Hyderabad: Hyderabad is showing steady signs of growth and stability in the residential space. The city, which has recently been named the world’s most dynamic city both on the commercial real estate and socio-economic fronts, has now become the only Indian city in top 20 among 150 global cities, in terms of home price appreciation, occupying the 14th spot with a nine per cent year-on-year (YoY) rise, well above the global average of 3.2 per cent, according to Knight Frank, for the third quarter of 2019 ending September 2019.
Price growth has been strong in the Hyderabad residential market as shortfall in launches diverted homebuyers towards the ready unsold units giving developers a bargaining edge, says the report.
Among other Indian cities, New Delhi stood at the 73rd rank globally, with a home price appreciation of 3.2 per cent YoY; Bengaluru at the 94th rank with a two per cent appreciation and Ahmedabad at the 108th rank with a 1.1 per cent rise.
On the other hand, certain Indian cities have seen de-growth in home prices. Kolkata was ranked at the 130th spot with a decline of 2 per cent, Mumbai at the 135th rank with a de-growth of 3 per cent and Chennai at the 136th rank with a fall of 3 per cent. Pune was the lowest-ranked Indian city standing at the 138th spot, registering a 3.5 per cent decline in home prices.
The Index tracks the movement in mainstream residential prices across 150 cities worldwide, using official statistics. Budapest in Hungary leads the Global Residential Cities Index Q3 2019 with the highest annual growth rate of 24 per cent, followed by Xi’an and Wuhan in China at 15.9 per cent and 14.9 per cent, respectively.
Prices across the 150 cities worldwide increased at 3.2 per cent on average, the weakest annual rate registered since the second quarter of 2015. Yet despite this, more than 78 per cent of the 150 cities tracked by the Index, registered either flat or rising prices over the 12-month period.
Samson Arthur, branch director-Hyderabad, Knight Frank India, told Telangana Today, “The fundamentals of Hyderabad are strong and the market is meeting the demand-supply aspects. The growth has been consistent since 2014, which was the inflection point for both Telangana and Hyderabad. In the last three years, the city has seen significant office take-up, which in turn is pushing residential growth. The home price appreciation in Q3 2019 augurs well to both developers and home buyers, as it spreads a positive sentiment of the overall outlook.”
“During the last four years, the growth in residential prices in most of the top eight cities of India has been below retail inflation growth and the gap has progressively increased since H1 2016. Hyderabad has been the only market to buck the trend and record residential price growth over the retail inflation level,” said Shishir Baijal, CMD, Knight Frank India.