Hyderabad- The New supply to drive the residential market of Hyderabad

Hyderabad’s residential real estate market has seen healthy demand momentum in FY21-22 backed by a young IT workforce, growth in income levels, positive consumer sentiments and low home loan rates. Sales in FY21-22 have surpassed the pre-Covid level (FY 19-20) by 17%. A surge of new launches is seen during the last year, 222% growth in new launches on Y-O-Y. Among the top 8 cities, Hyderabad witnessed the highest price appreciation. Price has grown by 9% in FY 21-22 on Y-O-Y. The ongoing work from home practice and rising preference for owned homes among end-users shall help to keep capital values afloat.

FY 21-22 Highlights

In FY21-22, 23.56 thousand units were sold across Hyderabad and 43.29 thousand units were launched. Sales have grown by 48% Y-OY and new supply has more than tripled over the year. Price has appreciated by 9% Y-O-Y. At the end of the quarter unsold stock stands at 68.24 thousand units and months inventory at 35 months.

Annual Sales
1,000 units
1,000 units
1,000 unit
FY 20-21 15.95 48.3813.445,91136
FY 21-22 23.5668.2443.296,41835
Y-O-Y 48%41%222%9%-1 months

IT/Ites hubs and complexes have catalyzed development in the North-West Suburb which recorded the highest sales in FY21-22 followed by South-West Suburb. The most preferred location in North West suburb are Bachupally, Miyapur and Nallagandla, and Kokapet and Manikonda are the most preferred location in South West suburb.

HiTec City continues to pull homebuyers to localities around the tech industry hubs. 89% of the total new supply is located in North-West and South-West Suburbs. Maximum new launches are in the mid and high-end segment. A shift towards high-rise residential projects has been observed.

3BHK typology dominated the market with a 55% market share of the total sales followed by 2BHK, together accounting for 87% of the total market.

61% of the total market is concentrated in INR 40 lac-1 Cr cost bracket, with the highest sales observed in INR 40-60 lac cost range. Bachupally, Kompally and Miyapur in the North West suburb are the top locations in this cost range. 50% of the total market is concentrated in INR 5,000-7,000 PSF saleable price range.

Micro-market classification

Micro-market Location
North East Zone Pocharam, Hubsiguda, Mallapur, Ghatkesar, Sainikpuri, Yapral, Malkajgiri, Alwal
North West Zone
Bachupally, Miyapur, Nallagandla, Kukatpally, Gachibowli, Kondapur, Kompally, Kollur, Osman Nagar, Gopanpally, Hitech City, Patancheru, Nanakram Guda, Shankarpally, Chandanagar, Sanathnagar, Nizampet, Balanagar, Beeramguda, Madhapur, Mokila
South East Zone
Bandlaguda, Uppal, Adibatla, Nagole, Hayathnagar, L.B.Nagar
Central Zone
Somajiguda, Ameerpet, Himayat Nagar