Hyderabad has witnessed relatively low levels of unsold inventory over the last few months as a result of quality supply by credible developers.

It has been a good past year for Hyderabad real estate players. Not only have developers managed to complete most of the projects on time, but also it topped the charts as far as the net absorption is concerned.

Pankaj Kapoor, Managing Director, Liases Foras, a real estate rating agency, explains that with the impact of policy initiatives like demonetisation, RERA and GST subsiding, new launches and sales have grown. "The central bank has been quite proactive in taking steps to solve the liquidity crisis, which have led to a lot of developers finishing their projects resulting in new supply in the market. Due to these developments, cities like Hyderabad have benefitted the most," he says.

Corporates calling

Comparatively lower prices and quality construction have also turned Hyderabad into the most promising real estate destination. Hyderabad accounted for nearly half of the new completions in Q3 2019. According to a JLL report, the city topped the chart in net absorption and new completions, registering a 36 percent and 44 percent market share respectively, on the two parameters during the July-September quarter. The study reveals that there is a strong demand from large corporates coupled with an attractive residential market, which is propelling the demand in Hyderabad.

Anuj Puri, Chairman, ANAROCK Property Consultants, explained that the government gave real estate major shots in the arm in the first leg of its second term in office. "The central government also took a major step towards safeguarding homebuyers' interests by banning the once-popular but often misleading subvention schemes. Also, there were concentrated efforts towards the creation of an Alternative Investment Fund (AIF) of Rs 25,000 crore for last-mile funding of stalled housing projects," Puri said.

Growth ahead

The city saw a net absorption of nearly 10 million sqft in the first nine months of 2019 and about 4.1 million sqft in the third quarter, which registered an over two-fold jump from 1.7 million sqft recorded last year. On the residential front, it has emerged as the market with least delayed or stalled projects with a mere 0.5 percent of the total 4.54 lakh such units in the top cities.

The city's unsold inventory in Q3 2019 was 23,890 units, which were around five percent lower than the previous quarter. West Hyderabad witnessed a majority of the sales as it is well connected to the IT hubs and commercial parks in the city. The city has also surpassed Bengaluru in the last two-quarters and is now leading in terms of sales of residential property.

The central bank has been proactive in solving the liquidity crisis, which has led to a lot of developers finishing their projects, thus resulting in new supply in the market. Due to these developments, cities like Hyderabad have benefitted the most. Pankaj Kapoor, MD - Liases Foras, real estate rating firm.