On Thursday, real estate consultancy firm Frank Knight released a report. According to the report, the residential spaces in Hyderabad have shown a four percent Year on Year (YoY) increase in the costs, which makes the city highest between the top eight markets in the country. The City has recorded home sales of 1609 units in just the third quarter (Q3) of the year 2020.
Launches in the city for the housing purposes took place in Manikonda, Kompally, Shamirpet, Narsingi, Quthbullapur areas. Approximately 1,234 units were launched during the said period.
Also, in the sales of the office spaces, rental values have increased by 2 percent. Hyderabad observed office space transactions of 0.5 million square feet in this quarter.
The report compares Q3 2020 with the previous year quarters
However, sales and supplies remained extremely low in the period between April and June because of the nationwide lockdown. Also, the Frank Knight report compared the third quarter of the year 2020 with that of the quarters of the year 2019.
As the cities remained under restrictions due to the imposed lockdown for most of the period of the Q2 2020 (April – June) due to the pandemic. Thus, sales and supplies volumes record low levels during this quarter. So, to compare the market changes of the Q3 2020, the Report compared the performance of the Q3 2020 to the quarters of the year 2019, which are the before Coronavirus days.
What does the report say?
The total residential sales among the top eight markets under review, during Q3 2020 reached 54 percent of the quarterly average of the previous year.
Similarly, residential launches during the third quarter of 2020 reached 56 Percent of the 2019 quarterly average. Mumbai, Bengaluru, and Delhi NCR accounted for 56 Percent of quarterly sales volume during Q3 2020 compared to the previous year which was 62 percent last year. This is primarily due to the fall in Bengaluru’s share in the total shares during the said period.
Kolkata was the only market that exceeded the quarterly average of 2019 in both parameters, i.e, sales and new launches increasing to 137 percent and 139 percent respectively, as compared to the previous year level.
Shishir Baijal, chairman and MD of Knight Frank India said, “Developers have been focusing on liquidating inventory and homebuyers are inclined to purchase ready assets, which has translated into reduced unsold inventory levels in this quarter.”