir Baijal, Chairman and Managing Director, of Knight Frank India, said: “The RBI’s prudent management of inflationary conditions has inspired confidence in the country’s economic environment. Proactive measures by the central bank have effectively managed inflation rates, contributing to a stable financial outlook. It also boosted investor sentiment and encouraged growth in various sectors of the economy.

The middle and premium segments of the residential market are performing consistently. This trend is expected to continue as demand for luxury properties remains strong. Investors are looking to invest in this lucrative market segment. However, a 250 bps increase in policy rates reduced affordability across markets by an average of 2.5 per cent. This led to reduced demand for housing and a slowdown in the overall real estate market.

Conclusion

It is worth noting that Hyderabad has now secured its position as the second-largest real estate hub in India, with an impressive 49% YoY rise in housing sales. However, Ahmedabad still holds the lead with an even higher growth rate of 51%. For more detailed information, be sure to check out Openplot.

Also read: Hyderabad Real Estate Comes to Fall Standstill: Why?

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