Positive trends seen in Hyderabad real estate market with more launches

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Hyderabad is leading other major metros in India with regard to real estate markets. The city is witnessing positive trends in its real estate market after a prolonged slump. Hyderabad is seeing a strong recovery and several new home launches are taking place in the city. New home launches have in fact come down across India to the tune of 12% for the fourth quarter in 2017 and the growth rate in Hyderabad has been more than 100% on a quarter-on-quarter basis. The realty market here looks really promising from a future perspective according to experts.

Sales volumes of real estate have already started increasing over the last three months. There are more bookings being witnessed for new homes which is highly encouraging as well. Real estate developers are stating that homebuyers are taking delivery of properties around 6 months in advance. The stocked inventory, especially in western Hyderabad is really good as per experts. There are several ongoing projects in the city as well. Absorption rates have dipped marginally on a year-on-year basis by 8% which shows how well Hyderabad is doing in comparison to other major real estate markets in India.

There are various factors which impact sales volumes as per experts. As a result, variations in market trends can be seen in almost every quarter. Yearly sales figures offer the most accurate picture as per experts. There are some delays linked to obtaining government and other official approvals which can lead to delays in executing projects. The recession after the market boom also offered learning experiences to Hyderabad’s real estate developers and bankers alike. Real estate developers are steadily avoiding the blocking of money in order to avoid the interest burden.

The Weighted Average Price for Hyderabad stands at Rs. 3, 892 per sq. ft. approximately and this is a clear indicator of how most unsold realty units fall in the mid-range and affordable housing categories. The flurry of new launches have caused upward movements in the quarter and this should continue over the next few months. There has been an increase in overall commercial activity in the Hitech City belt and this should lead to healthy demand in North-West Hyderabad as per experts.

2018 should witness the real estate sector stabilizing in India and buyers and developers will steadily adjust to changing regulatory reforms as per market experts. RERA has also been spurring developers to finish projects and the sentiments of buyers have also improved lately.

Unsold housing stock has come down by 3% in Hyderabad on a quarter-on-quarter basis and 10% on a year-on-year basis. The fourth quarter of 2017 had 1, 656 housing units launched across the affordable, mid-range and premium market categories. According to the new regulations, projects that have launched post 1st January, 2017 will naturally require RERA registration which involves massive documentation and a longer period of time. This is the predominant concern for real estate developers and once these aspects are ironed out, things will become smoother for the sector both in Hyderabad and the rest of India in general.

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