‘Hyderabad housing Market clocked highest quarter-on-quarter rise of 38%’

‘Hyderabad housing Market clocked highest quarter-on-quarter rise of 38%’

Roger Pettingell Sarasota Real Estate

Employment opportunities created by IT sector and startups drive Hyderabad’s residential market

HYDERABAD: At a time when rising input costs and interest rates have led to quarter-on-quarter (QoQ) growth in housing sales in most top cities of the country for the second quarter of 2022, Hyderabad has clocked the highest QoQ growth of 38%, as per real estate consulting firm JLL.
Hyderabad was followed by Delhi NCR with a 17% QoQ growth in sales at 10,076 units (8,633 units in Q1 2022), Pune with 7% growth to 8,704 units (8,098), and Mumbai and Kolkata with a 4% rise each at 12,165 units (11,648) and 3,947 (3,806) respectively. Markets such as Bengaluru and Chennai registered a decline of 55% from 12,202 units (11,250) and 8% from 3,450 (1,553 units), respectively.
Of the around 53,232 homes sold in the top seven cities in Q2 2022, Hyderabad accounted for over 10% at 5,537 units as compared to 4,012 units sold in Q1 of 2022, JLL said in its `Q2 Residential Market Update’.
According to JLL, the increase in input costs and the strong demand have caused an appreciation in residential prices with capital values showing a 3-7% YoY increase in all cities except Hyderabad which showed resilience by clocking double-digit price growth over the same period.
“Developers have partially passed on the input cost increases which are now reflected in the current residential prices. New launches have also entered the market at higher prices. With interest rates in an upcycle, costs for owning a house are likely to increase further. This may cause some short-term deflation in demand but with changing dynamics around home ownership and with interest rates still on the lower side, residential demand is likely to remain on its growth trajectory,” said Dr Samantak Das, chief economist & head of research & REIS, India, JLL.
Pointing out that employment opportunities created by the IT sector and startups are driving Hyderabad’s residential market, Das said that investments being made by the state government in city has opened new residential clusters in the north and east parts of the city. Meanwhile, realty consultancy firm Knight Frank said that in terms of housing property registrations, Hyderabad’s outlook remained positive for Q2 2022.

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