Hyderabad housing segment stabilising; office market recovering: Knight Frank India
Author(s): City Air NewsMr. Gulam Zia, Executive Director, Advisory, Retail & Hospitality, Knight Frank and Mr. Vasudevan Iyer, Director, Knight Frank, Hyderabad. Hyderabad, July 30, 2015: Knight Frank India today launched the third edition...
cityairnews
Jul 30, 2015 12:30
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Mr. Gulam Zia, Executive Director, Advisory, Retail & Hospitality, Knight Frank and Mr. Vasudevan Iyer, Director, Knight Frank, Hyderabad.
Hyderabad, July 30, 2015: Knight Frank India today launched the third edition of its flagship half yearly report - India Real Estate. It presents a comprehensive analysis of the residential and office market performance of Hyderabad for the period Jan- June 2015 (H1 2015).
Residential takeaways:-
•Hyderabad has witnessed the lowest number of launches amongst all Indian markets
•The city witnesses lowest sales except Kolkata
•Premium market hit hard by slowdown, will require over 2 years to offload unsold inventory; new launches adding up on the pressure
•West Hyderabad holds the highest unsold inventoryand yet remains the one of healthiest markets
•North Hyderabad is the most affordable market owing to lack of infrastructure development
Hyderabad Residential Market Trend:
Office Takeaways:-
•Hyderabad office market witnessing the lowest level in absorption since H1 2014
•Dwindling office space and unfulfilled demand drive rental growth
•Other Services sector’s share comprising of Healthcare and e commerce companies equals IT/ITeS
•Abject scarcity of good quality office space limited overall absorption numbers and forced occupiers towards the peripheral markets
•Gachibowli, Madhapur and Manikonda are the most preferred locations and have witnessed hike in rentals and occupier interest
Office New Completions and Absorption:
Speaking about the findings, Vasudevan Iyer, Director- Hyderabad, said:
“While there is a drop in residential launches and absorption levels are also low, the scenario is bound to change soon with the recent RBI rate cuts, infrastructure development with metro connectivity and further impact of the political stability.
The office market is experiencing an unsettled scenario with demand in place but scarcity of supply. The increase in demand, declining supply, falling vacancy, lackluster absorption and strengthening of rents shows consolidation of the office market but question remains as to how we retain and handle the momentum”.
