Telangana RERA website goes live
After a delay of over a year, Telangana RERA launched its official website, with the online payment facility, in September. Until August 2018, just over 16 residential projects and five real estate agents were registered under the Act, marring realty sentiment. The formulation of the website would expedite the registration process under RERA .
Hyderabad bets big on road projects
Road infrastructure received a shot in its arm with the Centre approving the development of the 330 km-long Regional Ring Road connecting Sanga Reddy, Gajwel, Choutuppal, Kadthal, Shadnagar and Chevella. A sum of around Rs 9,000 crore is being spent on various infrastructure projects under the Strategic Road Development Plan (SRDP).
Ameerpet-LB Nagar metro becomes operational
The 16 km-long Hyderabad metro connecting Ameerpet to LB Nagar became operational for the public in September. The corridor is an extension to the existing 29 km-long metro route between Miyapur and LB Nagar.
Foreign investments go up in Hyderabad
With $793 mn pumped into Hyderabad’s realty sector, the city surpassed Bangalore and emerged as one of the top investment destinations in South India. Commercial absorption, too, spiked by 15 percent in H1 2018 and stood at 2.69 mn sq ft as compared to 2.33 mn sq ft in H1 2017, spelling good news for the residential market in the city.
Land parcels at competitive prices, growing migrant population and robust office space absorption continued to be the growth stimulators for Hyderabad’s residential market in Jul-Sep 2018. The city registered an upswing in enquiries this quarter along with a trimming down of the ready housing inventory. The overall optimism in the market led the average weighted property prices to move north. The rental rates, too, registered a five percent upswing, YoY.
Project launches tread a steady trajectory with almost 1,500 new housing units being added to the city in Q2 2018. While the launch of the metro line from Ameerpet to LB Nagar propelled market sentiment, sluggish response to Real Estate (Regulation and Development) Act [RERA] offset any noticeable benefit to the housing segment. One month after the much-awaited launch of the official Telangana-RERA website, around 20 projects were registered from a pool of 5,000 ongoing projects in the State. The implementation of RERA, however, sparked the land market with several new projects hitting the ground this quarter.
The upcoming State polls in November triggered a temporary setback in property sales. Buying activity is anticipated to spur with developers eyeing the pre-festive period to augment sales. The city’s stability stemming from high rate of residential and commercial absorption coupled with rapidly plunging unsold inventory and infrastructural overhaul has given it the desired resiliency and growth.
Hyderabad reported a marginal uptick in the average weighted capital ‘asks’, QoQ and rental values, YoY, in Jul-Sep 2018. The extension of the current metro route, launch of the RERA website and progress on multiple infrastructure projects were seen as the primary market propellers this quarter. Snail-paced registration process coupled with the upcoming State elections, however, restricted capital growth to two percent, QoQ.
The market is poised for growth in Oct-Dec 2018 with developers floating multiple pre-festive discounts around Dussehra and Diwali.
Ahead of the State elections, the Jul-Sep 2018 quarter was marked by an increased in the number of property enquiries. Sales volume, however, did not report a noteworthy change. New launches remained meek as developers targeted the ensuing festive season and the year-end to resurge with new inventory. Amidst this, the city reported a rise in property absorption by almost 25 percent in H1 2018 against the same period last year. The city sits with the lowest stockpile of 28,000 residential units across the country.
Hyderabad witnessed a spike in property enquiries from Non-resident Indians (NRIs), a section of buyers who had withdrawn from the Indian realty market after the demonetisation move in November 2016.
The revival of investors upped the ante for plotted developments, which not only witnessed a hike in capital values, QoQ, but also supply. The quarter recorded a five percent hike in the availability of affordable properties, with land parcels priced within Rs 10-25 lakh contributing the maximum towards the inventory share.
Not surprisingly, the western quadrant continued to be the hub of realty activities. Locales such as Nizampet, Kukatpally, Miyapur, Narsingi, Kokapet, Kothaguda, Manikonda and Banjara Hills emerged as the most actively growing markets with a quarterly price increase of four percent, each. The IT hub fueling residential demand in all these areas, Gachibowli, witnessed slower growth on account of an oversupply of residential units.
The recently opened metro route between Ameerpet and LB Nagar actuated buyers towards localities such as Sanath Nagar, Masab Tank, Dilsukh Nagar and Nagole. The rental market also benefitted, particularly in Ameerpet and Himayat Nagar where residential leasing rates surged by four percent and 10 percent, respectively, YoY.
The booming IT industry continued to play a catalyst for the rental market where prices grew by five percent between Jul-Sep 2018 and the same period last year.
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