Hyderabad records highest half-yearly office leasing ever; residential launches hit historical logw: Knight Frank India

Knight Frank India today launched the eighth edition 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–December 2017 (H2 2017).

Residential Takeaways:

  • Home launches hit an all-time low in H2 2017 with a meagre 940 units entering the market – an 84% drop over H2 2016
  • Near standstill market courtesy RERA and its impending implementation
  • Sales volumes were also down by 13% compared to H2 2016
  • Lack of clarity on GST and shortageof ready to move in homes brought down sales in H2 2017
  • Developers shift focus towards affordable homes. Close to 40% of the launches that happened in the city were under INR 5 mn.



Office Takeaways:

  • Hyderabad recorded the highest ever office transaction (3.34 mnsqft) in a six month period in H2 2017; however on a YoY comparison it fell by 4% in 2017
  • With bulk of the projects in the pipeline new office supply dropped by 48% YoY in H2 2017
  • Want of quality office space has pushed vacancy levels across key markets such as Madhapur, HITECH City, Gachibowli and Nanakramguda to 2-4%
  • While the share of the IT/ITeS sector, traditional market leader among occupiers in Hyderabad shrunk to 51% in H1 2017, it recovered to 75% in the subsequent six month period. The share is however; lower than the 87% commanded in H2 2016


Speaking about the findings, Samson Arthur, Director – Hyderabad, Knight Frank said, “2017 had been a mixed bag for the Hyderabad real estate market. On the residential market front, launches, between July and December, hit a new low, largely due to RERA and its impending implementation. In contrast Sales in the residential sector fared relatively firm though they were marginally down compared to 2016. Ready-to-move-in houses were higher in demand during the second half of 2017, as consumers seemed to indicate a resistance to higher costs resulting out of GST burden on under construction apartments.

As for Office market, H2 2017 H2 i.e. July to December witnessed a new record of office space transaction over a six month period in Hyderabad. New completion, however, continued to be under stress as it couldn’t satisfy the increasing demand. As a result vacancy levels hit a new low and rentals continued to move north at 9% escalation over last year.”



About Knight Frank

Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 14,000 people operating from 413 offices across 60 countries. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants. For further information about the Company, please visit www.knightfrank.com.

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 more information, visit www.knightfrank.co.in.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: