Property rates in most of the realty markets have remained subdued for the past 3 years. During this period, the number of real estate units sold has decreased significantly. Not only the commercial real estate, but the residential real estate has also bore the brunt of the reforms set up by the government. However, the real estate market in Hyderabad has remained unaffected throughout this phase.
The sector has witnessed a decent increase in the property rates and the number of units sold in the city, as per experts at Modi Builders, one of the top real estate builders in Hyderabad. Rising prices, however, is not the only aspect where Hyderabad is defying the usual trend. While buyers are looking for small-sized-affordable properties in most of the markets, Hyderabad’s real estate market is witnessing a surge in the sale of luxury homes.
During the second quarter, homes priced at more than Rs 1 crore have been the center of attraction, accounting for 32 per cent of the new launches. While 59 per cent of the new units were concentrated in the western localities of the city such as Gachibowli, Manikonda, Bachupally and Miyapur.
An annual comparison also shows a 49 per cent increase in the sales during Q2. During this quarter, Hyderabad also showed the lowest inventory overhang. According to the experts at Modi Builders, it would take only 22 months for real estate developers in Hyderabad to sell off their existing housing stocks (38,119 units) in the city.
Hyderabad west is the biggest contributor, when it comes to inventory. Around 55 per cent of the city’s total inventory stock is lying in the west. As per the report, about 74,000 units are expected to be delivered by 2020. With a decent growth rate and stable environment for further investment, the luxury real estate market in Hyderabad is undoubtedly going in the right direction.