All-Time High Property Launches in Hyderabad Backed By IT Sector Growth
Since the beginning of this year, inflation has caused a sharp hike in costs of necessary commodities like fuel and an increase in interest rates for loans. This had become a cause of concern for the real-estate market in Hyderabad as rising costs could eventually lead to an economic slowdown and loss of market momentum. On the contrary, residential projects have continued to flood Hyderabad’s real-estate market – especially along the wester corridor, where the city’s IT sector is centred.
According to realty market estimates, 60,000 units will be launched by the end of the year i.e., 31st December 2022, which will the be highest number of yearly launches in the last 5 years. Real-estate industry experts & developers attribute the high number of launches to the rapid growth of the IT (Information Technology) sector. More than 28,000 units were launched in the first 5 months of 2022 alone, flying past the 50% mark of the total launches in 2021 in just 5 months. Areas in the western corridor of Hyderabad accounted for almost 60% of the entire city’s new launches.
In 2018, nearly 14,000 units were launches amounting to approximates 23 million sq. ft., during 2019, 16,500 units were launched (estimated) adding 30 million sq. ft. to the market. The numbers were similar to 2019 for 2020 with an average drop of 12% in total launches YoY owing to the Covid-19 pandemic. In 2021, the market bounced back really well and nearly 70 million sq. ft. was added as more than 45,000 units went on floors during the year. So far, till May 2022, 28,000 units have already been launched which is already higher than the 50% figure for 2021. For 2022, projections say the total number of units launched could reach 60,000, adding up to 95 million sq. ft.
MD of Ramky Estates – Nanda Kishore said “In recent times, the sector has witnessed an uptick in workforce & earnings. Since this segment isn’t sensitive to marginal rise in home loan interest rates, it is unlikely to dent the city’s prospects.” Industry experts & developers say that the affordability factor of properties despite an increase in construction costs will ensure that sales numbers don’t take a big hit.
Another realty expert said “But, going forward, buyers will be more particular about the project they sign up for – its quality, location, reputation. That’s because they now have more options to choose from.” The Director of Cushman & Wakefield (a real-estate consultancy firm), Veera Babu says Hyderabad’s residential market has been on an uptrend since FY17 and remained one of the most active markets during the 2 pandemic affected years of 2020 & 2021. Hyderabad’s housing market has witnessed a drop in housing demand over the last 3-4 months but that could increase during the second half of 2022.