During the initial quarter of (January-March) of 2021, Hyderabad’s real estate sector received a significant impetus. The city is leading the institutional investments chart in realty segment with 42 per cent share. It is followed by Mumbai at 21 per cent. With numerous ongoing projects, it witnessed a major jump with the highest capital flows of a whopping amount of around $384 million.
On the other hand, Mumbai was infused with $193 million in its office and residential segments which is largely supported by reduction in stamp duty that was declared by the Government of Maharashtra. As per JLL’s Capital Markets Update Q1 2021, institutional investments gained momentum showcasing 21 per cent growth in volumes at $922 million in the Indian real estate market.
Investments were driven by a number of external macroeconomic factors. Industry experts at Modi Builders, a real estate company in Hyderabad known for affordability and modern amenities across residential projects, also witnessed positive sentiments of customers. Despite COVID-19 pandemic and stagnancy in the economy, their projects like Elegance, Emerald Heights, Paradise Homes were highly preferred by the buyers during the first quarter of 2021.
Industry experts believe that with relaxations in the conditions, the city of nizams will continue to see the infusion of big moolah. Investors are likely to evaluate more deals and conclude their investment plans especially for the projects which are in the last stage of completion.
Across the top 7 Indian cities, sale of residential places in Q1 of 2021 recovered over 90 per cent as compared to the pre-covid levels. However, the surge in COVID-19 cases from mid-March 2021 has created a panic and raised concerns among the potential buyers. With increasing number of cases every day, the predicted rise in investments is expected to get delayed in the second quarter.