Anuj PuriAnuj Puri, Chairman – ANAROCK Property Consultants

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.

Hyderabad Real Estate Supply-Absorption Trends
Hyderabad Real Estate Supply-Absorption Trends
  • 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.

Anuj Puri, Chairman – ANAROCK Property Consultants

NCR has witnessed a 3 to 5% decrease in average per-square-foot property prices over the last one year (Q4 2016 – Q3 2017).

 

 

See chart below:

Currently, NCR has the maximum number of unsold units among all the top cities in India. An approximate 2 lakh unsold units are stocked up across different cities in the region. Greater Noida has maximum share of unsold inventory, followed by Gurugram.

There are many reasons for the price decrease in NCR. To begin with, excessive delay in project construction and possession has hurt buyers’ sentiments and led to subdued demand. Also, many projects have been stalled due to agitations and litigation issues.

The massive unsold inventory itself has acted as a sentiment suppressant – and finally, while demonetisation, RERA, and GST are potentially positive moves for the industry, they have played a significant role in reduced buyer sentiment, contributing to the price falls.

Prices are likely to remain stagnant for a few more quarters. Factors such as the huge unsold inventory,