Year of stabilisation for office market, transaction volumes similar to 2020: Knight Frank report
Knight Frank India on Wednesday said Hyderabad topped a list of eight major cities/regions, across the country, in 2021 on new residential sales growth front, registering an increase of 142% to 24,312 units.
Despite the year clouded by the pandemic-influenced adversity, the city’s residential and office asset classes have shown resilience in their performances, the property consultancy said in its latest report.
The year was the best since 2011 in terms of annual volume sales. In 2020, the number of new residential units sold in the city was 10,042, while in 2019 it totalled 16,267 units.
New home launches increased 179% year-on-year to 35,736 housing units in 2021. The launches stood at 12,826 in 2020 and 13,495 in 2019. Hyderabad was the only market in the country that has not seen a single year of price decline since first half of 2013.
The India Real Estate: H2 2021 report said 12,344 housing units were sold in Hyderabad during the second half, an increase of 135% year-on-year. At 48% of overall home sales, the mid segment of ₹ 50 lakh to ₹1 crore constituted the bulk of home sales during July-December period.
The report residential prices increased 5% year-on-year during the second half.
West Hyderabad in terms of localities, which includes Gachibowli, Kokapet and Nallagandla, remained the favourite for home buyers accounting for 60% of the total sales during the six months.
Office market wise, 2021 was a year of stabilisation for the Hyderabad office market with transaction volumes matching the previous year’s 6 million sq ft. New office completions were reported to be 4.6 million sq ft during the same period, the report said.
Residential demand in the city was firmly in the ready-to-move-in properties, a trend that also saw average age of inventory in Hyderabad reduce from 11.5 quarters in H2 2020 to 7.6 quarters in H2 2021, said Samson Arthur, Senior Branch Director – Hyderabad at Knight Frank India.
“Recent trends suggest an increase in demand for under-construction properties of established developers as well. While worries on overbuilding and consequent overburdening [of] the infrastructure exist due to the relaxation in FSI restrictions, sentiments in the residential market remain buoyant for the near to medium term,” he said in a release.
The residential and office markets in Mumbai, the National Capital Region, Bengaluru, Pune, Chennai, Kolkata, Ahmedabad were others considered as part of the Knight Frank report. Mumbai stood first in terms of number of residential units sales during 2021 at 62,989 units, an increase of 29% compared to the previous year. The units sold and the increase year-on-year for Bengaluru was 38,030 (61%); Pune 37,218 (38%); NCR 35,073 (65%); Kolkata 14,405 (62%); Chennai 11,958 (38%); and Ahmedabad 8,911 (37%).
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