Bangalore, Hyderabad & Chennai saw a 77% increase in new residential supply in 2018; NCR 16%, MMR & Pune 17%
Chennai led new launch supply with a 98% increase, Bangalore 91%, Hyderabad 43%
Bangalore, Hyderabad & Chennai saw a 20% increase in housing sales; 18% in North, 15% in West
The year 2018 was a mixed bag of highs and lows for the Indian real estate sector. The initial pangs of policy alterations seemed to fade away with each region seeing visible signs of recovery across segments.
Even as the liquidity crunch and stalled/delayed projects continue to plague the sector, the main southern cities of Bangalore, Chennai and Hyderabad actually saw faster growth momentum than their northern counterpart NCR.
Retail, commercial and residential real estate saw a lot more activity in Southern cities than in the North.
As per ANAROCK data, the southern cities raced far ahead of those in the North, including entire NCR.
Hyderabad’s residential demand has witnessed a significant increase due to rising employment opportunities and positive market outlook, which were just marginally affected by policy changes including DeMo, RERA and GST.
ANAROCK Property Consultants’ report ‘Hyderabad: The Bright Spot in Indian Real Estate’ analyzes the city’s major real estate trends and highlights that the city has emerged as one of the most sought-after residential destinations in the country.
The city is experiencing a phenomenal spurt in residential real estate activity with appreciating capital values and increase in retail and office space absorption from 2014 to 2018.
Policy support from local government to strengthen the socio-economic indicators has largely attracted investments post-2014.
Absorption in Hyderabad increased by 21% in 2017 as against the previous year due to positive market sentiments coupled with growing IT workforce mainly in the western zone. The absorption in Q1 2018 is at par with the new supply being pumped into the market.
The unsold inventory in the city has been declining gradually since 2017.