A real boom
Increased house sales in Hyderabad in 2019
150 percent growth in residential projects, demand for office space due to IT pressure
HYDERABAD: The Hyderabad residential market will lead the year 2019 with a steady growth of 4 percent with sales of 16,267 units, according to the half-yearly report released by Knight Frank India. Knight Frank India released its prestigious half-yearly report, – India Real Estate -12th edition on Tuesday. Knight Frank on Tuesday presented an edition with a comprehensive analysis of residential and office market performance in eight major cities during July-December 2019 (H2 2019).
Home sales in Hyderabad remained stable in 2019, with a growth of 150 in residential project launches, the firm said. Knightfrank said in its semi-annual report that Hyderabad has seen a 10 percent higher average price increase in 2019 than last year. Knightfrank also noted that office space set an all-time record with 1.2 million sq-metres (12.8 sq ft) of transactions in 2019 as a whole.
Purchase of fixed residential units
In contrast to the previous year, the IT/ITeS (IT/ITeS) sector witnessed a huge growth of 173 percent in terms of office space in H2 2019, the company said. According to a report by Knight Frank India, the firm attributed this growth to the steady purchase of residential units in Hyderabad with 13,495 units at 13,495 units in 2019, a 150 per cent year-on-year growth.
The firm said that 2019 saw an all-time high growth for office space in Hyderabad, with 1.2 m2m (12.8 million sq ft) of transactions, a remarkable 82 percent growth in 2019 over the previous year. 1 million with a huge growth of 181 percent in the same year for new office space. The firm said the city showed a strong commercial trend in the market with Hyderabad overtaking even Bengaluru in leasing volumes during H2, 2019 (July-December) with an increase of 10.9 million sq.m.
Characteristics of Hyderabad Residential Market
Residential projects in Hyderabad grew by 150 per cent to 13,495 units in 2019, compared to a six-year high of 8,065 units in early H2 2019, a whopping 375 per cent growth this time, according to Knight Frank. Kukatpally, Madapur, Kondapur, Gachibowli, Rayadurgam and Kokapet areas (in West Hyderabad) saw the highest number of 5,176 unit launches in H2, 2019, Knightfrank said. Hyderabad recorded a robust growth of 9 per cent in residential sales in H2, 2019, while the commercial segment saw a 4 per cent growth in activity, the firm said.
The growth of Hyderabad is different…
Knight Frank India Hyderabad Branch Director Samson Arthur said that the growth of the Hyderabad residential market has now reached a new level. He said that the residential market of this city will continue to run as demand, supply and investments are increasing and it continues to be an attractive sector. With strong performance in the form of office market, Hyderabad is now witnessing phenomenal growth in housing projects.
He noted that despite the increase in prices, the pace of sales has remained stable, a surprising development. He said that this market is basically performing strongly as it has the ability to attract investments from institutional lenders and national level developers. Compared to India’s housing market story, Hyderabad’s growth is different, demand in the form of IT office growth, attracting migrants and cheap property market are all coming together, he said.
Hyderabad is ahead of the cities of Mumbai, Gurgaon and Bangalore.
Director Samson Arthur stated that Hyderabad has recorded phenomenal growth in the office space segment and Hyderabad is ahead of the cities of Mumbai, Gurgaon and Bangalore. He said that basically the growth of technology and IT companies is high and in this context it is likely to be stable in the coming days. Most of the new projects are being started in the vicinity of Hi-Tech City and Gachibowli. A similar type of growth can be seen in the form of micro-markets in Nanakramguda, Financial District and Kokapet. He added that the reason for this is the large amount of land available here.
