Twin city catching up with peers on the
residential
Puppalaguda–Narsingi cluster to witness 41% price
appreciation by 2020
Knight
Frank India today launched the second edition of its Residential Investment Advisory Report 2016 for the Hyderabad
market. This report identifies the top investment destinations in Hyderabad for
the next five years (till 2020) and also reviews the performance of the
previously recommended destinations.
Key takeaways
·
The Puppalaguda–Narsingicluster is currently priced at Rs. 2,900
per sqft and is expected to touch `4,100 per sqft by 2020.
Strong
demand and restricted supply, coupled with proximity to the employment hubs of
HITEC City, Kondapur, Kothaguda and Gachibowli, are the primary reasons for the
emergence of this cluster as an investment destination. This is the most
affordable residential cluster within a 15–20 minute commute to the prime
employment hubs. Additionally, 10 million sq ft of office space is expected to
be added in the next five years, which would create incremental employment of
approximately 125,000. This is likely to further support residential price
growth in these locations.
·
Uppal and L.B. Nagar in the east and
Falaknuma in the south are also expected to see significant improvements in
terms of connectivity through the metro; however, locations with comparable
prices in the west will prove to be strong competition, as they are in close
proximity to the western employment hubs.
Top
residential investment destinations
|
Rank
|
Location
|
City
|
2015
|
2020E
|
Price growth
|
|||||
|
(Prices in `/sqft)
|
(Prices in `/sqft)
|
|||||||||
|
Min.
|
Max.
|
Avg.
|
Min.
|
Max.
|
Avg.
|
2015–2020
|
CAGR
|
|||
|
1
|
Puppalaguda–Narsingi
|
Hyderabad
|
2,600
|
3,200
|
2,900
|
3,700
|
4,500
|
4,100
|
41%
|
7.2%
|
Source: Knight
Frank Research
According to Dr Samantak Das,“Our analytical focus was primarily
to understand the state of the subject market’s connectivity with important
locations, and the social and physical infrastructure facilities available
currently and in the foreseeable future. The prevailing prices in Hyderabad are
the lowest among all the front line cities of India. Excellent connectivity and
well-developed infrastructure have ensured that residential prices in most
locations have remained in a similar price band. However, we have identified
the Puppalaguda–Narsingi cluster as the best investment destination in
Hyderabad, as it is the only location within a 15–20 minute commutable distance
from the employment hubs of the city at an average price of Rs. 2,900 per sq ft. We expect prices in
this cluster to appreciate by 41% till 2020.”
According toVasudevanIyer, “Despite a slowdown in
the residential market, there is positivity in the outlook.The
end of the political storm has brought about plenty of stability, leading to
positive sentiments. With the commercial space shaping up extremely well,
residential is set to follow. I would strongly recommend that investors look
for locations with potential in terms of fetching returns as well as with sound
infrastructure in place as in the case of the Puppalaguda–Narsingi cluster, and
the supply constraint will surely encourage price growth in the future.”
About
Knight Frank
Knight Frank is a leading independent global property
consultancy. Headquartered in London, Knight Frank has more than 13,000 people
operating from over 400 offices across 58 countries. These figures include
Newmark Grubb Knight Frank in the Americas and Douglas Elliman Fine Homes in
the US. At Knight Frank, professionals handle in excess of US$1 trillion (£643
billion) worth of commercial, agricultural and residential real estate
annually, advising clients ranging from individual owners and buyers to major
developers, investors and corporate tenants.
In India, Knight Frank is headquartered in Mumbai and has
more than 1,000 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai,
Kolkata and Ahmedabad. Backed by strong research and analytics, our experts
offer a comprehensive range of real estate services across advisory, valuation
and consulting, transactions (residential, commercial, retail, hospitality,
land& capitals), facilities management and project management.
For further information, please contact:
|
Abanti Banik (Knight Frank India)
Manager – PR & Branding, South
+91 9972998403
|
Dayanand (Blue Lotus)
+919849122317
|
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