Property consultancy Knight Frank expects customer demand in the residential realty market of Hyderabad in 2016 to remain stable amid fewer project launches.
Such a scenario, Director-Hyderabad Vasudevan Iyer says, could push up the property prices.
According to the India Real Estate report (July-December 2015) released by the consultancy, on which he addressed presspersons here on Thursday, the prolonged consolidation witnessed in the market is expected to persist in the first half of 2016 as well. Developers would wait for further inventory unwinding to continue.
In 2015, “while the sales volumes fell marginally, by one per cent compared to the previous year, new launches dropped by a more pronounced 14 per cent.” The year ended on a flat note with no show of definite signs of recovery in market activity. The demand, however, remained virtually the same as in 2014.
End of 2015 “did show some promise in terms of supply as the H2 saw 11 per cent growth in the number of units launched, the report said. The demand on a half-yearly basis is around 7,000-7,500 units, he said, adding that unsold inventory level stood at 31,500 units.
“The situation in the residential market is not as positive though unsold inventories are at their lowest level since 2010. The steady demand in the last 18 months does point at a possible improvement in residential market fundamentals in the months to come,” Mr.Iyer said.
Hyderabad office market, Director (Occupier Solutions Group) Arpit Mehrotra said the demand increased, while the reducing vacancy levels is causing a surge in rental growth. In the second half of 2015, 3.1 million sq. ft. was absorbed, the strongest half-yearly absorption numbers.