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Hyderabad realty on recovery mode

Hyderabad: Robust infrastructure, availability of skilled manpower and competitive real estate prices differentiates Hyderabad from other metros in the country. With the city reinventing itself as a key market with well-defined new market drivers, its residential real estate market dynamics are also improving significantly. The supply of new units launched in Q2 2017 this fiscal has grown by 12 per cent over the previous quarter.

Notably, however, Gachibowli, Kukatpally and HITEC City – the buzzing IT-ITeS and financial districts of Hyderabad did not witness any new supply in Q2 2017. This change in trend may be attributed to a shift in focus towards affordable housing, which cannot be supported in these high-priced micro-markets. The affordable housing segment constituted a majority of the overall launches in Q2 2017, which were mainly concentrated in the peripheral areas of the city.

According to Prashant Thakur, head – Research, Anarock Property Consultants, “Residential unit sales remained unchanged in H1 2017, while prices in select micro-markets (such as Appa Junction, Uppal, Kukatpally, and Manikonda) grew between 5-10 per cent y-o-y. Post implementation of RERA, developers are in a hurry to complete their ongoing projects.

The increased pace of construction has given homebuyers renewed confidence, as a result of which sales have remained steady despite some of the residual market challenges. Due to a steady growth in sales, inventory overhang has also reduced to 24 months as of H1 2017 (from 32 months as of H2 2016).

Hyderabad is back on the radar of global corporates who are eager to expand their portfolios there. The improving residential real estate dynamics are now signaling that a definite recovery is on the anvil. Hyderabad is all set to make a new and very visible mark on the Indian real estate sector, he added.

Office space demand on rise

Hyderabad offers a great work-life balance, which is substantiated by the fact that Mercer’s Quality of Living rankings 2017 ranked Hyderabad as the top Indian city for the third year in a row. The city is now visibly re-orienting itself as a major business hub, and several companies are investing in the city, he points out.

Hyderabad topped office leasing market in Q2 2017 and witnessed a 93 per cent rise in the net absorption of office space, at approximately 1.75 million square feet. Large multinational corporations such as Infosys, Deloitte, Amazon, Accenture, Wipro and many more have already launched their offices in Hyderabad, vouchsafing the conviction that the corporate world is now displaying in the city’s potential.

In fact, there is currently a shortage of Grade A office spaces in Hyderabad as a result, there is a fresh demand for land parcels where new commercial office facilities can be created. In addition to corporates fueling the city’s economy, the Telangana government has also taken decisive initiatives to promote Hyderabad as India’s new startup capital.

T-Hub (Technology Hub), located at the IIIT-Hyderabad campus in Gachibowli and spread across 70,000 sq ft is India’s largest incubator for startups. With T-Fund (Telangana Innovation Fund), the Government is planning to set up an early-stage investment vehicle with an initial target corpus of Rs 2,000 crore in collaboration with T-Hub. This fund will focus on investing in sector-specific start-ups. All these initiatives will attract new investors and corporates. As it will push hiring, demand will be seen for office space as well as residential units.

The post Hyderabad realty on recovery mode appeared first on Telangana Today.

This post was syndicated from Telangana Today. Click here to read the full text on the original website.

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