Hyderabad: Hyderabad real estate market in the last six months has seen a heightened activity in the office space segment with about 38.5 lakh sqft space getting transacted. This is 43 per cent more compared to 26.9 lakh sqft transacted during the corresponding January-June period last year. New completions during the past six months has added about 39.7 lakh sqft, which is 129 per cent more than 17.3 lakh sqft added during same period last year, according to property consultant Knight Frank India Real Estate Report.
Samson Arthur, Director, Knight Frank (Hyderabad), said the volume added through the new completions is a new record for the city. A similar trend was last seen in the first half year of 2008, when 39 lakh sqft was added. “What we have seen in the first of the 2019 is that projects that were in the pipeline have now started to see light of the day. This trend is expected to continue for some the next two or three years,” he said.
“One cannot deny the fact that the good show of the office market has been rubbing off on to the residential property maket,” said Arthur adding that weighted average rentals for the office space has now touched Rs 59 per sqft compared to Rs 53 per sqft last year.
“The growing office space story in Hyderabad is not a flash in the pan as the rise is consistent over the last three years driven by organic growth,” said Arthur.
During the same six month period this year, the residential segment in Hyderabad has seen 5,430 new units getting launched, up 47 per cent from 3,706 units last year. Sales this have remained flat at 8,313 units. He clarified that launches happened now will take some time to take shape and these will be reflect in sales next year or later. The average pricing increased nine per cent to Rs 4,373 per sqft from the earlier Rs 4,012 per sqft.
He said about 20 projects are awaiting environment clearances. Maximum sales of the residential units happened in the western part of the city towards Hitec City. However, this is lower than last year. This is compensated by the increase in demand in the northern side of the city towards Kompally . Majority of the new launches were in the price band of Rs 25 lakh to Rs 50 lakh. The unsold inventory during the period was 4,265 units, down by 67 per cent form the corresponding period last year.
Buyers preferred projected that were nearing completion or that have been completed to save on the GST.
Hyderabad is turning into a favoured location mainly due to the presence of robust infrastructure, which is getting augmented regularly over time. While other markets are trying to catch up in providing the required infra, Hyderabad has the infra that will meet the future needs.