The city of Hyderabad and its real-estate market have proven to be one of the most resilient markets compared to the top 10 cities in India. The real-estate sector in Hyderabad is almost back to the growth and development displayed in pre-Covid-19 years and it only looks to get better here on out. The real-estate market of Hyderabad is delivering good numbers in both the residential and commercial fronts. Hyderabad had the 2nd most number of project launches in metro cities across India over the last 12-18 months, especially in 2021, which is a testament to the promise the realty market if the city offers and this is one of the key reasons investors are preferring Hyderabad as India’s top real-estate destination.
The commercial front of the real-estate business in Hyderabad also delivered a strong showing in 2021 despite the 2-3 months of lockdown phase from March to June. The demand in the commercial sector has stemmed from growth of IT/ITeS (Information Technology, Information Technology enabled Services), pharmaceutical & research and BFSI (Banking, Financial Services & Insurance) sectors in the city. The growth of these sectors in the city means there was and will be an increased demand for commercial spaces in the city as these sectors continue to grow.
The supply of commercial spaces for companies and offices is expected to fall short of the expected demand in the city despite many MNCs opting for hybrid work models for their employees. A report by the Confederation of Real Estate Developers’ Association of India (CREDAI) Telangana, showed that the supply for commercial spaces in the city rose sharply in 2021 as many projects that had pending approvals got cleared after being postponed in 2020 due the pandemic crisis. The report was published by CREDAI, Telangana at the first Telangana conclave of 2021 held last week.
The CREDAI report also indicated that the demand for apartments, flats, independent houses in the mid-range price bracket of ₹40-80 lakhs was quite high in 2021. The demand for luxury residential units costing between ₹80 lakhs to ₹1.5 crores was also high in 2021, the reasons for the high demand in these price brackets could be due to lack of or shortage of affordable housing projects in the last 24 months. This could spark a new demand for affordable housing projects in Hyderabad, a good demand and supply of affordable housing projects could bode well for the diversification of Hyderabad’s real-estate market and economic scenario.
The government of Telangana is keen to launch new housing schemes and push affordable housing projects to be built in the state. The real-estate sector had also faced major setbacks as did all other markets due to the pandemic getting worse in India, a large number of construction projects were put on hold, many launches postponed and the realty sector came to a standstill for a few months in 2020. Despite all the setbacks, Hyderabad’s real-estate market showcased its resilience as developers resumed operations. A flurry of new launches – in the commercial and residential sectors – were made from Q3 of 2020 till the second wave of the pandemic in 2021.
Post the second-wave of the pandemic this year, the real-estate market has been buzzing with activity as things return to normalcy and there is a retrieval of supply & demand in the city’s real-estate sector. With the discovery of the new Omicron variant of Covid-19, the future looks unpredictable but the real-estate market of Hyderabad has shown it can bounce back from adversity.