Real estate records 12% growth in Hyderabad

The residential real estate market in Hyderabad in the downstream south witnessed 12 per cent year-on-year (YoY) and a 1.4 per cent quarter-on-quarter (QoQ) growth in the first quarter (January-March) of 2020 indicating that the market remained buoyant on all parameters, Magicbricks, PropIndex Q1 2020 said in its recent study. The report showed consistently performing commercial sector in Hyderabad had a positive demand on the residential real estate. Strong connectivity through the Outer Ring Road and the Metro Rail Network has also fueled real estate development in prime areas such as Gachibowli and Kukatpally. Commenting on the PropIndex, Sudhir Pai, CEO, Magicbricks, said that the Government is taking stringent measures to contain the Covid-19 outbreak, but the long-term impact on property market is uncertain, and yet to be assessed. But it seems that the consumer interest has not tapered off. There is a pent-up demand for ready-to-move in properties as data suggests that the 80 per cent of searches are happening in this segment and the rest for under-construction. Magicbricks PropIndex suggests that developers increasingly focused on peripheral locations such as Kompally, Adibatla, Tellapur, and Patancheru, as ORR connects them with IT hubs, international airport, and emerging employment destinations. The demand for new projects by prominent developers with good track record continued to support prices, though the market favored the ready to move segment, where prices have climbed a phenomenal 71 per cent in the past 5 years. Despite this, Hyderabad continues to offer a sizable but shrinking affordable housing market in the less than ₹5,000 per sq ft segment. Also, prices of both ready-to-move and under-construction properties in the less than ₹4,000 per sq ft segment fell in Q1 2020, while prices for the premium recorded resounding upswing, it claimed