Price growth continues in Hyderabad amid corona scare: PropTiger report

Property values in Hyderabad continue to see positive growth even though the growth momentum on the demand and supply side might have been halted because of the coronavirus induced lockdown. According to a report by Elara Technologies-owned online property brokerage firm,, property value in what is often called India’s pharmaceutical capital increased by 9% in the January-March 2020 period when compared to the same period last year.

From Rs 4,977 per square foot (psf) in Q4FY19, average price of flats in the City of Nizams has grown to Rs 5,434 psf in Q4FY20, shows the report titled Real Insight: Q4FY20. A consistent increase in prices over the past few years has now made Hyderabad real estate more expensive than real estate in India’s information capital Bengaluru and automobile manufacturing hub Chennai.

City Average property price Annual growth in Q4F20
Bengaluru Rs 5275 psf 3%
Chennai Rs 5,184 psf No change
Hyderabad Rs 5,434 psf 9%

 Source: Real Insight: Q4FY20

Primarily because of the COVID-19 situation, home sales in the city fell 39% year-on-year, with the sale of only 5,554 units during the quarter ended March 31, 2020. New launches saw an even sharper deceleration, falling 56% YoY. During the March quarter, shows the report, a mere 3,904 new units were launched in Hyderabad.

Elara Technologies - Housing - proptiger - makaan“Consistent price increases over the past few years have transformed Hyderabad from an affordable property destination into a city of mid and luxury segment homes. This is why the share of affordable homes is lower both in the number of sales as well as the number of launches in this market,” says Dhruv Agarwala, Group CEO, and

Hyderabad is different from most cities where affordable homes claim a lion’s share in quarterly sales as well as launches. Only 14% of all homes sold during the quarter in Hyderabad were units priced up to Rs 45 lakh – the government defined ticket size for homes to fall in the affordable category. In terms of launches, too, only 36% units were from the affordable segment.

When compared to any other major residential market, Hyderabad also has the lowest absolute unsold inventory as well as the lowest inventory overhang. At the end of the March quarter, builders in Hyderabad had an unsold stock consisting of 31,118 units. Inventory overhang in Hyderabad is currently 14 months, much lower than the national average of 27 months. Inventory overhang is the estimated time period builders in the city would take to sell off their existing housing stock at the current sales velocity. Nearly 84% of the unsold housing stock are units priced above Rs 45 lakh.

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