The residential market in the city has bounced back as new launches in H1 (first half) 2018 were 44% more than H1 of 2017 and sales breached the 8,000 unit mark for the first time since bifurcation. Office space transactions have increased by 15% compared to last year and the IT and ITeS sector has lost ground to other services sector.
According to a report released by Knight Frank India, the residential segment witnessed a sale of 8,313 units in H1 2018, a year-on-year change of 5%. The report stated that among several cities, Hyderabad saw a price appreciation by around 8%.
Speaking to the media, Knight Frank India branch director Samson Arthur said factors like Goods and Services Tax and Real Estate (Regulation and Development) Act-2016 among others had impacted the market in H1 2017. He pegged this appreciation to a steady demand for units and a shortage of ready-to-move-in units. The largest market in the city is west Hyderabad – comprising areas such as Kukatpally, Kondapur, Madhapur and Gachibowli – which witnessed the largest number of launches and accounted for a market share of 71% and an overall sales share of 69%.
Residential markets across the city recorded a growth except east Hyderabad which comprises Uppal, Malkajgiri and L.B. Nagar. Explaining the launching and buying patterns, Mr. Arthur said, “The ₹75 lakh to ₹1crore bracket has seen the highest number of launches.” This, he said, is despite affordable housing being given a thrust. “The ₹50 lakh to ₹75 lakh bracket continues to do well,” he said.
Underscoring the correlation between growth in office space segment and the residential market, Mr. Samson said, “If office space does well, residential one follows”. He explained that the gap for one market that had an effect on the other – between two and three years – is decreasing. The report stated that while IT and ITeS sector had dominated the office space transactions in H1 2018, its share dropped to 36% as against 51% in H1 2017. This, the report said, is due to unavailability of large floor plates.
The share of transactions by the other services sector has grown from 23% to 43%.