Hyderabad’s Unsold Inventory Surges by 38%: New project launches drive growth

The real estate market in Hyderabad has dealt a severe blow to the dreams of potential homebuyers, as property prices have skyrocketed, reaching an exorbitant average of over Rs 10,000 per square foot. This astronomical surge has rendered housing unaffordable for the average person.

Based on the Housing Price-Tracker provided by the Confederation of Real Estate Developers’ Associations of India (CREDAI), Colliers, and Liases Foras, the first quarter of the year witnessed an average residential property price of Rs 10,410 per square foot in Hyderabad. This staggering figure positions Hyderabad as the second most expensive city in the country, just behind the Mumbai Metropolitan Region (MMR) which boasts an average price of Rs 19,219 per square foot.

In various cities across the country, there has been a notable increase in the introduction of new real estate projects as developers strive to meet the escalating demand. As a result, the overall stock of unsold properties has seen a 12 percent year-on-year rise.

The report further highlights that approximately 95 percent of the unsold units in these prominent cities are still under construction.

Speaking to The Hans India, Sridhar, MD, Aparjitha Constructions said, “Amidst the current market conditions, we have witnessed a notable upward trajectory in property prices.

This trend can be attributed to various factors, including increased construction costs, sustained demand, and evolving market dynamics. As a result, buyers are facing a more competitive landscape.

However, it is crucial to recognize that these price movements reflect the underlying value and desirability of the properties. Our role as realtors is to provide expert guidance and support to potential buyers, helping them navigate the market and find the best possible options within their budget. We understand the concerns regarding affordability, and we continuously strive to explore innovative solutions and negotiate favorable deals for our clients.”

The unsold inventory levels in Hyderabad have experienced a substantial increase of 38 percent compared to the previous year, making it the city with the highest escalation among the top eight cities in India.

This surge in unsold inventory can be primarily attributed to the influx of new project launches, particularly in the northwest and southwest regions of the city, encompassing areas such as Gachibowli, Kondapur, Nanakramguda, and Kokapet.

Despite the rise in unsold inventory, it is noteworthy that housing prices in Hyderabad have consistently displayed an upward trend over the past nine quarters.

This indicates a strong demand and market confidence, even in the face of increased inventory levels. Potential buyers are still actively engaging in the real estate market in Hyderabad, reflecting their continued interest in acquiring properties in this vibrant city.