HYDERABAD: The Hyderabad real estate market is finally seeing a correction, leaving behind the bad times, reveals reputed real estate consultancy Knight Frank India’s latest report.
Knight Frank India has recently released the report on real estate sector in 2015. The report was prepared after studying the realty scenario in major cities in India. Good thing for Hyderabad is that the sector is poised for a correction.
“The demand for housing segment outstripped supply in Hyderabad in the second half of 2015. As a result, the unsold inventory has decreased. Even office market is in a consolidation mode as the demand for office space also rose in the city. As a whole, the unsold inventory in Hyderabad market has been unwinding, which shows the city realty is on a path of correction,” said Vasudevan Iyer, director of Knight Frank, Hyderabad.
Due to the correction, Hyderabad market’s unsold inventory was at its lowest at the beginning of year 2016 when compared to the situation in the past five years.
According to the report, Hyderabad office market shifted gears in second half of 2015 by absorbing 3.1 million sq. ft, posting the strongest half-yearly absorption numbers in its history. The reason for growth in office space absorption is that many MNCs see Hyderabad as a commercial and IT office space hub which provides quality space at cheaper prices.
Many reputed MNCs like Google, Qualcomm, Salesforce and JP Morgan have acquired large chunks of office space here.
Though the situation in the residential market is not as positive as in office space segment, steady demand during last 18 months does point to a possible improvement in residential market fundamentals in coming months.
A correction has to occur in any market which sees a sudden rise or fall or rush. Hyderabad realty has been picking up over the past six months and we hope that a correction in the market will benefit it, says Gummi Rami Reddy, president of Confederation of Real Estate Developers Association, Hyderabad chapter.
With vacancy levels reducing, even the rental segment is set to witness a growth, much to the relief of property owners and investors in the city.
■ Hyderabad realty sector poised for correction
■ Unsold inventory decreased in second half of 2015
■ Prices to remain stable due to this decrease
■ Rental segment is set to grow in 2016