Realty on recovery path as rentals rise by 5%

Hyderabad: Realty segment in Hyderabad staged a modest recovery during the second quarter ended September, after suffering from sluggish activity owing to combo jolt of demonetisation and GST.

Hyderabad housing market witnessed two per cent rise in property prices, while rental moved up by up to five per cent, according to a research report.

The real estate market may further recover in the next few quarters, forecasts C Shekhar Reddy, former national president of real estate body Credai. However, Reddy expressed doubts over the impact of GST uncertainty on demand renewal.

Speaking to The Hans India, he said: “The latest marginal recovery is due to easing out the impact of demonetisation. However, uncertainty over GST in the real estate sector is still looming large.

The advantage of Hyderabad real estate is affordable pricing, when compared with other metro cities.”
The domestic real estate market is facing a multi-year slowdown leading to poor sales and significant delays in completion of housing projects.

Prices have also fallen or remained stable, according to the report ‘Insite’ on July-September quarter released by 99acres.com, a property portal.

Housing prices rose by up to two per cent, while rentals increased by up to five per cent in the country’s eight major cities during the July-September quarter, year-on-year, according to the realty, which brings out quarterly research reports focusing on capital value (price hike) and rental price trends in the residential market across eight metro cities of India.

Narasimha Jayakumar, Chief Business Officer, 99acres.com, said: “The housing market in Hyderabad recorded a growth of two per cent in capital values. Rentals in the city moved up by five per cent.” The rise of rental values in Hyderabad is highest among all eight major cities.

Narasimha said in the report that “the Indian metros are braving the policy changes, and there are some green shoots of optimism in consumer sentiment. Chances are that the sale/purchase market should pick up with this festive season.

Moreover, the interest rates are in favour of consumer like never before. This should bode well for the real estate market.”

As per the report, housing price fell by one per cent in Bengaluru, but rentals grew by three per cent during July-September quarter as against the year-ago period.

Housing prices and rentals in the Delhi-NCR market remained stable. In Mumbai, housing prices were stable, but rentals rose by two per cent.

Housing prices in Chennai rose by one per cent and rentals inched up 2 per cent. Pune witnessed no increase in housing prices while rentals advanced by 2 per cent. In Kolkata, housing prices and rentals rose by one per cent and 2 per cent respectively.

The capital values declined by one per cent in Ahmedabad, but rentals appreciated by three per cent during July-September 2017 compared with the corresponding period of last year.

Over 9 million people visit the website every month looking for real estate solutions as 99acres.com has over 8 lakh residential and commercial property listings.