Hyderabad housing segment demand outstripping supply

Hyderabad housing segment demand outstripping supply; office market in consolidation mode: Knight Frank India

Knight Frank India today launched the fourthedition 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 July- Dec 2015 (H2 2015).

Residential takeaways:-

·        While demand holds steady in the housing segment, both supply and unsold inventory at their 5 year lows

·        H2 2015 does see a trend reversal in terms of launches as they grow 11% YoY  West and North Hyderabad  dominate in new launches during H2 2015

· 

       Development activity in East Hyderabad  locations like Uppal, L.B Nagar, Malkajgiri suffers due to lack of employment opportunities and poor connectivity

·        The premium segment which was under pressure in the first six months of 2015 saw further decline in interest during the second half as demand flattened out.

Hyderabad Residential Market Trend:

Office Takeaways:-

·        Hyderabad office market continues its consolidation mode with increasing demand

·        The office market witnesses highest occupier interest in the second half since 2010 backed by big ticket transactions by Qualcomm, Salesforce, JP Morgan etc.

·        Reducing vacancy levels cause surge in rental growth

Office New Completions and Absorption:

Speaking about the findings, Vasudevan Iyer, Director- Hyderabad, said:

"The Hyderabad office market has definitely shifted up a gear in H2 2015 by absorbing 3.1 million sq. ft, posting the strongest half yearly absorption numbers in its history. We believe that we have seen a glimpse of the promise Hyderabad holds as a commercial and IT office space destination, rivalling the likes of other Indian front line cities during this period and this momentum is expected to continue.

The situation in the residential market is not as positive, though, unsold inventories are at their lowest level since 2010 and steady demand during the last 18 months does point at a possible improvement in residential market fundamentals in the months to come."

About Knight Frank:

Knight Frank is the leading independent global property consultancy. Headquartered in London, Knight Frank and its New York-based global partner, Newmark Grubb Knight Frank, operate from 370 offices, in 55 countries, across six continents.  More than 12,000 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 1000 experts across Bangalore, Delhi, Pune, Hyderabad, Chennai, Kolkataand Ahmedabad. Backed by strong research and analytics our experts work with clients to 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 more information, visit www.knightfrank.com

For futher information please contact:-

Abanti Banik Manager – PR & Branding Knight Frank India +91 9972998403 abanti.banik@in.knightfrank.com

Dayanand(Blue Lotus) +919849122317 dayanand@bluelotuspr.com

Supreeth( Blue Lotus) +919505129309 Supreethp.bluelotuspr@gmail.com

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