The Hyderabad real estate market saw launch of 6,000 residential units, about 45-50 per cent lower than the actual capacity, according to consultancy Knight Frank.

In its report, the consultancy finds that the residential market sentiments in Hyderabad have improved considerably over first quarter of FY13 after a relatively subdued phase last fiscal.

After a restrained absorption during the first three quarters of FY 2012, Hyderabad residential market witnessed some amount of upward movements in the year last quarter, which continued in the first quarter of the current financial year, it observed.

As of June 2012, around 58,000 residential units were under construction across various micro-markets in Hyderabad. Of the total upcoming supply in the residential market, the western region will account for a significant share of around 67 per cent.

The pace of project launch had substantially slowed down during the last financial year due to a Government Order No. 45, which mandated an allocation of 20 per cent of the developed land to the economically weaker section and as low income housing.

During financial year 2012, about 10,000 residential units were absorbed. While the absorption trend remained almost subdued across the first three quarters of fiscal 2012, Q4 FY 2012 witnessed some amount of upward movement.

Capital values in Madhapur and Gachibowli, the IT and financial hubs of the city, are expected to appreciate due to increase in enquiries on the back of growing end-user demand

With demand showing signs of revival in the past few months, developers have tried to keep the average property prices stable in order to sustain sales levels

>rishikumar.vundi@thehindu.co.in

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