Minor slowdown in Hyderabad home sales, experts say trend temporary

HYDERABAD: The city’s rapid realty growth hit a minor bump this year, with residential property sales dropping between January and September. While collectively, homes across India’s seven top cities saw a 16% rise in takers, the figures plummeted by a marginal 2% in Hyderabad, show Anarock records. The last three months – July to September – was particularly bad as the city recorded a decline of 31% in purchases.

The total value of homes sold in Hyderabad, in the first nine months, stood at ?9,400 crore. Reason: slowdown in launch of new projects coupled with builders’ attempts at cautiously clearing previous unsold stock, say experts.

“In fact, new residential launches during this period saw a fall of nearly 17% — from 13,360 units in the first three quarters of 2018 to 11,050 units in the corresponding period of 2019,” said Satish Vadaga, city head (Hyderabad) of Anarock Property Consultants. He added: “The unsold stock, too, declined by nearly 12% to 23,890 units as on Q3 2019. By end of Q3, 2018, the figure was 27,010.”

Incidentally, a similar trend was witnessed in Bengaluru, despite the city registering sales worth Rs 28,160 crore this year – only behind the Mumbai Metropolitan Region where the figure touched a staggering Rs 62,970 crore up to September 2019.

Analysts claim that this dip, across both the prominent cities of south India, will not last for too long. In Hyderabad, with micro markets such as Gachibowli , Kondapur, Miyapur , LB Nagar, Adibatla and Narsingi, among others, witnessing significant traction, the numbers are certain to go northward soon, they say.

“The city is seeing decent activity in the commercial segment, which in all probabilities will have a positive spill-over impact on Hyderabad’s residential market as well,” Vadaga said. According to him, certain proactive measures taken by the state government – including formation of new municipal corporations, improvement of ORR, announcement of Pharma City and Yadadri Temple City etc – will also affect the realty sector positively.