Residential launches bounce back owing to political stability and improved infrastructure.
Knight Frank India today launched the ninth edition of its flagship half yearly report – India Real Estate. It presents a comprehensive analysis of the residential and office market performance of Hyderabad for the period January – June 2018 (H1 2018).
• New completions down 13% in H1 2018 YoY
• Good show of the office market continues in H1 2018; transactions up 15% YoY
• Average rentals grow by around 8% YoY
• Want of quality office space pushes vacancy to abysmally low levels; vacancy levels in markets like Madhapur, HITECH City, Gachibowli and Nanakramguda area as low as 2–4%
While the share of the IT/ITeS sector shrinks to 36% in H1 2018, share of ‘Other Services’ increases to 43% in H1 2018 of which co-working garners 29% space.
• Launches bounce back in H1 2018; up 44% compared to H1 2017
• West Hyderabad continues to be the largest market accounting to 71% of the new launches
• Majority of new launches in INR 7.5-10 mn price category
• Amidst price correction in most cities, Hyderabad records an appreciation. Lack of launches, steady demand and shortage of ready to move in houses push up prices by 8%
• Sales cross the 8,000 mark for the first-time post bifurcation of the state; strong performance of the office market to boost pick up on the residential side
• Improved infrastructure and political stability major catalyst for growth of realty sector
• West Hyderabad continues to be the biggest market witnessing 69% of sales
• Unsold inventory declines 44% YoY on the back of launches; age of inventory a major concern at 18.5 quarters
Speaking about the findings, Samson Arthur, Director – Hyderabad, Knight Frank said, “The worst seems to be behind us, and the real estate market of Hyderabad is expected to witness new benchmarks. Sluggish residential launches until now, due to policy issues, is soon set to transform with the announcement of several new projects. For the fourth year in a row, thanks to IT and co-working space, real estate continues to be in high demand by office sector in Hyderabad. Benefits of robust office demand rubbing off on the residential sector is now distinct, with record 8,000 units sold in the first half of 2018. The office market is expected to continue the good run for the second half of 2018 and this together should be a harbinger of another strong performance of Hyderabad amongst the key property markets of India.”