New project launches declined by over 90% after March, says a report by the website
The second wave of COVID-19 caused a mighty blow to real estate in the twin cities with new launches declining by over 90%, inquiries having dipped by 30%, and sales plummeting up to 90% post-March onwards, said real estate website ‘99acres.com’ in a report released on Wednesday.
“The economy went through a tumultuous time in April-June battling one of the biggest healthcare crises ushered by the unprecedented second wave of COVID-19. Like most sectors, transactions in the real estate market too came to a grinding halt in April with lockdown restrictions across the country,” said chief business officer Maneesh Upadhyaya.
The January-March quarter witnessed site visits, home inquiries, and sales volume going up in both new home and resale segments but April and May recorded a dip in numbers unheard of. Owner listings, too, saw a 5% de-growth but home inquiries picked up in June with active COVID caseload reducing and lockdown restrictions dropped.
Affordable housing within ₹40 lakh: Chandanagar ₹3,200- ₹4,100; average rental asks per sqft/monthly ₹13 & rental yield 3.54%. Nizampet ₹3,400- ₹4,300 average rental ask per sqft/monthly ₹11 & rental yield 3.32%.
Mid-income housing between ₹40 lakh and ₹1 crore: Miyapur ₹3,500- ₹4,500; average rental ask per sqft/monthly ₹11 & rental yield 3.10% Kukatpally ₹4,300- ₹5,500; average rental ask per sq. ft ₹15 & rental yield 3.04%. Manikonda ₹4,100- ₹5,200, average rental ask per sqft/monthly ₹14 & rental yield 3.34%
Luxury housing – (₹1 crore & above): Gachibowli ₹5,600- ₹7,800; average rental ask per sqft/monthly ₹18 & rental yield 2.98% Kondapur ₹5,500- ₹6,600, average rental ask per sqft/monthly ₹16 & rental yield 3.11%. Hitec City ₹6,600- ₹8,600; average rental asks per sqft/monthly ₹20 & rental yield 3.19%. Rental yield has been calculated for a 1,000 sqft apartment.
Property prices in most localities remained stable throughout the quarter. However, Gachibowli, Nallagandla, Manikonda, Pragati Nagar, and Chandanagar posted an appreciation of up to 4%. Ultra-luxury properties, priced above ₹2 crores garnered some traction, particularly those reconfigured as 4 BHK units with some deals closed at 5-10% lower than the rates quotes in property listings by owners.
Areas in the North and the West, such as Kukatpally, Miyapur, Kondapur, and Madhapur, remained popular among tenants due to their proximity to prominent IT hubs like Hitec City and Gachibowli.
Mid-sized 2/3 BHK homes available at a monthly rent between ₹18,000-₹30,000 continued being in demand.