ADVERTISEMENT
ADVERTISEMENT

Hyderabad sees robust sales in residential, commercial realty

Hyderabad sees robust sales in residential, commercial realty
Highlights

The City of Pearls is a story of growth both in the commercial and residential markets, said Knight Frank India, an international property consultant

Hyderabad: The City of Pearls is a story of growth both in the commercial and residential markets, said Knight Frank India, an international property consultant.

In its tenth edition of flagship half-yearly report - India Real Estate, Knight Frank said, “In commercial office market, both supply (19 per cent) and leasing activities (24 per cent) saw heightened activities, in 2018 over 2017. Commercial office leasing saw record high transactions of over 4 msf in H2 2018. The residential market complemented to the sweet success of commercial market. Supply saw a whopping 54 per cent rise y-o-y in full year 2018 while sales rose by 9 per cent y-o-y in 2018.”

Samson Arthur, Branch Director, Hyderabad, Knight Frank said “Hyderabad is definitely punching above its weight and regaining its challenger status to other key markets of India. This is especially true in case of commercial leasing where the volumes are comparable to those of NCR and Mumbai. The residential market, backed by heightened sentiments, has been performing well above the national average. In context to the residential market specifically, Hyderabad’s infrastructure has been instrumental in augmenting sales as well as prices.”

The residential market for Hyderabad registered positive growth of 15 per cent in H2 2018 over the same period last year. The total units sold in this period was recorded at 7,278. The full year 2018 recorded total sales of 15,591 units registering an annual rise of 9 per cent over last year.

The market, while operating on a lower base when compared to other markets, has be registering steady upward movement in sales velocity, especially post the demerger from erstwhile Andhra Pradesh. New unit launches in H2 2018 were recorded at approximately 1700 units registering a growth of 81 per cent y-o-y over same time last year.

New launches for the entire year of 2018 also demonstrated strong trend registering an increase of 54 per cent over last year. Total new launches in 2018 was estimated at 5404 units. West Hyderabad continues to be the largest market accounting to 84 per cent of the new launches in the city. 43 per cent of all launches were in the affordable and mid category with ticket price of up to INR 5 mn (50 lakhs). But the majority launches were interestingly concentrated in the price bracket of INR 5 – 7.5 mn (5- 7.5 Lakhs).

As regards the commercial market, H2 2018 recorded an all-time high leasing volume of 4.3 msf. The total transaction recorded for the complete year of 2018 is estimated at over 7 msf denoting a 24 per cent growth over last year. With this significant rise in leasing activities in 2018, Hyderabad has emphatically come closer to larger sized markets such as NCR and Mumbai.

The leasing activities were driven by IT/ITeS that constituted 44 per cent of the total leasing, however noteworthy growth was recorded in segments of Manufacturing (26 per cent) and other services (29 per cent) including Co- Working spaces. Total new supply in H2 2018 was recorded at approximately 2 msf recording a rise of 70 per cent y-o-y.

The total new supply in Hyderabad for full year of 2018 was close to 4 msf denoting a rise of about 19 per cent y-o-y against 2017. Average rentals grew at 14 per cent with PDB and SBD recording identical rise of 16 per cent in rental values at the end of 2018. Vacancy crept up marginally settling just over 7 per cent mostly on account of large infusion of supply experienced in the second half of 2018.
The report also said that after much delay, RERA becomes a reality in Telangana (new launches slowed down due to teething problems after RERA became a reality in September 2018).

The report presented a comprehensive analysis of the residential (across eight cities) and office (across seven cities) market performance for the period July – December 2018 (H2 2017). It has established 2018 to be historically best performing year for the commercial office with leasing crossing 46 million square feet (msf).

For the residential market saw some upward movement in sales velocity but stopped short of being a year of recovery. Total sales of residential units were estimated to be 242,328 units registering a 6 per cent increase over full year 2017.

Show Full Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
Subscribed Failed...
Subscribed Successfully...
More Stories


Top