Hyderabad residential market sales decline in second half of 2016: Report

The Hyderabad residential market was witness to a marginal decline during the second half (H2) of 2016.

Real estate consultancy Knight Frank India in its half-yearly report on India Real Estate said new launches witnessed growth of 3 per cent, while sales dropped by 6 per cent during H2 2016 compared to H2 2015.

The year 2016 would have been marginally better than 2015 had it not been for the demonetisation move, the report said.

Gulam Zia, Executive Director - Advisory, Retail and Hospitality, Knight Frank India said “The Hyderabad residential market withered over the last five years after peaking in 2012. While the city observed more than 22,700 units in new launches and 19,000 units in sales during 2012, these numbers have fallen by 49 per cent and 21 per cent respectively since then.”

“The reduction in new launches and relatively stable sales volume helped in rebalancing the market to a great extent as the unsold inventory level dropped to its lowest level in the last six years,” he said.

The unsold inventory has dropped to its lowest level in the last six years to 28,088 units in H2 2016

The Government's demonetisation move created a major dent in the residential market in Q4 2016, with sales plunging by 40 per cent to 3,034 units.

West Hyderabad remains the preferred market, largely because buyers have a preference for ready-to-move-in properties, closer to the office hubs.

While Hyderabad’s premium market experienced 56 per cent year-on-year de-growth in launches in H2 2016, the office market witnessed its highest yearly office space transaction in 2016.

The Hyderabad office market witnessed nearly 6 mn sq ft of office space being transacted during the year, up 31 per cent over the 4.6 mn sq ft mark achieved in 2015.

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