Hyderabad housing segment stabilising;
office market recovering: Knight Frank India
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 inventory and yet
remains the one of healthiest markets
·
North Hyderabad is the most
affordable market owing to lack of infrastructure development
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
scenerio 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 scenerio with demand in place but
scarcity of supply. The increase in demand, declining supply, falling vacancy,
lacklustre absorption and strengthening of rents shows consolidation of the
office market but question remains as to how we retain and handle the
momentum”.
