Hyderabad residential sales grew 32% in Q3

Hyderabad: Hyderabad's residential market performance remained robust during July-September quarter (Q3) of 2022. The city recorded 32 per cent y-o-y growth in sales at 7,900 housing units in Q3 2022 when compared to 5,987 units in the same quarter last year, says a report.

As per international property consultancy Knight Frank India's report 'India Real Estate Update', the strong momentum in demand emanated into an uptick in the supply of new residential projects in the city.

According to the report, new launches in the city registered 19 per cent y-o-y growth at 11,000 housing units during the reviewed quarter over 9,256 units in Q3 2021. The city also witnessed a healthy surge in price rise with aggregate residential value moving up by 6 per cent y-o-y during Q3 2022.

However, the office space transactions in the city declined 60 per cent y-o-y to 0.8 million sft in Q3 from 2.1 million sft in a year-ago period. The city witnessed 51 per cent growth in new office completions at 3.3 million sft during the quarter this year against corresponding quarter previous year.

On average, rent increased 7 per cent y-o-y, the city recorded the third highest 12 months office rental value growth across eight leading Indian cities during Q3 2022. Availability is very limited in HITEC City and Madhapur. New supply is expected shortly in these business districts which will bolster volumes.

The commercial market in India recorded 7-quarter high in leasing volumes in Q3 2022. Growing by 29 per cent YoY, transaction volumes stood at 16.1 million sft across top eight cities in India during Q3 2022. The transaction volumes surpassed pre-pandemic quarterly average of 2019 by 6 per cent.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said, "The consistent growth in leasing volumes along with stable to growing rents depicts the strength of the office market. Large scale hiring in the last 18 months, especially in the IT/ ITeS sector and companies implement return to office policies is creating incremental office space demand. This is further complemented by pent up demand from 2020 – 21 which together are propelling office space demand. The momentum seen in the year so far points at annual volumes that could match the record levels seen in 2019."

According to the report, residential sector saw an annual growth of 15 per cent in Q3 2022 to 73,691 housing units across the top eight cities in the country from 64,010 in Q3 2021.