Homebuyer’s Guide To Hyderabad

In the past two years of Covid-induced disruptions, one of the housing markets that has remained in the forefront as resilient and flexible is Hyderabad.

With the pandemic-induced constraints constantly reshaping the homeowner’s expectations, developers also appeared keen to launch new residential projects to cater to the changing housing demand. Reinforcing this, Square Yards research revealed that about 22 per cent of the total new residential units launched in the top six cities during Q4, 2021 were in Hyderabad. More than half of these were concentrated in the western precinct.

The peripheral locations of the city, which were once preferred only by a handful of buyers, are now converted into zones that attract high demand from home buyers as well as the interest of major developers.

Moreover, more and more developers are now expanding their offerings in the peripheries as the demand for spacious homes is largely concentrated in the peripheral locations namely Tellapur, Bachupally in the West Zone, and Attapur in the south zone. Nearly 75 per cent demand was noted for properties priced less than Rs 60 lakh. Peripheries thus justify both the budget requirements as well as the need for spacious homes.

However, according to data, there is an imbalance in demand-supply in different budget segments. For instance, 24 per cent of the demand is for Rs 60-100 lakh segment, but the supply is far behind at 17 per cent. Similarly, as much as one-fourth of the demand is for for price points in the Rs1-3 crore range but the supply is just 7 per cent.

Property searches for independent homes had shot up to almost 50 per cent of the total demand in Q4, 2021. However, the supply is far behind at a mere 7 per cent.

Interestingly, another segment where there is a big mismatch in supply and demand is plots. Demand is low at 16 per cent but supply is very high at 60 per cent.

The maximum demand is for 2BHK and 3BHK house configurations, which together form more than 80 per cent of the overall demand. In this segment, the supply matches the demand at about 90 per cent.

It is strongly believed that growing infrastructure and employment opportunities in the city are also some of the reasons which push the housing demand by instilling strong confidence among buyers.

However, with the recent rise in home prices and appreciation in the average prices per sq. ft., the city can also be expected to soon turn into one of the most expensive housing markets, where spacious independent homes are going to be in abundance.