Hyderabad has 1L unsold house inventories, second highest in 7 cities

Hyderabad: Hyderabad has one lakh unsold house inventories, the second highest in the country after Maharashtra’s Thane.

However, the real estate sector in Hyderabad has gathered national attention recently when an acre was sold for as high as Rs 100 crore in Hyderabad’s Kokapet during a recent land auction.

The real estate market in Hyderabad is witnessing a golden era. The government’s civic body Hyderabad Metropolitan Development Authority raised a whopping Rs 7000 crore in a series of auction at Kokapet. Another real estate shocker came when one square yard at Mokila went for a pounding Rs 1.5 lakh when the upset price was Rs 25000. Pertinent to note that the auctions were held ahead of the state assembly elections. The real estate giants have their hands on the land. However, why aren’t people buying properties against the hype?

Thread on How Govt is giving Steroids to #Hyderabad Real Estate in keeping inflated prices high and delaying the bubble to get burst. #Neopolis
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Rise and fall of home inventories

According to PropEquity — an online platform for analysis of real estate data, analytics, market research reports and property price trends — in Hyderabad, unsold housing stocks rose by five per cent to 99,989 units from 95,106 units.

Thane in the Mumbai Metropolitan Region has the maximum of 1.07 lakh unsold homes at the end of the June quarter, while Chennai has the lowest at nearly 20,000 units.

Across nine major cities, PropEquity said unsold housing stocks declined by two per cent — from 5,26,914 units at the end of March to 5,15,169 units at the end of the June quarter.

“The largest share for the unsold stock among Tier-1 cities is of Thane with 21 per cent. Chennai has the minimum unsold stock of residential units in Q2 2023,” PropEquity founder and CEO Samir Jasuja said.

Housing sales in April-June across nine cities were 1,22,213 units, while 1,10,468 units were added. This led to a reduction in number of unsold residential units.

As per the data, the unsold housing stocks in Thane were 1,07,179 units at the end of the June quarter, down by 2 per cent from 109,511 units at March-end.

Mumbai saw a three per cent fall in unsold housing stocks to 60,911 units from 62,735 units. However, inventories rose in Navi Mumbai to 32,997 units from 31,735 units.

The data showed that Delhi-NCR saw a maximum fall in inventories by 26 per cent to 42,133 units from 56,866 units. In Chennai, unsold housing stocks declined by 18 per cent to 19,900 units from 24,362 units.

Pune witnessed a nine per cent increase in unsold housing stocks to 75,905 units from 69,331 units. Unsold units in Bengaluru went up four per cent to 52,208 units from 49,986 units. Kolkata saw a 20 per cent growth in unsold housing stocks to 21,947 units from 18,247 units.

Commenting on the Delhi-NCR data, realty firm Krishumi Corporation MD Mohit Jain said, “A combination of factors including decent economic growth, reasonable interest rates, pent-up demand and investment potential has contributed to the robust demand for all segments of properties including luxury properties in the last couple years.”

According to Jain, there has been a significant reduction in unsold inventories, particularly in Delhi-NCR wherein demand has far outpaced newer supplies.

Kokapet land auction

In August, the Telangana government earned revenue of Rs 3,319.6 crore by auctioning 45.33 acres of prime land in Kokapet. This is a huge revenue gain for the government ahead of the state Assembly elections.

The Hyderabad Metropolitan Development Authority (HMDA) conducted an e-auction of open plots at Neopolis in Kokapet Phase–II, Gandipet mandal, Rangareddy district through the MSTC site. The auction of plots was widely published to attract investors and real estate developers across the metro cities of Mumbai, Bangalore, Chennai, and Hyderabad.

Bridage Enterprises purchased a land parcel for Rs 660 crore, the highest in that auction. Seven plots ranging from 3.6 acres to 9.71 acres in Kokapet were auctioned.

The upset price value for the plots was Rs 1,586.50 crore. The total revenue made through the auction was Rs 3,319.6 crore. The highest price received was Rs 100.75 crore per acre, a record in the state.