Hyderabad surpassed pre-covid sales volumesof Q1 2020 by a strong margin of 23%: JLL Hyderabad

Jll

April 21, 2021: New launches in Q1 2021 (Jan-March, 2021) decreased marginally by 17% Q-o-Q. Nevertheless, the city has still recorded a strong volume of quarterly launche swhich continue to remain at levels higher than those witnessed in the first three quarters of 2020. With new launches concentrated in the Kondapur, Miyapurand Nallagandla regions, Western suburbs continued to account for a majority share in new launches. This was followed by Northern suburbs which contributed 43% to total launches in the city. New launches in the affordable segment (<INR 5 million) increased significantly, accounting for 48% of the total new launches during the quarter.


The positive traction witnessed in sales in H2 2020 continued in the first quarter of this year. Sales of residential unitsrecorded a growth of 4%. But sales volume in the city is yet to reach the peaklevels witnessed in 2019. As the city has limited inventory in theready-to-move-in category, home buyers have shown interest in recently launched projects by prominent developers. Along with prominent locations ad joining IT hubs in Western suburbs, Kompally and Bachupally in the Northern suburbs have emerged as new destinations for home buyers due to improvement in infrastructure and connectivity to the established IT hubs in the city.


“Improving levels of demand, along with low inventory in ready to move in projects have kept prices stablein the city. With sales expected to improve further on return to normalcy,capital values improved marginally in the Prime Secondary, Eastern and Northernsuburbs submarkets in the city,” Sandip Patnaik, MD & head Telangana andAndhra Pradesh, JLL.Residential salesrevive across IndiaResidential sales in Q1 (Jan-March) 2021 recovered tomore than 90% of the volumes witnessed in Q1 2020 (pre-Covid) across the topseven cities. The cities including Chennai, Hyderabad, Kolkata, and Pune surpassed the sales volumes of Q1 2020. Overall sales increased by 17% on asequential basis. Importantly, sales either improved or stayed at similarlevels (in Q1 2021 when compared to Q4 2020) in majority of the residentialmarkets under consideration. Mumbai has consistently been the largestcontributor to sales in the last four quarters. In Q1 2021, Mumbai accountedfor 23% of the sales, followed by Delhi NCR with a share of 21%.However, Kolkata sawthe maximum increase in sales activity in Q1 2021 in comparison to the fourthquarter of 2020. In Kolkata, the offtake of residential units in Q1 2021 wasdriven by South Suburbs (Joka, Kasba, Behala, Jadavpur, Tollygunje) and EastSuburbs (EM Bypass, Rajarhat, Topsia) with a combined contribution of more than70%.
“The sustained growthin sales presents clear signs of demand and buyer confidence coming back to themarket. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and  freebies from developers and government incentives such as the reduction of stamp duty in states like Maharashtra and Karnataka (for affordable housing).

The ease of lockdown restrictions and the commencement of the vaccination drive have further aided in bringing buyersback to the market,” said Dr. SamantakDas, Chief Economist and Head Research & REIS, JLL. “However, the rising concerns of the rapid spread of the pandemic has compelled several state government to lay and enforce stringent lockdown like restrictions. While thisis essential to break the chain, it is likely to impact real estate business inthe next few months.  At the same time,the rapid progress in the rollout of vaccines paired with the ongoing restrictions provides us elbowroom to believe that this is a short-term blipand the market will be back on track sooner than later,” he added.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s