Hyderabad is a very conscious consumer ground. The city observed quite a lot of improvements over the past year but the market is yet to get on the track and rise to the occasion. The year 2015 has been awfully slow and there were hardly any demand. As of now, among the TIER-I cities this piece of workoffers scope for end-use investmentsand is the most affordable in realty market.
How has the year 2015 been?
It has been noticed that the absorption rate during 2015 was very weak as consumers continued with watch policyanda wait. Hyderabad is an end-user driven city. The Hyderabad market has many unsold stock situation comparing with other Tier-1s.
Also, the demerger of the state of Andhra Pradesh pushed many corporate houses to a watchandwait level in terms of committing to office space and residential in the Hyderabad. Areas such as Kondapur, Gachibowli, Manikondaand Miyapur continued to dominate the affordable market while Hitec City and Banjara Hills led the premium segment of the city.
The infrastructure aspirations in the city, such as the under construction Hyderabad Metro Rail project, is going to help boost investor interest for property. There are hopes of many investors and builders projects along the lines and the coming year sees it at cloud nine.
Moreover, the office market in 2015 picked up momentum with heightened expansions,pre-commitments and relocations as compared to 2014. All in the entire requisite for all grades of office space, which includes pre-commitmentsandnet-take up, is way greater than past years. We have seen major players like Google, Amazon, Deloitte, UHG, Qualcomm, JP Morgan, Hyundai Mobis, Accenture, CDK Global and Uber taking up space this year.
It is seen that the residential markets takes time for to pick up as end-users are still cautiously are evaluating options more carefully andoptimistic. Pre-bifurcation uncertainty had affected the market in late 2014 but project launches took a bump in 2015. The projects in western quadrant who are near possession are going to be bought at surged up prices.
The 2016 Outlook
The ideal locations to invest are towards the western corridor such as Narsingi, Gachibowli, Tellapur,Kokapetand Manikonda. The year 2016 has been better for both residential and office markets in the city. Most of the high quality and new office supply in Gachibowli and Madhapur shall be occupied. Residential projects should fare well on the back of lower interest rates, infrastructure improvements, lower prices as compared to other citiesand positive job market.
So all the factors for growth prospects of Hyderabad are well in place such as good quality of life, low cost of living as compared to other Indian metros, a proactive governmentand rapid pace of infrastructure development. It is believed that the market is going to sky rocket and gain ecstatic reputation for investment and livelihood. The market opportunity in Hyderabad is excellent but there is a need to push sale by offering discounts and freebiesweather out the real estate crisis.