Hyderabad sees highest housing price hike in Q3
The prices of residential units across top 8 cities in India continue to grow at 10% YoY in Q3 2023 led by positive buying sentiment, says Housing Price-Tracker Report
Hyderabad residential market has emerged as the cent YoY upswing in the prices during July-September quarter (Q3) of 2023, marking the highest surge among the top eight cities in India, says a report. With an average price of Rs 11,040 per sq ft, the city is set to catalyse future residential developments, as per the report.
Central Hyderabad, being an established sub-market, recently witnessed new property launches at a market premium, resulting in a notable surge in overall property prices. Moreover, the imminent development of Metro Phase-2 and the Airport Metro line promises to further elevate the city’s residential landscape and connecting major office hubs to the airport.
This is also likely to boost residential development in Northwest and Southwest sub-markets going ahead. Northwest sub-market held about 74 per cent of the unsold inventory led by significant new launches in Kukatpally and Nanakramaguda, says Housing Price-Tracker Report jointly prepared by Credai-Colliers-Liases Foras.
According to it, the housing prices across the top eight cities in India increased incessantly at 10 per cent YoY during Q3 2023 led by steady & sturdy housing demand amid positive home buyer sentiment and stable interest rates. All eight major cities experienced a notable increase in housing prices, with Hyderabad leading the pack, closely followed by Bengaluru.
The housing market is likely to further firm up by the end of 2023, driven by likely strong momentum during the festive season fueled by positive market synergies in the form of attractive incentives, lucrative schemes for the homebuyers, and new launches in an already upbeat market.
Boman Irani, President of Credai National, said: “Homebuyer sentiments have been quite positive in 2023, playing a huge factor in not just the volume of housing registrations, but also indirectly having a cascading impact on increasing housing prices. Sustainable development and green housing expected to lead the next growth phase in the industry.”
“On the back of a stabilised economy, job security, stable lending environment, we project this sales momentum to continue. Developers have also been at the forefront to ensure that it remains a conducive buying environment, facilitating enhanced transparency and providing financial incentives that added to the overall appeal of purchasing homes,” he said.
Alongside increasing sales, the top housing markets of Bengaluru, Hyderabad, Delhi NCR, and MMR saw a surge in new property launches, with a notable emphasis on the mid and luxury segments. The mid-segment accounted for the largest share of unsold units at 32%, closely trailed by the affordable segment.
However, there was a 1 per cent quarterly drop in unsold inventory, led by favorable market dynamics as of end of September 2023. With increased demand for spacious dwellings, developers continued to launch high-end projects, which pushed housing prices for under-construction units northward in markets like Kolkata, Hyderabad, Delhi NCR, and Bengaluru.
“The strong 10 per cent annual increase in housing prices across India’s top eight cities during the third quarter of 2023 signifies a competitive and flourishing housing market. Fueled by strong homebuyer sentiments and positive market fundamentals, Hyderabad and Bengaluru witnessed the highest price rise at 18-19 per cent in Q3,” says Badal Yagnik, CEO, Colliers India.
Tracing the strong streak of sales momentum with industry consensus, sales estimates already reaching closer to 2022 levels, 2023 is expected to close stronger than 2022. Furthermore, developers are increasingly targeting sustainable projects, with homebuyers’ inclination towards eco-friendly living, affirming a green future for the country,” he adds.
“Last year, the housing market grew by 35 per cent. The sales in the first nine months of the current year grew further by 11 per cent from the previous year. With a 10 per cent increase in the prices, the housing market is at its most productive phase in India; sales, new supply, and prices are witnessing healthy growth,” said Pankaj Kapoor, MD, Liases Foras.
