Residential demand in 2019: Hyderabad observed a consistent upward trend in prices

New Delhi: The demand for residential space in Hyderabad observed a consistent upward trend in prices, which rose by 3.8 percent from Rs 5,400 per sq. ft in July-September 2019 to Rs 5,600 per sq. ft in October-December 2019, said a report.

Out of the 12 cities surveyed, 10 residential markets have shown positive market dynamics in the last quarter of the year, Magicbricks's PropIndex Report Q4 2019 said.

In most of the cities, supply-managed to keep pace with the demand. "The highlight, however, is the south India market that continued to resist recessionary pressures, with prices appreciating in all three cities of Hyderabad, Chennai and Bengaluru," Pai added.

PropIndex also suggests that south Indian cities are doing commercially well and gathering pace due to infrastructure and connectivity with the main employment hubs. Bengaluru has shown steady growth in the residential market, with a strong 25 percent growth in the last 5 years.

The demand started to pick up in Chennai in the last one year, with prices moving in tandem, rising a moderate 5 percent year-on-year· Big ticket infrastructure projects are driving the real estate activity in Navi Mumbai market, which unlike the rest of the country, has given an impressive 21 percent return in the last 5 years.

Residential demand registered a meagre 1.8 percent growth in Delhi in 2019, while the market is still struggling in Gurugram and Noida despite improving infrastructure and lower interest rates, the report said.

While some areas of the country faced downward pressure on prices and reduction in supply, searches remained robust in the affordable segment.

The search trend suggests that India is looking for houses under Rs 4,000-5,000 per sq. ft, it said. "In Delhi, the demand has started to pick-up, but the options are limited. While the city prices remained low in the last 5 years, an increase of 1.8 percent in the last one year indicates a positive development for the residential segment of the city. The residential demand in Gurugram has been dull. However, the city's improving infrastructure could boost demand," the realty portal's report said.

It further said that Noida and Greater Noida markets are struggling to pick-up despite demand matching supply, affordability, and lower interest rates. While Noida's average prices fell by 10 percent, Greater Noida witnessed an increase of just 3.6 percent in the last 5 years.