Hyderabad Highest Q3 New Residential Launches
Hyderabad dominated new launches accounting for more than 40% of the overall launches (across all 7 cities under review) during Q3 2020, according to JLL Research. The city witnessed a 7% growth in new launches in Q3 as compared to Q2 this year. With new launches concentrated in the Kondapur, Hafeez
Published -
Oct 16, 2020 2:36 AM
Hyderabad dominated new launches accounting for more than 40% of the overall launches (across all 7 cities under review) during Q3 2020, according to JLL Research. The city witnessed a 7% growth in new launches in Q3 as compared to Q2 this year. With new launches concentrated in the Kondapur, Hafeezpet and Manikonda regions, Western Suburbs continued to account for a majority share in new launches. Apart from Western suburbs, L. B. Nagar and Kompally in the Northern and Eastern Suburbs submarkets witnessed an increase in launch activity. Most new launches were in the 3 BHK configuration and development activity was concentrated in the INR 0.75 to 1.0 crore price segment which contributed 59% of the total new launches during the quarter. Low inventory levels, especially in ready to move in projects have provided developers with the lever to maintain prices. With sales expected improve further on return to normalcy, capital values have remained stable across all the submarkets in the city. Sales traction was witnessed more in ready to move in projects or projects likely to complete in the next 2-3 quarters. In the subsequent quarters, the translation of demand into sales will primarily hinge on enhanced consumer confidence, which in turn depends upon the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large. The further easing of lockdown restrictions and the upcoming festive season might help in bringing buyers back to the market. An assessment of years to sell reveals that the expected time to liquidate stock has increased from 3.6 years in Q2 2020 to 4 years in Q3 2020. While the residential space remains unpredictable, favourable supply dynamics could deliver potential upside for both homebuyers and developers in the medium-term. New launches were restricted with 12,654 units launched in the third quarter, a decline of 14% quarter-on-quarter. Developers focused on completion of under construction projects and clearing their existing inventory. Hyderabad and Mumbai accounted for over 60% of the total new launches in the quarter. The drop in new launches was driven by Bengaluru, which witnessed a substantial decline of over 80% as compared to Q2 2020. Development focus on mid and affordable segments continued in Q3 2020 with nearly 75% of the new launches in the sub INR 1 crore category. Moving ahead, the focus on these price segments is expected to continue with developers focusing to reap the benefits of strong pent up demand.
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