After Thane in Maharashtra, Hyderabad has the second-highest number of unsold homes in the nation at 1 lakh. However, a recent property auction in Hyderabad’s Kokapet saw an acre sell for as much as Rs 100 crore, drawing attention from across the country to the city’s real estate market.
Image Source: Telangana Today
Hyderabad’s real estate industry is in the midst of a golden age. In a series of auctions held at Kokapet, the government’s municipal organisation Hyderabad Metropolitan Development Authority raised an astounding Rs 7000 crore. One square yard at Hyderabad’s Mokila sold for a staggering Rs 1.5 lakh while the initial price was Rs 25000, another real estate bombshell. It’s important to remember that the auctions took place before the state assembly elections. The real estate giants have their hands on the land.
The Rise and Fall Of Real Estate Units
At the end of the June quarter, Thane in the Mumbai Metropolitan Region had the highest number of unsold homes (1,07 lakh), while Chennai had the lowest number (almost 20,000 units). PropEquity said that the inventory of unsold homes fell by 2% overall, from 5,26,914 units at the end of March to 5,15,169 units after the second 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.
Samir Jasuja
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Between April and June, 1,22,213 housing transactions and 1,10,468 new housing units were added in nine cities. As a result, there were fewer unsold residential units. According to the data, the number of unsold housing units in Thane decreased by 2% from the end of March to 1,07,179 units at the end of the June quarter.
The unsold housing stock in Mumbai decreased by 3%, from 62,735 units to 60,911 units. However, Navi Mumbai’s inventory increased to 32,997 units from 31,735 units.
The statistics showed inventories fell by 26% in Delhi-NCR, from 56,866 units to 42,133 units. Unsold housing stocks in Chennai decreased by 18%, from 24,362 units to 19,900 units.
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The number of unsold housing units in Pune increased by 9%, from 69,331 to 75,905 units. In Bengaluru, unsold homes increased by 4%, from 49,986 to 52,208 units. In Kolkata, unsold housing stock increased by 20%, from 18,247 to 21,947 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.
Image Source: Contruction Week India
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.
The Kokapet Land Auction
The Telangana government auctioned 45.33 acres of valuable land in Kokapet, Hyderabad in August, bringing in Rs 3,319.6 crore. For the government, this represents a significant increase in revenue before the state Assembly elections.
Image Source: Siasat Daily
Through the MSTC website, the Hyderabad Metropolitan Development Authority (HMDA) held an online auction for vacant lots at Neopolis in Kokapet Phase-II, Gandipet Mandal, Rangareddy district. The auction of plots was heavily publicised to draw investors and developers from Mumbai, Bangalore, Chennai, and Hyderabad significant cities.
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At the auction, Bridage Enterprises paid the highest price for a piece of land—Rs 660 crore. In Kokapet, seven plots with sizes ranging from 3.6 acres to 9.71 acres were auctioned. The plots had an upset price value of Rs. 1,586.50 crore. The auction generated a total of Rs 3,319.6 crore in revenue. The highest price per acre set a state record of Rs. 100.75 crore.
