Hyderabad residential and commercial real estate markets are on revival path and the city is expected to show more growth on the back of government’s infrastructure steps and policy moves. A report by realty consultant JLL said that sales in residential realty market in the city is likely to pick up. It said,”Launches of new residential projects in Hyderabad are slow, with only the western sub-market showing some activity. The new government is trying to instil a positive sentiment in the market with a slew of infrastructure initiatives and policies. It is expected that the market will remain stable with a positive bias, with existing stock witnessing a stable off-take across the micro-markets. In light of the anticipated pick-up in office absorption and job creation, sales in the residential sector are likely to pick up, “A. Shankar, National Director & Head of Operations – Strategic Consulting, JLL India said.
The city’s real estate market has witnessed a slow growth following political unrest before formation of Telengana. It is now re-orienting itself as business hub with technology companies being attracted for investment. At present, the unsold inventory in the residential sector in the city stands at 15,000 plus units.
JLL further added that the existing and proposed infrastructure projects such as 20 flyover projects, Outer Ring Road (Phase 1 & 2A is operational), radial roads, inner Ring Roads, expressways and MRTS will help create real estate demand across the city over the medium to long term. Low cost of living and good quality of life also support the city’s real estate market.
Hyderabad’s Gachibowli, Kondapur, Miyapur and Manikonda lead in the affordable housing development segment in the price range Rs 2,800-6,000 per square ft. These are also the areas which have seen maximum absorption – a trend of approximately 3,500 to 5,500 units per annum.
Banjara Hills and Jubilee Hills dominate the premium segment in the price range from Rs 8,000-14,500 per square ft. sq.ft. Maximum absorption is being witnessed in the western and eastern sub-markets, with a trend of approximately 3,500 to 5,500 units per annum.
The commercial real estate market in Hyderbabad has witnessed a resurgence with commercial leasing and absorption of Grade A spaces pikcing up to 1.2 million sq. ft., and vacancy dropping to 8% in first quarter of 2016 from 10 per cent in 2015 on account of IT, digital and e-commerce companies announcing huge investment in Hyderabad.
“The average lease rental in Hyderabad is recorded to be Rs 55/sq.ft./month, and capital values are at Rs 4,800 – the lowest when compared to all other commercial and IT destinations of the country,” JLL said.
In the commercial office market, locations such as Gachibowli, Madhapur, HITEC City, Kondapur and Nanakramguda are expected to witness strong demand, which will also support the residential real estate market.
[Source: The Financial Express]
