The Magicbricks PropIndex Report (January-March) 2023 reveals that Hyderabad's real estate market has experienced a significant surge in property rates due to a demand-supply mismatch. The report notes that residential demand in Hyderabad grew by 6% QoQ, while supply dropped by 14.2% QoQ, resulting in a 5.8% QoQ increase in property rates. The western Hyderabad areas of Gachibowli, Miyapur, and Kondapur have seen the highest residential demand, thanks to their proximity to major employment hubs and the Nehru ORR.
Around 50% of the demand and supply in Hyderabad's real estate market is for mid-segment properties priced between Rs 5000-7000 per square foot. Additionally, there is a continued preference for spacious homes, with 2 and 3BHKs comprising 90% of the total demand in the city.
Sudhir Pai, CEO of Magicbricks, has elaborated on the current trends in Hyderabad's real estate market. He mentioned that despite the global slowdown, several multilateral agencies have projected that the Indian economy will grow by 6-7% in FY23. The recent Union Budget has also introduced various encouraging initiatives, including significant allocations to PMAY and UIDF, which have paved the way for employment opportunities and infrastructure development. Given the under-served demand for home ownership, Sudhir Pai is optimistic about the growth trajectory of residential demand in the affordable and mid-range segments. He believes the market will stabilize with the launch of new projects and timely delivery of under-construction properties, opening up new avenues for investment and innovation.
The Magicbricks PropIndex Report (January - March) 2023 also stated that Mehdipatnam (4.27%), Police Colony-Kondapur (3.96%), and Balanagar (3.75%) saw the highest increase in property prices QoQ. In contrast, Banjara Hills (-3.94%), Boduppal (-3.77%), and Nanakram Guda (-3.39%) experienced a decrease in property prices QoQ.
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