The residential market in Hyderabad in 2021 is expected to fare well amid the high consumer demand, budding growth corridors and new policies by the Government such as Look East and Growth in Dispersion (GRID).
Hyderabad’s residential market has always witnessed higher demand than other major cities in India. The strong fundamentals and consumer demographics have invariably corroborated the city's realty market in tough times and the scenario would remain so in 2021. The value will be a critical driving force and the prices are expected to appreciate because the city offers affordability without compromising on quality and amenities. Although the COVID-19 pandemic caused a temporary nationwide slowdown, the residential real estate demand in Hyderabad has already regained its pre-pandemic momentum.
The pandemic has changed the way consumers approach buying real estate in Hyderabad. Homebuyers are much more discerning and demanding higher value from the property, including amenities, connectivity, and social infrastructure. Consequently, gated communities and integrated townships in Hyderabad have been steadily gaining interest from home buyers. These communities offer access to a multitude of amenities, security, property maintenance and eco-friendliness at an affordable price.
Post the COVID-19, there has been increased shift towards health, quality of life, and accessibility. Gated communities in Hyderabad continue to see demand as they provide a solution to several urbanisation challenges, especially during periods of limited mobility. As remote working becomes the norm, home buyers opt for well-equipped projects with spacious areas for home offices and dedicated business centres.
In addition to providing daily essentials, reputed residential real estate developers in Hyderabad invest in world-class amenities and recreational areas, including clubhouses, fitness centres, swimming pools, spas, playgrounds and sports facilities. They are even integrating smart automation systems for added convenience and comfort.
Hyderabad home buyers’ preference for under-construction properties will also be a crucial growth driver in 2021, with 3 BHK units being the most popular configuration. The western and northern suburbs of the city will continue to witness the majority of the new launches. However, there will be a higher demand for premium properties from reputed developers with minimal execution risk and good track record.
Many growth corridors in Hyderabad are gaining interest from home buyers for their location, connectivity and investment potential. These growth corridors have buffered the city from the nationwide slowdown by providing a way to meet demand without unrealistic price surge. The Outer Ring Road was a significant factor that led to the emergence of these realty corridors that include Nallagandla, Kompally, Tellapur, and Patancheru. These budding areas offer open spaces with natural surroundings and strategic connectivity to industry hubs.
Although western Hyderabad has witnessed the majority of development due to the abundance of commercial hubs, the focus is now shifting to eastern Hyderabad. To balance the city’s commercial infrastructure growth, the Telangana State Government has proposed the concept of Look East and Growth in Dispersion (GRID), under which a new IT corridor would be developed in the eastern part of Hyderabad, including Uppal, Pocharam, Ghatkesar and Sagar Highways. This development will boost residential real estate growth in east Hyderabad in the quarters to come.
The policy reform will also be a solid boost to the residential market in Hyderabad. The Reserve Bank of India’s (RBI) decision to link loan rates with the repo rate will reduce EMIs on consumer home loans, making them cheaper and reducing the debt repayment burden on developers. If these rate cuts are implemented with immediate effect, the low cost of financing will have a positive bearing on housing demand in 2021.
