Despite the Indian property market stalling, Hyderabad is bucking the trend with property prices in the City of Nizams increasing by 22 per cent in the past three years.
While all of the other key property markets in India have not shown significant improvement in the past three years. Hyderabad alone has remained an exception to that rule.
A year-on-year comparison of the City of Nizams shows rates have increased 11 per cent in the second quarter of the financial year 2018-19 when compared to the same quarter the previous year.
But it is not just with rising prices that Hyderabad is bucking the Indian property market trend. While other markets see buyers looking for small-sized-affordable properties, in Hyderabad both local buyers and overseas property investors are looking for more luxury.
Units priced above Rs 1 crore contributed the most to new launch and home sales numbers during the second quarter, with new property launches rising by 159 per cent annually, albeit from a low base.
Thirty-two per cent of the total new launches of Quarter 2 were priced over Rs 1 crore, and in the past three years, the share of properties rated over Rs 1 crore has been consistently rising.
Fifty-nine per cent of all the launches were concentrated in the western localities of the city such as Gachibowli, Manikonda, Bachupally and Miyapur.
In terms of sales numbers, too, the western localities made the biggest contribution, by making 55 per cent share to the overall sales numbers.
Properties are moving fast as well, with a very low overhang. it would take only 22 months for real estate developers in Hyderabad to sell off the existing housing stock (38,119 units) in the city, the lowest for any city, at the current sales velocity. Comparatively, it would take 47 months for developers in Ahmedabad to achieve that feat.
The West of Hyderabad remains the most popular for local buyers and overseas property investors, and this is being catered for with 56 per cent of the city’s total inventory stock in localities lying in the west.
The latest data shows that this will continue, with nearly 74,000 units expected to be delivered by 2020.
It seems Hyderabad is leading the way for Indian property.