RERA registration moves at snail’s pace
Merely 81 projects from Hyderabad have been registered under Telangana RERA so far. Despite repeated date extensions and penalty announcements, the State has failed to pick up the pace of registering projects, impacting the new residential supply in the city.
Ameerpet-HITEC City metro becomes operational
The 10 km-long Ameerpet-HITEC City metro route commenced in March 2019. The project holds the potential to impact real estate markets along the connected locales including Durgam Cheruvu, Madhapur, Peddamma Temple, Jubilee Hills, Yusufguda, and Madhura Nagar.
Hyderabad among 20 global cities attracting healthy FDI
After Bangalore, Hyderabad has been included in the top 20 global cities attracting Foreign Direct Investment (FDI) into the Information and Communications Technology (ICT) and electronics sectors. The city secured 14th position among the top ‘FDI Markets’ globally, with as many as 20 companies investing in the sectors in 2018. This highlights the improving economy and commercial expansion of the city.
Absence of green authorities delays 300 realty projects in Telangana
In the absence of a State Environment Impact Assessment Authority (SEIAA) and State Expert Appraisal Committee (SEAC), over 300 industrial and real estate projects in Telangana have not received environmental clearances, significantly delaying the development work.
New master plan for GHMC on the cards
Telangana government is working on a new master plan for the Greater Hyderabad Municipal Corporation (GHMC). The plan is expected to be ready within three months and will divide the city into three parts — areas within ORR, beyond ORR and within the proposed regional ring roads.
Competitive property prices, an active commercial and office leasing market, and robust infrastructure development helped Hyderabad’s residential market continue treading growth trajectory in the quarter ending March 2019. While infrastructure projects such as the Regional Ring Road (RRR), and the commencement of the new metro corridor between Ameerpet and HITEC City improved market sentiment, factors such as limited supply of houses priced within Rs 60 lakh and slow-paced registration of new projects under Telangana RERA countered growth. Out of the 551 projects registered under the Act across the State, only 81 projects are located in Hyderabad.
The city, majorly driven by the IT/ITeS sector, has been witnessing spill-over demand from its expensive southern counterparts such as Chennai and Bangalore. The average weighted capital values of the residential units have gone up steadily over the quarters, especially in the suburban areas located in proximity to the IT hubs of Gachibowli, Kondapur, and Madhapur. Areas such as Tellapur, Chandanagar, Miyapur, Kokapet, Manikonda, and Nizampet posted maximum housing demand in the city in Jan-Mar 2019.
Policy initiatives such as Pradhan Mantri Awas Yojana (PMAY) and Goods and Services Tax (GST) rate slash on under-construction properties priced under Rs 45 lakh are expected to bolster the market and strengthen demand in the ensuing quarters. Some developers, however, have already increased the ‘ask’ rates of new units because of the exclusion of ITC benefit from the GST purview. This might hurt the under-construction segment adversely in the times to come.
Consistent improvement in infrastructure and increased office leasing activities cheered Hyderabad’s real estate market this quarter, too. In Jan-Mar 2019, the average property values in the city went north by three percent compared to the last quarter. Unsold inventory has been steadily diminishing over the past few months as the city enjoys a high rate of absorption in the residential segment.
Topping the property price charts, Nallagandla witnessed a jump of five percent in the average capital prices, QoQ. The area has emerged as a favoured residential hub for IT professionals working in Gachibowli and HITEC City. With enhanced connectivity, Nallagandla is now turning into a premium destination for residential real estate with properties priced around Rs 5,100 per sq ft.
Rapid commercialisation in areas such as Jubilee Hills, Banjara Hills, SR Nagar, Kukatpally, and Ameerpet has pushed up the popularity of nearby localities including Shankerpally, Mokila, Kokapet, Gajularamaram and Gopanpally among home aspirants. Comparative affordability helped Gajulramaram and Pragati Nagar record a price hike of around four percent, QoQ.
Delayed construction of the twin flyovers near Biodiversity Junction, connecting Gachibowli to Mehdipatnam, and Mehdipatnam to Kukatpally impacted the property values in the region. Mehdipatnam consequently witnessed a price correction of four percent in the quarter ending March 2019 versus the previous quarter.
The launch of Grade A office spaces in Hyderabad pushed housing demand up from native and migrant population who preferred 2 BHK units to other configurations. Noticeably, areas in and around the popular IT hubs such as Manikonda, Kokapet and Kondapur recorded maximum sale of 2 BHK units.
Contrary to the increasing popularity of smaller homes, which capture about 70 percent of the overall housing demand, ultra-luxury apartments in the city are vying for buyers. Much alike the previous quarters, the supply of apartments in the luxury segment, i.e. homes priced between Rs 60 lakh and Rs 1 crore outweighed its demand by 15 percent in Jan-Mar 2019.
The rental market in the city, too, reported a three percent growth in the average ‘asks’, YoY. HITEC City, Gachibowli and Kukaputty continued to be the best performing rental markets in the residential category. Notably, the operationalisation of the Hyderabad Metro improved the rental values in the areas along the metro route by 6-8 percent, YoY.
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