Hyderabad Records High Growth in New Apartment Supply in 2015
With the political situation stabilising in Hyderabad post bifurcation of state in early 2015, the real estate activity within the city started to turn northwards. Various deals saw the light of the day which included leasing of office space by taxi major Uber, Google picking up space to build its own campus on over 7.2 acre plot, among others.
Moreover, Hyderabad realty looked promising which was also indicated by an increase in new supply of apartments in the city. As per “Hyderabad Real Estate in 2015”, CommonFloor’s annual report, the city saw about 50 per cent new apartment launches as against just 38 per cent in 2014.
Western parts witness significant new supply
Hyderabad has been witnessing a good growth in new apartment supply in the last couple of years, owing to the growth in IT/ITeS sectors, buoyant office spaces and lower ticket prices of residential properties. A rapidly growing infrastructure has been another key driver for the city’s growth as a favoured real estate destination.
As per the annual report, most apartment projects were launched in areas that are either IT hubs or had spillover demand from prime areas, where demand from IT professionals was expected to be high. These areas were primarily in the western and northern parts of the city. In fact, west Hyderabad witnessed a whopping 87 per cent of the new supply, followed by north Hyderabad with 10 per cent of the new supply.
The top areas that witnessed significant apartment supply this year included Kondapur, Gachibowli, Kukatpally, HiTech City, Nizampet, Nanakramguda, Manikonda, Quthbullapur, Bachupally and APPA Junction.
What is available?
BHK availability: Hyderabad witnessed a significant supply of 3BHK units followed by 2BHK units this year. While 3BHK flats comprised 51 per cent of the total new unit supply, 2BHK flats comprised 33 per cent. This may be considered as a result of affordability.
Budget: Hyderabad had almost a uniform supply of apartments across all budget segments – affordable (up to Rs 40 lakh), mid-segment (Rs 40-70 lakh) and luxury (beyond Rs 70 lakh).
Rental yield: Prime areas in Hyderabad such as Ameerpet, Kondapur and Gachibowli offered a good rental yield this year. The gross rental yield of the top areas were about 3.8-4.2 per cent.
