Hyderabad realty has been outperforming for several years. Affordable housing was one of the primary reasons that made the real estate market in Hyderabad booming all these years. Even when other cities were struggling, Hyderabad realty sector was in a sweet spot. Cashing in on the trend, many realtors made huge monies during this period. But the trend is changing. Rise in housing prices, steep inflation and work-from-home culture has resulted in slowing down in the sales of apartments.
For the past few months, the apartment sales in Hyderabad are witnessing a plunge. The multi-storied buildings with vast inventory and less demand is one of the reasons whereas the rise in prices is another major concern as many homebuyers are having second thoughts on purchasing properties.
It is buzzed that a staggering 1 lakh unsold flats are in Hyderabad, according to several media reports. This is due to the growing inventory. The rates of the flats have risen multi-fold particularly in the last three years. Post Covid-19 pandemic, realty prices have increased.
Builders too have their own concerns. The land rates in and around Hyderabad have become exorbitant. In addition to this, the growing steel and cement prices and labour costs and other materials have become dearer. This is costing them a lot as their profitability is taking a severe hit.
The high-rise multi-storied apartments are especially facing the heat. Both the middle-class and premium, luxury flats are being sold. The problem is with the above middle-class section who are not able to meet their exact requirement within their budgets.
Meanwhile, demand for villas and independent houses in the outskirts surged after Covid-19 pandemic outbreak. Many are wanting to move to distant locations at reasonable prices. On the other hand, realtors believe that this is just a phase and it will settle down and the growth will prosper soon. They’re hopeful that things will soon settle down and demand will be back. On the other hand, buyers are hopeful that the housing prices would come down due to vast inventory and little demand. Many are also looking to opt for rented flats and diverting the investments.