Lack of regulatory body curbs sentiment
Real estate activities and sales volume continued to remain restricted in the absence of an official RERA website and a regulator. This rendered approximately 10,000 newly-constructed homes in the last 1.5 years ineligible for being marketed or sold.
Civic and transport infra enhancement on the cards
The State government’s recent allocation of Rs 3,800 crore towards overhauling the existing civic infrastructure, cleaning and beautification of the Musi River and completion of metro connectivity projects, lent cheer to Hyderabad’s realty landscape.
Construction of Regional Ring Road to open up new land parcels
The development of the Hyderabad Regional Ring Road (RRR), connecting major highways – NH-9, NH-7 and NH-22 – is expected to spell good news for several existing real estate belts such as Warangal, Kothur, Bibinagar and Mulugu, among others, while opening up new topographies.
New IT corridors bode well for the real estate sector
The Telangana government’s plan to create new IT corridors in proximity to Madhapur, Gachibowli and Budvel is set to positively impact both the capital and rental segments of the city in the long run.
Upcoming office developments act as a silver lining
Over 32 million sq ft of office space is under various stages of construction, concentrated primarily near the secondary business district (SBD) and the peripheral business district (PBD). A fresh supply of Grade-A office space is anticipated to create demand in the residential segment in the future.
Hyderabad’s realty is poised on the threshold of growth as is evident from the steadily improving connectivity, office space absorption and civic infrastructure. All this, however, was offset by the lack of a regulatory body even a year after RERA was implemented countrywide. To this end, Apr-Jun 2018 witnessed limited new launches and traction from end-users.
Price points strengthened only due to several long-drawn under-construction projects nearing completion or becoming possession-ready, despite being ineligible for sale. The stakeholders, however, remained hopeful ahead of the RERA website launch in the forthcoming quarter. Real estate sentiment was especially vibrant in the IT-driven locales such as Manikonda, Kondapur, Gachibowli and Kukatpally.
Demand was observed primarily for properties priced up to Rs 45 lakh. The gradual bridging of the demand-supply lacunae in this segment proves that developers are finally able to gauge buyers’ sentiment and tweak their offerings accordingly.
Phase II of the metro project, which is to be completed by early 2019 and government initiatives towards enhancing investment in the IT hubs of Nanakramguda and Gachibowli will work in favour of the residential landscape. Overall, the city’s realty is set to take wings and a resurgence in sales is anticipated in the festive quarter.
The stagnancy of Q1 2018 gave way to a slightly cheerful Apr-Jun 2018, with average weighted home values bolstering by three percent, QoQ, in Hyderabad. A spike in capital rates, however, was not representative of improving sales, which remained modest due to the absence of a RERA body. Stakeholders continued to wait for a real estate regulator as under-construction projects inched towards completion, leading to incremental growth in property price tags.
Nearly 85 percent of the tracked localities in Hyderabad recorded a spike in property prices in Apr-Jun 2018, as compared to the preceding quarter. New launches, however, continued to remain restricted in anticipation of a real estate regulator in the forthcoming months.
The affordable locales of Pragati Nagar and Himayat Nagar topped the capital charts with five percent growth, each, in Apr-Jun 2018, vis-à-vis Jan-Mar 2018, showcasing Hyderabad’s appetite for properties priced around Rs 40-45 lakh.
The western regions of Manikonda, Madhapur, Kondapur, Gachibowli and Kukatpally, which are also a part of Hyderabad’s IT belt, witnessed price points heading north by a margin of 1-5 percent, QoQ.
Proximity to HITEC City helped several localities post growth on the capital graph in the Apr-Jun 2018 quarter, including Attapur, Hafeezpet and Miyapur. The micro-markets boasted of a quarterly surge of four percent, each.
Miyapur attracted end-users on the back of a plethora of mid-range, newly-constructed properties priced around Rs 50-60 lakh. The opening of the Miyapur-Nagole metro corridor in the March ending quarter of 2018 also lent cheer to the real estate market of the neighbouring housing pockets.
The upmarket Banjara Hills, too, reported an incremental growth in home values. Price points increased to the tune of four percent, QoQ, due to steady commercial development and absorption.
Mirroring the capital segment, the rental market, too, showcased a growth trajectory in Apr-Jun 2018 vis-à-vis the same quarter in 2017, with average weighted rates improving by five percent. Most of the localities reported growth on the wave of office space consumption.
Banjara Hills and Attapur led the race with 10 percent growth in rental values, each. These two locales were closely followed by Madhapur and Gachibowli, each reporting a rise of nine percent, YoY.
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