Hyderabad: Demand for residential properties in Hyderabad is expected to increase over the next few months even as it faced a slow recovery in the months leading up to the pandemic.

With increased demand from younger buyers, a growing sense of home ownership, developer offers and discounts, and a lower interest rate for home loans will propel the demand for residential homes. While apartments will always be the most preferred, experts point out that the new generation of buyers are looking for villas and land with similar weight.

“The Covid-19 has accelerated the trend of young people to buy houses as a refuge and the results are visible in the residential real estate segment of Hyderabad. The IT / ITeS, pharmaceuticals with BFSI and industrial segments were at the origin of the demand for housing in the various sub-segments of the residential asset class. The average age of people investing in real estate is currently 35, which is significantly lower than the trend of recent decades when the demographic of buyers was over 50, ”says a report called Telangana – A State on the Move by Credai. -Anarock.

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The report signals reforms such as demonetization, RERA, GST and IBC altering the residential real estate sector and the last two years before the pandemic saw a near balance in supply and demand. However, after the Covid-19 pandemic, the segment experienced a kind of crisis and a recovery in supply and demand was observed in the last two quarters of 2020.

“The offer was added aggressively as many developers had approvals for projects that had been postponed due to the unprecedented crisis created by the pandemic. The post-pandemic period also saw a pick-up in quarterly demand for residential assets and had reached pre-pandemic levels of 2019. As supply had already picked up, demand is expected to catch up soon. The report says.

He also adds that there is a strong possibility of a short-term trend reversal when demand is likely to exceed supply, leading to a reduction in available stock and creating ground for an upward price revision.

Zonal distribution of supply and demand:

The report shows that the western and northern regions of the city were the most privileged due to the concentration of employment areas. From 2020 to the third quarter of 2021, the western market continued to dominate with 60% share, while the northern region accounts for 34% of supply and demand each.

“It is imperative to decentralize development and move towards other regions. While the physical infrastructure is already established in the eastern and southern regions, certain incentives and the focus by the government will be influential in attracting the interest of buyers, investors and developers. This will help reduce the burden on the western and northern areas of the city, ”the report said.

Budget analysis:

Increasing employment in high income generating sectors like IT / ITeS, BFSI and Pharmaceuticals has resulted in increased demand for housing in the mid-range and high-end segments. Buyers look for properties in the price range of Rs 40 lakh to Rs 80 lakh or are willing to spend between Rs 80 lakh and Rs 1.5 crore. Around 75% of the offer was injected into these segments.

Compared to the last two quarters of 2020, the share of supply of properties below Rs 40 lakh has increased from 27% in the third quarter of 2020 to 11% during the same period in 2021. Meanwhile, the share The supply of properties priced above Rs 1.5 crore and even above Rs 2.5 crore rose from zero in the third quarter of 2020 to 14% in the same quarter in 2021.

For information:

Distribution of supply and demand (between 2020 and nine months of 2021) in Hyderabad

Zone Supply (% share) Demand (% share)

West 62 60

North 34 34

South 2 3

East 2 2

Central 0 1

Evolution of the offer by budget:

Budget Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

Below Rs 40 lakh 27% 15% 5% 4% 11%

Rs 40 L – Rs 80 L 61% 36% 61% 19% 42%

Rs 80 L – Rs 1.5 Cr 12% 47% 28% 63% 35%

Rs 1.5 Cr – Rs 2.5 Cr 0 1% 3% 14% 11%

More than 2.5 Cr 0 1% 3% 0 3%

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