Hyderabad
Hyderabad: Apart from significantly high prices in Hyderabad, the report concludes that the level of overhang for Hyderabad, relative to other metros, is quite low. The level of overhang for Hyderabad was recorded to be 19 months which is higher than the average of 14 months for the other 6 major cities as per Anarock. This report reiterates that while there has been large volumes of stock developed in cities in the branded housing segment in the past, it has not been absorbed. Therefore, the focus has now shifted to affordable housing due to the under ‘housed’ and demand opportunities available in these segments. This has been the lowest level of overhang recorded in the last ten years across the other metros, while the eastern region is still above the average.
Chennai comes second with an overhang of 17 months behind Hyderabad, while Delhi NCR and Kolkata had 16 months waiting time. In terms of the least waiting time, across 9 months of 2024 Hyundai recorded an overhang of 8 months which is the least.
Slowdowns Due to New Sales in 2024
Anarock states that in the first 3 quarters national regulator stepped in to the mix adding additional complications to getting approvals making in the coming quarter further weaker than Q1 2023 which had no such issues. The headwinds are provided by project timelines that were delayed because of framework delays in the first half of the year caused by state elections in the latter half.
The report further outlines that the eleven top ranked developers intended to introduce roughly 253 million sq. ft. of new supply across the most developed cities by the beginning of FY25. Only 23% of this intended supply which was almost 57 million square feet was actually made available during H1 FY25 because of election disturbances.
Good Construction Outlook Offered For 2025
On the other hand, although some of these residential schemes will be postponed, Anarock sees a healthy pipeline for new residential launches in the forthcoming quarters. It is anticipated that there will be a considerable amount of housing supply that will be released onto the market in 2025 from the listed developers who had been impeded by elections.
As pointed out by Dr. Upper mentioned in the beginning, during the last two years, Bangalore has outperformed all cities in terms of stock absorption, reducing the stock available to six months. Hyderabad, on the other hand, has recorded a decrease of two months across the same period but with an encouraging new demand supply.”
He added, “Of the total planned supply announced earlier this fiscal year, only 23% could be launched in the first half of FY25 owing to the delays in project approvals on account of the national and state elections. But with these hurdles out of the way, we forecast many fresh launches by developers in coming quarters.”
Real Estate Momentum in Hyderabad
The residential real estate market of Hyderabad continues to be of primary interest because of the consistent growth in new supply coming in. Even though its inventory overhang is considerably worse than other markets, the outlook is set for explosive expansion as launch volumes increase even further in 2025. With improving absorption rates and robust supply available, Hyderabad is bound to be one of the leading cities in the residential real estate verticle in India.