Price of value housing in Hyderabad rises by 41% in 2016; new launches increase by 43%: Report

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Hyderabad property market continue to outstrip other major cities in terms of demand and supply.

According to a latest report by Cushman and Wakefield, total launches in the city rose 43% to 11,800 units during 2016. Majority (67%) of the new residential launches in the city are located in the western quadrant due to the close proximity to the office markets of Madhapur, Hi-tech city and Gachibowli,and better connectivity to other parts of the city.

“Developers are focused on the mid-segment as the demand by IT-BPM employees in this segment is more. As a result, launches in the mid segment rose three-folds to approximately 9,800 units. However, due to demonetization move in the last two months of 2016, developers focused on completing their existing projects rather than launching the new projects,” report said.

According to the report, in Hyderabad, the average ticket price of new launches in the value housing segment rose by 41% to Rs 40 lakhs in 2016, led by both an increase in average unit size and higher average launch prices. The average launch price rose 6% to INR 2,650 persf in 2016, as developers launched some projects at higher prices. However, majority of the increase in ticket size was led by the higher average unit size, which rose 33% to 1,500 sf.

The report said, value housing and mid segments in the city are witnessing stable demand created by the salaried employees from the IT-BPM sector. Hyderabad’s housing market has been relatively resilient owing to strong end-user demand, trickling down from the traction seen in the commercial office segment. Moreover, until 2014 the city’s housing market, sawlow prices owing to political instability in the state. The market has started picking up traction from 2015 post the bifurcation of the state.

Courtsey: Sobia Khan | ET Bureau | 13-March-2017

      
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