Prices of residential spaces reach peak in Hyderabad and Bangalore

Hyderabad: The residential space in Hyderabad have shown a four per cent year-on-year (YoY) increase in prices, ranking the city highest among the top eight markets in India. The city has recorded home sales of 1,609 units in just Q3 (third quarter) 2020, according to a report released on Thursday by real estate consultancy firm Frank Knight.

Housing launches in the city took place in Manikonda, Kompally, Shamirpet, Narsingi, Quthbullapur, etc. 1,234 units were launched during this quarter. 

In the sales of office spaces, rental values have increased by 2%. Hyderabad witnessed office space transactions of 0.5 million square feet in this quarter. 

Sales as well as supply remained extremely low in the period between April and June, due to the nationwide lockdown. The Frank Knight report thus compared the third quarter of this year with that of quarters from 2019.

As cities remained under lockdown for most periods of Q2 2020 (April-June) due to the pandemic, both sales and supply volumes saw record low levels in this quarter. Thus, to gauge the market changes of Q3 2020 compared to a regular period, the report compared Q3 2020 performance to those during quarters of 2019 (pre-Covid levels).

The total residential sales in the top eight markets under review during Q3 2020 reached 54 per cent of 2019’s quarterly average. Similarly, residential launches in Q3 2020 reached 56 per cent of the 2019 quarterly average. Mumbai, Bengaluru and NCR accounted for 56 per cent of quarterly sales volume during Q3 2020 compared to 62 per cent in 2019, primarily due to a fall in Bengaluru’s share in total sales for the same period. Kolkata was the only market that exceeded the quarterly average of 2019 in both parameters, with sales and new launches increasing to 137 per cent and 139 per cent respectively, compared to pre-Covid levels.

Shishir Baijal, chairman and MD of Knight Frank India told the New Indian Express, “Developers have been focusing on liquidating inventory and homebuyers are inclined to purchase ready assets, which has translated into reduced unsold inventory levels in this quarter.”