Demand for residential realty in Hyderabad up during Jan-March

Hyderabad: Magicbricks' PropIndex for the period of January-March 2020 period reported that amidst the Covid-19 scare, the demand for residential real estate in Hyderabad grew by 8.1 per cent, which was higher than the national average of 5.3 per cent.

The consistently performing commercial sector in Hyderabad had a positive demand on the residential real estate. Strong connectivity through the Outer Ring Road and the metro rail network have also fuelled real estate development in prime areas like Gachibowli and Kukatpally.

Sudhir Pai, CEO, Magicbricks, said, "The State government is taking stringent measures to contain the Covid-19 outbreak, but the long-term impact on property market is uncertain, and yet to be assessed. But it seems that the consumer interest has not tapered off. There is a pent-up demand for ready-to-move in properties as our data suggests that the 80 per cent of searches are happening in this segment and the rest for under construction"

Magicbricks' PropIndex suggests that developers increasingly focused on peripheral locations like Kompally, Adibatla, Tellapur, and Patancheru, as ORR connects them with IT hubs, international airport, and emerging employment destinations. The demand for new projects by developers with good track record continued to support prices, though the market favoured the ready-to-occupy segment, where prices have climbed a phenomenal 71 per cent in the last five years.

Despite this price rise, Hyderabad continues to offer a sizable but shrinking affordable housing market in the less than Rs 5,000 per sft segment. Consumers continued to look for affordability in Q1 2020, with more than half of the buyers looking for 2 BHK options. Less than 20 per cent of the city's consumer demand is towards properties costing more than Rs 6, 000 per sft, making the city non conducive for luxury project developments.

Due to the proximity of main employment hubs, easy access for ORR and metro trains connectivity, Miyapur, Gachibowli, Kukatpally, Hitech City and Kondapur continued to be the top five micro-markets.