Hyderabad sees 3.2 million sqft office space transactions from Jan- June

Hyderabad: Sales in Hyderabad’s residential market were pegged at 14,693 units from January to June this year. This is an increase of 23% over the corresponding period last year. This is the highest sales volume since 2011. New home launches during the same time increased to 21,356, up 28% over last year. West Hyderabad continued […]

Hyderabad: Sales in Hyderabad’s residential market were pegged at 14,693 units from January to June this year. This is an increase of 23% over the corresponding period last year. This is the highest sales volume since 2011.

New home launches during the same time increased to 21,356, up 28% over last year. West Hyderabad continued to dominate the city’s residential space, accounting for a market share of 62% of the total sales, said consultancy Knight Frank India in report `India Real Estate: H1’ released Wednesday.

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In the office space segment, the transaction volumes from January to June this year increased 101% to 3.2 million sqft from 1.60 million sqft last year. About 5.3 million sqft was completed in the same period. The Information Technology sector continued to be the key demand driver industry for Hyderabad. The sector has seen a 62% rise in office space transactions, up from 8 lakh sqft last year to 12 lakh sqft so far this year. BFSI sector’s share in the total transactions increased to 22% this year from 12% last year.

Rents increased 3.3% over last year. Also, the residential market of Hyderabad has not seen a single year of price decline since 2013. The prices this year increased 4%. Low home loan interest rates have been a demand. The city witnessed major developments in western part of Hyderabad covering Kokapet, Peerancheru, Gopanapalle, and Nallagandla.

About 47% of the units sold were in the Rs 50 lakh to Rs one crore category. Share of sales of units upto Rs 50 lakh remained at 21%.

“Hyderabad is the only city that has witnessed a constant price rise. While it is no longer one of the cheapest marketplaces in the country, it still remains a desirable destination for end-consumers and investors. There are concerns of overburdening the infrastructure due to easing of FSI limitations. Mid segment projects are expected to drive sales momentum in the city,” said Samson Arthur, Knight Frank India Hyderabad Senior Branch Director.

Despite IT sector players deferring expansion plans, IT continued to be the key driver industry in the office space segment, he said.