Housing prices in Hyderabad up 7% in Q4 2021

Hyderabad: Housing prices in Hyderabad have jumped 7 per cent during the last quarter of the calendar year 2021, shows Real Insight Residential – Annual Round-up 2021, a quarterly analysis of India's eight prime residential market by online real estate company PropTiger.com. This growth in annual prices of new apartments could primarily be attributed to the spike in rates of construction materials after the coronavirus pandemic outbreak in early 2020 due to supply side constraints.

With the increase, average per square foot rate of apartment and village- based housing projects in the capital city now stand at Rs 5,900-6,100. Along with Ahmedabad, Hyderabad recorded the highest price rally during the last quarter of 2021, a period that covers the festive season in India. After the appreciation in average prices, Hyderabad has become the second most expensive housing market covered in the analysis after Mumbai Metropolitan Region. Demand for housing continues to be robust in the southern city, with home sales numbers for the full year 2021 recording a 36 per cent jump over the same period in 2020. As against 16,400 units in 2020, a total of 22,239 homes were sold in Hyderabad's housing market in 2021.

During 2021, 3BHK homes remained the preferred configuration, claiming 48 per cent share in sales figures. New supply in Hyderabad also grew two-fold over the previous year- from 22,940 units in 2020 to 48,566 in 2021. Majority of the new supply during the year was concentrated in micro-markets where 36 per cent of units launched were in the over Rs 1 crore price bracket, said the report.

"The recently concluded festive season in 2021 has had a visible impact on demand and supply, resulting in positive changes for the Hyderabad housing market. As the economy settles in, providing buyers with higher job security, this recovery process in real estate might gather more steam in 2022," said Rajan Sood, Business Head, PropTiger.com.