TRERA registers just over 100 projects from Hyderabad
Till now, a total of 121 ongoing projects in Hyderabad have been registered with the Telangana Real Estate Regulatory Authority (TRERA). A total of 936 projects have been approved by the Authority across the State. The slow pace of RERA registration is impacting new residential supply in the city.
Metro expansion on the cards
Hyderabad Metro Rail Limited (HMRL) is planning to extend the Ameerpet-HITEC City corridor till Raidurg. The planned route is expected to become operational by August this year.
City to increase its commercial footprint with another Business Park
Hyderabad will see the addition of another 1 million sq ft of commercial office space in a business park established by GMR Infrastructure at a cost of Rs 350 crore. Each of the five towers in the project would span across 2.4 lakh sq ft. The consistent inflow of investment in commercial real estate across Hyderabad has led to a spike in commercial land rates by 30 percent. Commercial projects attract immigrants to the city, eventually improving housing demand.
Water woes to end in Greater Hyderabad
The State government inaugurated the Kaleshwaram Lift Irrigation Project (KLIP) worth Rs 80,000 crore, which will supply
40 TMC of water to the ambitious Mission Bhagiratha drinking water supply project. The project will also supply drinking water to about one crore residents of Greater Hyderabad.
Hyderabad emerges as a leader in office leasing
With office leasing activities touching 11 million sq ft, Hyderabad emerged as the most active commercial market in
the first two quarters of 2019. Small and medium-sized transactions accounted for a major share in the total leasing activity.
Backed by robust office leasing activities and competitive housing prices, Hyderabad continued to dominate the realty charts in Apr-Jun 2019. The city saw a quarterly increase of two percent in the total housing supply priced within Rs 40 lakh. More than 90 percent of the new supply was launched along the IT corridor alone – the Gachibowli-Financial District-Kukatpally belt. Maximum property registrations, too, were reported from localities such as Gachibowli, Madhapur, Raidurg, Nanakramguda, Financial District, Nallagandla, Kondapur, Guttala Begumpet Kothaguda, Hafeezpet, Chandanagar, Miyapur, and Madinaguda. However, slow-paced registration of new real estate projects under Telangana RERA restricted the growth of housing supply, which has far been outweighed by improving demand in the city, especially in the affordable housing segment. Out of 936 approved projects in the State, only 121 projects are located in Hyderabad.
Hyderabad, like other metros, also reported an improvement in the demand for under-construction properties in Apr-Jun 2019, thanks to revised GST rates. The popularity of such units went north by three percent in the quarter, against their demand recorded in Jan-Mar 2019.
Among top metro cities, Hyderabad reported the maximum number of new launches with 3,026 units in 2019. Unsold inventory, too, dipped in this quarter considering a higher number of property registrations made this year. Extension of Ameerpet HITEC City metro corridor to Raidurg, the launch of Kaleshwaram Lift Irrigation project and proposal to scrap GO No 111 norms are expected to boost real estate activities in and around the city in the ensuing quarters.
Rampant development in infrastructure and high office leasing activities cheered Hyderabad’s real estate market in the Apr-Jun quarter. Average weighted prices of residential apartments went up by a marginal one percent during the period. Suburbs located in proximity to the IT hubs of Gachibowli, Kondapur, and Madhapur witnessed maximum demand from end-users and investors, alike.
Similar to the previous quarter, Nallagandla witnessed a four percent hike in the average capital prices, QoQ, owing to its continued popularity among tech professionals working in Gachibowli and HITEC City. Hafeezpet, too, recorded a four percent appreciation in the average capital ‘asks’, QoQ. Due to its proximity to Kukatpally, Madhapur and Miyapur, the locality is gradually becoming a popular locale for residential real estate. Apartments in Hafeezpet are currently priced around Rs 5,100 per sq ft. A few other locations which remained popular amongst homebuyers include Manikonda, Nizampet, Miyapur, Gachibowli, Kondapur, Kukatpally, and Pragati Nagar.
Chandanagar reported a dip of three percent in average property rates in the Apr-Jun 2019 quarter, against Jan-Mar 2019. A plethora of illegal constructions in the region has been the primary reason behind dwindling property rates in the locale.
Notably, in April and May 2019, the revenue generated from property registrations in Gandipet jumped by around 100 percent, compared to the same tenure last year. On the other hand, Banjara Hills witnessed 13 percent appreciation in the same, highlighting a rise in demand for the peripheral locations as future housing destinations.
With over 50 percent of the overall housing demand in the city, affordable residential segment (within Rs 40 lakh) witnessed a demand-supply mismatch of 14 percent in this quarter. To augment the supply of affordable housing units in the city, the Greater Hyderabad Municipal Corporation (GHMC) announced its plans to develop another one lakh 2 BHK homes for
Economically Weaker Sections (EWS) in Greater Hyderabad limits. This might help bridge the demand-supply gap in the category in future.
The infusion of investments in the commercial sector has boosted the rental market, too. The rental landscape in Hyderabad reported a four percent growth in the average rental values, YoY. Madhapur, Nizampet, Mehdipatnam, Gachibowli, and Kondapur remained the top-performing rental markets in the city with over five percent rental appreciation, each, in the last one year.